External New Financing Strategy
Designing an external new financing strategy includes a comprehensive assessment of potential new financing options from concessional and nonconcessional sources , as well as possible grant inflows, focusing on how best to mobilise the highest quality financing to support national development priorities and ensure debt sustainability.
To assist countries evaluate the quality of external resources, DFI has developed an assessment methodology on the basis of resource concessionality, conditionality, predictability, flexibility, types of finance, focus on national priority sectors/projects and other policy and procedural criteria.
A summary of the main issues for strategy design are set out in Key Analytical issues for Government External Financing and Diversifying Sources of Financing for Development.
To help countries strengthen their capacity in this area, DFI has developed detailed training materials and manuals,conducted research and analysis and provides advisory services.
Latest work DFI carried out in this area:
29-30 September – COMSEC / OIF Meeting on Innovative Financing
DFI helped to facilitate a technical meeting of Commonwealth and OIF country and secretariat officials, held at Wilton Park in the UK, to raise awareness and discuss the practicalities of various types of innovative financing instruments and mechanisms. DFI gave a presentation on public revenue-raising measures such as Financial Transaction Taxes and taxes on aviation and shipping fuels. The meeting followed the recent Commonwealth and OIF Finance Ministers' meetings which discussed these issues (see 22 September).
13–16 September – Final HIPC CBP Mission to Ethiopia
The final mission of the HIPC Debt Strategy and Analysis Capacity-Building Programme (see www.hipc-cbp.org was conducted by DFI and a Zambian expert, fittingly to Ethiopia which made major strides in improving its debt strategy capacity under the CBP. The mission agreed with the Government on a debt strategy and analysis capacity-building programme for potential donor funding.
25 July - 5 August – Southern Sudan Debt Policy and Capacity Building Mission
DFI was funded by the Joint Donor Capacity Building Trust Fund for Southern Sudan to help the Government of the newly-independent Republic of Southern Sudan to examine policy options for post-independence development financing – especially borrowing on concessional terms – and the institutional and capacity-building measures required to establish a debt management unit well coordinated with wider economic policymaking. To read more on Southern Sudan’s debt, click here.
25–29 July Mauritania Diversifying Development Financing Advisory and Capacity Building mission
As one of the last missions of the HIPC Debt Strategy and Analysis Capacity Building Programme, Development Finance International conducted a mission to Nouakchott to help the Government examine options for diversifying sources of development financing away from concessional OECD aid. The mission designed a plan for diversification and for reinforcing Mauritania's institutional structures to manage all development financing, which will be finalized with Government by the end of Q3.
11 February – Second Guinea Aid / Auditing Mission
The second mission of the national capacity building programme in aid management, and audit and control is currently taking place in Conakry. After the first evaluation mission which reviewed the Guinean regulatory, legal, institutional and operational framework, two DFI consultants are now implementing the agreed schedule by launching a training programme for Ministry of Finance executives and public investment experts.
December - Janvier 2011- Rwanda Financial Resource Mobilisation Strategy
A DFI associate, funded by UNDP, assisted the Government of Rwanda to design a Resource Mobilisation Strategy to fund the national development programme. This focussed on diversifying financing sources away from OECD aid to new concessional and private financing sources.
