Role of development finance institutions on sustainable development goals: poverty eradication

Abstract

Development Finance Institutions (DFIs) deliver services which aim at Sustaining Development Goals (SDGs) towards poverty eradication. The services delivered by DFI are quite unique and interesting. The study investigated role of DFI on SDGs with regards to poverty eradication. The study adopted critical review of recent works of literatures to identify the success factors of DFI’s as regards it role on the SDGs. In conclusion, undoubtedly, DFIs are becoming a key asset and a driving force for poverty eradication over the world. They share a common focus on fostering SDGs. Their mission lies in servicing the investment shortfalls of developing countries and bridging the gap between commercial investment and state development aid. The reviews of the previous literatures showed that that DFIs significantly impact on the level of job creation thus enhancing the standard of living and by helping countries catalyze the private investment required to meet the United Nations’ SDGs. The study therefore recommends amongst others that government should ensure that the money from DFIs are utilized efficiently and effectively for only the purpose it is meant for, to increase the level of infrastructural development and there is also need to address and resolve the growing policy contradiction between multilateral agencies as last resort sources of finance to cater for well-being, in order to reduce poverty and thus improve the standard of living of the people.