Are Southern-led MDBs the future of development finance?

Development finance is no longer just about aid. It’s about power, priorities, and who gets to decide.

For decades, institutions like the World Bank and IMF have set the agenda, with high-income countries holding the reins. But a shift is underway. Southern-led multilateral development banks (MDBs) – where borrowing nations are also the majority shareholders – are rewriting the rules.

These banks, like CAF (Development Bank of Latin America) and the Trade and Development Bank (TDB) Group, bring something different to the table: speed, flexibility, and a laser focus on local needs. But they also face hurdles: higher borrowing costs, limited global visibility, and the challenge of financing a just climate transition in economies still grappling with poverty.

With the Spring Meetings taking place later this month, this episode dives into the rise of these institutions. Are they the future of development finance? Can they complement – or even challenge – traditional MDBs? And what reforms are needed to unlock their full potential?

Guests

• Sara Pantuliano (host), Chief Executive, ODI Global
• Alejandra Botero, Director of Strategy and Development, CAF
• Chris Humphrey, Senior Research Associate, ODI Global
• Admassu Tadesse, Group President and Managing Director, TDB Group

Related resources

• ODI Global resources on multilateral development banks
• Southern-led multilateral channels for climate finance (Working paper, ODI Global)
• What makes an MDB an MDB? Southern-led multilateral banks and the sovereign debt crisis (Working paper, ODI Global)
• Climate-smart reform of multilateral development banks: priorities for the G20 (Policy brief, ODI Global)
• Investing for resilience: a panel discussion with Asian Infrastructure Investment Bank President Jin Liqun (Event video, ODI Global)
• What do borrowing countries think of MDB reform? (Think Change podcast, ODI Global)