The Asian Development Bank (ADB) has pledged to increase the focus of its private sector operations on developing and ‘sometimes risker’ markets over the next five years.
The bank has approved its Operational Plan for Private Sector Operations with the aim to address climate change and support women.
For instance, ADB will increase private sector funding on clean energy, environmental infrastructure such as waste management, low-carbon transport, accessible information and communications technologies, agribusiness, quality education, health services, a vibrant financial sector and to support the incubation of cutting-edge technologies for the region.
The ADB will match every $1.00 in financing for its private sector operations with $2.50 of long-term co-financing by 2030.
Mike Barrow, Director General of ADB’s Private Sector Operations, said: “We will champion new products, financing structures, and companies, and expand our work in emerging sectors such as agribusiness, education, and health while sharpening our already substantial focus on addressing climate change. We will redouble our efforts in countries facing unique development challenges like those in fragile and conflict-affected situations and small island developing states and will focus heavily on investments that benefit women.
“ADB will prioritise development impact and pursue the quality of investments over volume while managing risk effectively.
“This is vital in our renewed focus on the region’s most vulnerable countries, where smaller and perhaps riskier projects in areas like tourism or agribusiness can have an outsized development impact.”