The African Development Bank and other Multilateral Development Banks (MDBs) have published a harmonized framework for assessing additionality in their respective private sector operations.
The new framework supports the MDBs' ongoing commitment towards achieving the UN Sustainable Development Goals (SDGs) and the 'Billions to Trillions' agenda.
The concept of additionality captures the clear and simple premise that MDBs should make a contribution beyond what is available in the market and not crowd out the private sector. Already an accepted concept, additionality is one of five common principles endorsed by MDBs in 2012 to guide their engagement with the private sector to achieve development goals, as defined in the Multilateral Development Bank Principles to Support Sustainable Private Sector Operations. These principles were also reinforced in the 2013 DFI Guidance for Using Investment Concessional Finance in Private Sector Operations and the 2017 Enhanced Principles for Blended Finance.
The Multilateral Development Banks' Harmonized Framework for Additionality in Private Sector Operations provides concrete guidance on the application of the additionality principle. It develops and articulates more detail on the principle of additionality, presents common definitions for financial and non-financial additionality, prescribes guidance on a common approach to the governance of additionality, and provides examples of types of evidence that help demonstrate the presence of additionality.
While recognizing the assessment of additionality is context‑specific for each project within the boundaries of each MDB's mandate, a harmonized approach allows for a more effective and efficient conversation with shareholders on where and how to intervene. This will ensure that MDBs' resources are used in the most catalytic manner possible and that they are directed where they are most needed, ultimately supporting the delivery of the 2030 Agenda for Sustainable Development.
For further information on the 2018 harmonized framework for additionality, please contact:
Laura Sennett, Senior Officer, Multilateral Affairs Coordination, l.sennett@afdb.org
Lesley Bearman Lahm, Head, Interagency and Nonsovereign Operations Unit, llahm@adb.org
Bin Wang, Senior Officer, Strategy, Policy and Budget Department, bwang@aiib.org
Caroline Pearce, Principal, Corporate Strategy, PearceC@ebrd.com
Kristina Mikulova, Policy Advisor, Institutional Strategy, k.mikulova@eib.org
Viviane Azevedo, Economist & Development Effectiveness Officer, Strategy & Development Department, vivianea@iadb.org
Deborah Feigenbaum, Lead, MDB/IFI Coordination, dfeigenbaum@ifc.org
Ibrahima Thierno Lo, Principal, Monitoring and Evaluation, IThiernoLo@isdb.org
