Résumé
This Handbook for Strengthening African DFIs for Climate-Resilient Development was developed in recognition of the growing demand for practical tools and shared frameworks that can support DFIs on this journey The twin imperatives of accelerating development and responding to the escalating impacts of climate change demand bold, coordinated action across all sectors of society. DFIs are uniquely positioned to respond to this challenge. With their public mandates, proximity to national priorities, and growing track record in infrastructure and enterprise finance, DFIs shape a development model that is suited to the African context, adapted and nuanced to respond to regional and country differences.
The handbook and its diagnostic framework adopt a dynamic approach, providing a structured method to assess institutional readiness, unlock climate finance, and strengthen internal systems in line with national development goals and global climate commitments. Crucially, this dynamic orientation is designed to surface and navigate the interplay between the two aims above, which may at times diverge, so that DFIs can iteratively reconcile priorities in practice.
It also presents a practical Investment Readiness Scorecard and a comprehensive directory of capacity-building partners to support implementation.
The handbook is not intended to be prescriptive; it recognises the diversity of DFI mandates, governance structures, and operating environments across the continent.
It is a flexible, living resource, designed for sharing and to be refined through shared learning and members’ contributions. It supports institution-specific reform journeys, whether to improve internal systems, prepare for accreditation, strengthen partnerships, or deepen alignment with national climate strategies.
This handbook is the product of a collaborative effort, led by the Centre for Sustainability Transitions (CST) at Stellenbosch University, in close partnership with the AADFI and other regional and international allies. It is offered as a contribution to the ongoing work of building stronger, more responsive DFIs that are essential to realising Africa’s vision for sustainable, climate-resilient development.
Objectives of the Guideline Handbook
● To provide a structured, Africa-focused framework for assessing institutional readiness for climate finance.
● To equip DFIs with practical tools to strengthen governance, strategy, technical capacity, and project preparation systems.
● To support DFIs in aligning their operations with global standards.
● To promote shared learning and benchmarking through the Investment Readiness Scorecard.
● To catalyse partnerships, capacity-building, and spark policy dialogue that enhances the role of DFIs in financing Africa’s Just Transition.
Roadmap of the Handbook
This handbook is organised into seven interconnected chapters:
● Chapter 1 introduces the core features, historical evolution, and typologies of African DFIs, highlighting their strategic importance in financing inclusive, climate-resilient development. It explores how DFIs are aligning their mandates with global agendas, including the SDGs, the Paris Agreement, and Agenda 2063.
● Chapter 2 presents four in-depth case studies drawn from African DFIs, offering grounded insights into how these institutions are adopting innovative approaches to mobilise climate finance, enhance governance, and improve institutional performance. Each case illustrates successes, challenges, and lessons learned that can inform adaptation, replication, and reform efforts across the continent. To ensure analytical focus and encourage open reflection, the names of the countries and DFIs have been anonymised.
● Chapter 3 outlines the dimensions of institutional capacity and climate readiness. It also identifies common barriers such as undercapitalisation, policy misalignment, and weak risk management systems.
● Chapter 4 introduces the DFI Investment Readiness Scorecard, which is a practical, Africa-focused diagnostic tool designed to help DFIs assess their capacity and track institutional progress. The chapter explains how to apply the tool, interpret results, and integrate findings into strategic planning processes. It also includes a readiness scale and a fictional example to illustrate how the tool can guide reform.
● Chapter 5 presents strategies to strengthen DFI capacity in areas where institutional gaps are most pronounced. It emphasises the importance of human capital investment, digital monitoring and evaluation systems, dedicated project preparation units, and innovative resource mobilisation instruments such as blended finance, guarantees, and performance-based grants.
● Chapter 6 explores opportunities to scale DFI readiness through peer learning, structured collaboration, and global engagement. It examines how African DFIs can leverage regional platforms like AADFI, AUDA-NEPAD, and AfGIIB, as well as global initiatives such as the Finance in Common Summit (FiCS) and the International Development Finance Club (IDFC). It also identifies key research gaps related to gender-responsive finance, subnational DFIs, and digital infrastructure for climate tracking.
● Chapter 7 offers a curated directory of regional and international partners that can support DFI reform and finance mobilisation. It includes DFIs, multilateral funds, technical agencies, and capacity-building platforms that provide advisory services, technical assistance, and co-financing to African DFIs.
Drawing on the concept of tilting the playing field (Mazzucato, 2016), the handbook advances a more strategic vision of development finance, one that moves beyond passive market correction and instead positions DFIs to actively shape markets and direct investment toward transformative societal objectives.