Data and transparency are pivotal drivers of private finance mobilisation and development, writes Gary Forster
In the quest to achieve the Sustainable Development Goals (SDGs), emerging markets and developing economies (EMDEs) face a significant financing gap.
Public funds alone are insufficient to meet these needs, making the mobilisation of private capital essential.
Central to attracting this private investment is the availability of transparent, disaggregated data. Publish What You Fund (PWYF) has been at the forefront of advocating for enhanced transparency to drive investments into EMDEs.
The imperative for data and transparency
Transparency serves as a cornerstone for informed investment decisions. When data on financial flows, project impacts, and credit performances are readily accessible, private investors gain the confidence needed to engage in markets that might otherwise seem opaque or risky. A study by the International Monetary Fund highlighted that greater data transparency leads to a 15% reduction in the spreads on emerging market government bonds, effectively lowering borrowing costs for these nations.
However, current practices among multilateral development banks (MDBs) and development finance institutions (DFIs) often fall short of providing the necessary level of detailed information. Aggregated data, while useful for broad analyses, fails to offer insights into specific projects, sectors, or instruments that are most effective in mobilising private capital. This lack of granularity hampers stakeholders' ability to assess what works and what doesn't, thereby stymieing potential investments.
This issue was further underscored at the OECD in the Community of Practice on Private Finance for Sustainable Development (CoP-PF4SD) Conference 2025 in February, where transparency was a recurring theme across nearly every session. I spoke in a panel discussion on data and transparency, which also leveraged the work of the Hamburg Data Alliance: a multi-stakeholder process which aims to improve the quality, availability and accessibility of data to help investors be better informed about the risks and opportunities in EMDEs. During the discussion, we heard explicitly from major institutional investors and credit rating agencies about the critical role of transparency. They affirmed that enhanced transparency could unlock significant investment and stressed their need to see more data disclosure from both multilateral and bilateral development banks.
Publish What You Fund's advocacy for enhanced transparency
Recognising these challenges, Publish What You Fund (PWYF) has undertaken several initiatives to bridge the data gaps obstructing private finance mobilisation:
- Enhancing Private Capital Mobilisation Data: PWYF has worked to improve the transparency of private capital mobilisation (PCM) by advocating for more disaggregated data from MDBs and DFIs. This includes improving the measurement and reporting of PCM, identifying best practices, and pushing for the disclosure of key details such as project-specific data, financial instruments used, and development impacts. These efforts help investors understand which approaches are most effective and encourage replication and scaling of successful models.
"A study by the International Monetary Fund highlighted that greater data transparency leads to a 15% reduction in the spreads on emerging market government bonds, effectively lowering borrowing costs for these nations"
- The DFI Transparency Index: PWYF's DFI Transparency Index provides a comprehensive framework for assessing and improving the transparency of MDB and DFI activities and impacts. The Index evaluates financial institutions on critical areas such as project disclosure, impact reporting, and financial information, offering a roadmap for institutions to enhance their transparency practices. By setting a benchmark for disclosure, the Index helps investors, policymakers, and stakeholders make informed decisions about development finance.
The path forward
For EMDEs to attract the necessary private capital, a paradigm shift towards greater transparency of development finance providers is imperative. By embracing transparency, MDBs and DFIs can create an environment conducive to private investment, thereby accelerating progress towards the SDGs. Publish What You Fund's relentless advocacy and practical recommendations serve as a roadmap for institutions aiming to enhance their transparency and, in turn, their developmental impact.
Data and transparency are not mere administrative concerns; they are pivotal drivers of investment and development. As EMDEs strive to bridge their financing gaps, the role of transparent, accessible, and detailed data cannot be overstated. The CoP-PF4SD Conference 2025 reinforced that institutional investors and credit rating agencies stand ready to engage—provided they have the information they need. Through concerted efforts and collaborative action, the global community can unlock the potential of private capital to foster sustainable and inclusive growth in the world's most vulnerable regions.
Gary Forster is Chief Executive of Publish What You Fund.
