How MDBs and governments can help empower companies in emerging markets Governments and MDBs drive resilience in emerging markets by strengthening infrastructure, digitalization, skills, access to finance and reducing policy frictions.3 Chapters 1 and 2 outlined the magnitude of the structural shifts reshaping the global economy and the pressures facing emerging markets, emphasizing that long-term resilience cannot be achieved by firms alone. This chapter explores how governments and MDBs can act as catalysts by partnering with firms to unlock sustainable growth in emerging markets. Governments can facilitate stability and opportunity through forward-looking policies, while MDBs provide long-term financing, risk-sharing and technical expertise needed to translate ambition into impact. MDBs, in particular, play a central role in bridging the estimated $4 trillion annual financing gap needed to achieve the Sustainable Development Goals (SDGs). MDBs mobilize private capital and help stabilize economies during downturns,20 providing critical support where commercial investment remains limited. Their role is particularly vital in regions such as Africa, which attracts just 6% of global FDI – underscoring the need for targeted support.21 To address these disparities, different institutions within multilateral systems deploy tailored tools across geographies. Examples include the World Bank’s $93 billion International Development Association (IDA) replenishment (2022–2025),22 which provides concessional finance in low- income countries, while the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) help middle-income and frontier markets expand access to finance, attract private investments, and strengthen growth and resilience.23 Progress is already visible in many of these areas: emerging markets are piloting innovative financing models, leap-frogging through digital adoption, investing in regional infrastructure and expanding skills development programmes. MDBs are driving impact through the four key areas in the following ways: –Infrastructure and supply chains: Institutions such as the Inter-American Development Bank (IDB) are channelling resources into sustainable transport, as illustrated by the IDB’s $75 million rural road resilience loan,24 energy security and climate-resilient urban projects, often using innovative tools such as foreign exchange (FX) hedging and public-private partnerships. –Digitalization and skills: MDBs are accelerating transformation by coupling investment with workforce training – for example, the EBRD’s €377 million Go Digital programmes in the Western Balkans, supporting 750 SMEs,25 and the World Bank’s Identification for Development (ID4D) and Government-to-person (G2Px) initiatives targeting 550 million people with digital IDs and payments.26 –Closing financing gaps: MDBs are deploying capital through innovative instruments such as the IDB’s $20 billion climate finance and Amazonia Bonds ($1 billion),27 the EBRD’s Insurer Mobilisation Programme and on-lending frameworks, and the Islamic Development Bank’s (IsDB) Green Sukuk for renewables and food security.28 –Enabling policies for growth: By pairing investments with policy reforms, MDBs aim to ensure sustainability and scale through measures such as the EBRD’s Public-Private Partnerships Advisory Programme,29 and the World Bank’s Climate Change Action Plan and digital safeguards.30,31 Despite these advancements, challenges remain. This chapter explores how existing efforts can be expanded and partnerships deepened between companies, governments and MDBs. It does not suggest a one-size-fits-all solution. Instead, it outlines practical pathways that decision-makers can adapt to local contexts. MDBs help bridge the $4 trillion annual financing gap needed to achieve the Sustainable Development Goals. Resilient Firms and Economies 18

Resilient Firms and Economies 2025