Toward Fit-for-Purpose DFI Regulation in the SADC Region

The Fourth International Conference on Financing for Development (FfD4) is spotlighting the critical role of National Public Development Banks (NDBs) in mobilizing domestic resources, crowding in private investment, and delivering on the Sustainable Development Goals (SDGs). The First Draft of the Outcome Document, which outlines a renewed financing framework and emphasizes the commitment to sustainable development through multilateral cooperation and funding sources, includes the importance of national development banks in the global architecture. Financing for Development Outcome Document (First Draft), paragraph 25(c) states:

“We commit to ensure our national regulatory requirements reflect national development banks’ development-focused mandates and distinctive business models and risk profiles, ensuring that development banks are empowered to pursue innovative and risk-informed approaches to financing sustainable development.”

However, the conference also recognises that regulatory misalignment remains a key barrier to fully leveraging their potential. Many NDBs are subject to commercial banking rules that constrain their ability to fulfil development mandates—particularly in high-risk or underserved sectors.

This policy brief responds to that call by examining how regulatory frameworks shape the operational space of national Development Finance Institutions (DFIs) in the Southern African Development Community (SADC) region. It complements and builds on the White Paper authored by Momentus Global and the World Federation of DFIs (WFDFI), called “National Development Banks: The Unsung Heroes of the Global Development Finance Architecture”. The White Paper advocates for greater recognition and support of NDBs as catalytic actors in development finance.

Developed for the SADC Development Finance Resource Centre (DFRC) CEO Forum (to take place in June 2025), this brief translates practitioner insights into concrete recommendations for reform. It aims to inform national and regional dialogue, support peer learning, and offer a pragmatic contribution to the global momentum around enabling frameworks for DFIs.

Dive into the report to discover our key recommendations for national DFIs, regulators and the SADC DFRC!