The Scope, Role and Impact of Publicly Supported Private Finance on Development and Poverty Reduction in Africa: The Case of Rwanda and Zambia

"The research reviewed and analysed the scope, role and impact of Publicly Supported Private Finance (PSPF) provided by Development Financial Institutions (DFIs) and bilateral donors to the private sector and their contribution to development and poverty reduction in Rwanda and Zambia. It also explored the instruments that are used in PSPF investments in the two countries. The study covers the period from 2000 to 2013 which saw the dramatic rise in PSPF investments from DFIs to developing countries in Africa. The study found out that in both countries (Rwanda and Zambia) there has been PSPF development reforms as well as regulatory and institutional reforms over the period with a number of policies and laws being passed. The study also found out that the same donors have made varying investments in both countries and the same instruments have been used to deliver PSPF. Major instruments used are loans, equity, grants and financial intermediaries. It was noted that both countries do not have a PSPF framework or principles and guidelines that govern PSPF investments."