Transforming Development Finance for a Just Future

Developing countries face immense challenges in securing finance for development. Global geopolitical tensions, debt distress, and high capital costs make financing difficult. The climate crisis, which demands urgent investment and strong political will, further compounds these issues. Meanwhile, limited government revenue constrains public spending, heightening the need for sustainable financing solutions.

The Institute for Economic Justice (IEJ) is actively working to reorient development finance towards equity, sustainability, and justice. Through research and advocacy, the IEJ engages with international financial institutions (IFIs), multilateral development banks, and policymakers to promote increased and accountable financing for economic development and a just transition.

A Nationally Owned Approach to Development Finance

Despite fiscal constraints, the IEJ advocates for a nationally determined development finance strategy, emphasizing:

  • Strengthening public development banks to finance key sectors.
  • Ensuring democratic oversight and accountability of IFI loans.
  • Leveraging central banks and development finance institutions for strategic lending.

A key area of work has been scrutinizing IFI lending in South Africa. The IEJ has urged Parliament to implement a legal framework for loan transparency and oversight, ensuring that borrowing aligns with democratic principles and human rights.

Climate Finance and Just Energy Transition

The IEJ has conducted in-depth research into South Africa’s Just Energy Transition Partnership (JET-P). Our analysis calls for:

  • Fair risk-sharing between the state and private financiers.
  • Ensuring public-private partnerships (PPPs) do not prioritize profit over public good.
  • Expanding fiscal and monetary policy tools to scale up clean energy investment.

Debt, Development, and Global Economic Justice

The IEJ highlights the intersection between debt distress and development finance. Our upcoming research proposes solutions to sovereign debt challenges, advocating for concessional loans and a human-rights-based approach to debt restructuring.

The IEJ is working towards a more just, inclusive, and sustainable economic future by reshaping development finance.