Canada is one of the nations leading the way in attempting the achieve the U.N.’s Sustainable Development Goals. Canada has been at the forefront of a number of initiatives that have proven the ability of blended finance to make new solutions to development issues possible, working with the private sector to maximize resources, talent and innovation, creating new and more effective products, services and technology to improve the lives of people in poverty.
To address these financing gaps, Canada announced plans to establish a Canadian Development Finance Initiative. The Canadian DFI will provide financing to private firms and foundations for commercial projects in low- and middle-income countries that have development outcomes, but cannot find private sector financing. The Canadian government is also working to improve another important source of private money that goes to developing countries through remittances. According to the World Bank, Canada is one of the top countries in the world for people sending money to their families overseas. Remittances are an important source of income for families to pay for essential needs such as food, education and health care.
In partnership with the World Economic Forum and Dalberg Global Development Advisors, Canada recently announced the Global Finance Exchange for Social Advancement. GFX will be an online marketplace, knowledge broker and accelerator for innovative development finance models. Done right, it will help leverage new sources of financing, turning billions into trillions, and significantly contribute to ending global poverty.
In addition, Canada has been working with a number of partners to build a new financing platform called Convergence, designed to bring together public and private investors for blended finance investments. It will facilitate the blending of private, public and philanthropic capital to reduce poverty and serve as a marketplace, knowledge broker and accelerator for innovative development finance models.
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