USAID’s dismantling will create significant funding gaps and challenging efforts to mobilise private capital for global development. According to Elizabeth Boggs Davidsen, CEO, GSG Impact, this decision will have far-reaching consequences:

“Dismantling USAID is going to create significant funding gaps, and it's just going to make it harder for us to mobilize private capital and achieve impact at scale.”

For years, USAID has played a crucial role in de-risking investments, fostering local financial markets, and collaborating with development finance institutions (DFIs) such as the World Bank, IFC, and DFC. However, its absence threatens to disrupt coordinated investment strategies, particularly in frontier markets, increasing pressure on multilateral development banks (MDBs), private investors, and philanthropy to fill the void.

2025: A defining year for impact finance.

This year is set to be defining for global development finance. The Fourth International Conference on Financing for Development (June 30 - July 3, Seville, Spain) will shape the future of financing solutions for impact. “The agreements that emerge set the foundation for a lot of international cooperation on financing for development” said Boggs Davidsen.

This forum will address pressing global challenges, from the debt crisis to climate finance, and define the role of private capital in development.

Read the full article about development finance trends to watch in 2025.