Research & Peer Review

On behalf of KfW, we conducted a peer review to compile and analyse lessons learnt from policy-based financing (PBF) operations of five development banks: AfDB, ADB, AFD, IDB, and the World Bank. The review focused on the sectoral and thematic orientation of PBF portfolios, the types of reforms supported, and the design of disbursement triggers.
Our work included a quantitative portfolio analysis, examination of policy matrices, and interviews with representatives of the peer institutions. Findings were synthesised into a comprehensive report and presentation, outlining global trends and lessons for KfW’s own engagement in policy-based financing.

To support the expansion of its financial instruments, KfW commissioned a study on results-based financing (RBF) policies and practices of bi- and multilateral development partners. The study examined institutional contexts, design features, appraisal mechanisms, and lessons learnt from existing RBF approaches, where payments are contingent upon verified results rather than inputs or activities.

Our work included analysing donor experiences and guidelines, mapping funders of RBF projects, and compiling findings into a report. The study provided KfW with a structured overview of existing approaches and operational practices to inform future application of results-based financing.

You can read the study here.