Development Finance in Practice
Cardano Development has successfully established initiatives and funds that develop and implement financial risk management tools in markets and for institutions that are not served by the market. We are driven by the ambition to reduce poverty levels by contributing to resilient financial systems in frontier market economies.
Financial systems in frontier economies do not change instantly. Their development is highly dependent on a complex set of macro-economic factors and an adequate regulatory regime, which contribute to a stable environment. By nature, the initiatives under Cardano Development operate in markets where these framework conditions are absent or not working effectively. Cardano Development brings more stability and resilience in a volatile world, where financial markets have to be strengthened. Economic well-being and financial stability helps to raise living standards. In addition, Cardano Development’s businesses operate on social and environmental principles.
We pursue our mission not only by making new financial risk management products available to our clients, but also by using our experience and making it available to others in order to assist in further development. However, our size is limited and it cannot solve the needs of all borrowers in developing economies. To bring about impact more broadly, we aim to act as a catalyst and demonstrate the benefits of using financial risk management products, so that its existence assists others to find solutions and achieving impact beyond its direct transactional capacity. Moreover, smart funding can spur financing from a diversified pool of investors. All our funds and initiatives aim to leverage public funds and private grants to generate enough capital to reach a scale so we can make a difference.
Cardano Development aims to be a results oriented, accountable and transparent organization. To understand how the initiatives under Cardano Development contribute to making frontier markets more resilient to shocks, we have developed theories of change for each of our business initiatives and regularly report on impact achievements in development reviews and case studies.
TCX: Theory of Change – Development Reviews – Case Study