Designing a dedicated financial platform to promote the integration of Israeli innovation in international development

Israel, due to its position as both a high-income country and a world leader in innovation, has an enormous contribution potential to technological and financial innovation for SDG implementation, as well as to the development of low-and middle-income countries, where demand is particularly great while supply is particularly limited. However, much of this potential remains unrealized, and a significant obstacle is the lack of dedicated financing and business development solutions. This research paper proposes a design for a financial platform seeking to increase Israeli private sector involvement in international development ,similar in concept to the development finance institutions (DFIs) established by sixteen other OECD members. The platform’s design will balance three goals: 1)achieving substantial development impact in developing countries, 2)promoting Israeli private sector activity in developing countries, and 3)creating a financially sustainable platform offering returns to investors, stakeholders, and beneficiaries. The platform will seek to leverage its public and philanthropic funding to attract as much private capital as possible into its investments, and create long-term partnerships in target markets and in the international development ecosystem worldwide, using both long-standing DFI best practices, and innovative financial instruments whose potential has been increasingly recognized in recent years. By offering a comprehensive solution to the obstacles currently preventing supply from matching demand in developing countries, the platform proposed in this paper has the potential to achieve large-scale development impact across the world and break access barriers to some of the fastest-growing markets in the world. In doing so, it would also greatly contribute to Israel’s own economic growth, diplomatic standing ,and commercial opportunities, as well as solidifying Israel’s status as a global pioneer in SDG innovation

Tomer Yafeh
A 2022-2023 fellow, interning at the Milken Innovation Center, specializing in international development. Tomer holds a B.A. in the Integrative Program in Philosophy, Political Science and Economics (PPE) from the Hebrew University of Jerusalem. He is currently an M.A. student...
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