Additionality as a Catalyst for Change: Insights from Evaluation

The concept of additionality lies at the heart of the mandate of Multilateral Development Banks (MDBs), defining the distinct value they bring to development finance in contrast to purely commercial actors. Originally centred on financial interventions—such as filling market gaps or mobilizing private capital—additionality has evolved into a broader, more nuanced construct encompassing institutional, policy, and environmental dimensions. As MDBs scale up their support for sustainable development, additionality continues to serve as a foundational principle, rooted in the idea that their engagement should contribute beyond what the market provides and avoid displacing private sector actors. This paper builds on that foundation, reflecting both the enduring relevance of additionality and the recent conceptual refinements across the MDB system.

This edition of the "Connecting the Dots" (CtDs) series synthesizes evidence from recent evaluations published since 2018 across MDBs, including EBRD, the Asian Development Bank (ADB), the International Finance Corporation (IFC), African Development Bank (AfDB) and the European Investment Bank (EIB), among others. Drawing from 86 evaluation reports, it provides a nuanced understanding of how MDBs experience additionality, and how it manifests across diverse markets and sectors. It does this in the form of 13 key insights.