Commercial finance for development: a back door for financialisation

SUMMARYThe global Covid-19 pandemic has accelerated a trend under way for the last decade: enlistment of private-sector commercial finance development. This can be brought in through (1) regular cross-border flows, (2) blended and (3) impact bonds. briefing argues that intensified foreign financial inflows are likely to draw African economies further into financialisation, which increases instability undermine democratic process, jeopardising just socio-economic Specifically, short-termism portfolio flows requires costly reserve accumulation, direct investment exposes firms demands shareholder value generation, external debt introduces exchange rate risk domestic borrowers.