 mobilised $2.9 billion in private capital in 2025, reinforcing its role){kind=link}
The Private Infrastructure Development Group (PIDG) mobilised $2.9 billion in private capital in 2025, reinforcing its role as one of the leading blended finance institutions channeling investment into infrastructure across emerging and frontier markets.
The group said it committed $1 billion across 33 infrastructure projects during the year, contributing to a total investment volume of $4.1 billion. The projects are expected to expand access to essential infrastructure for approximately 8 million people.
The latest figures were released ahead of London Climate Action Week as part of PIDG’s Sustainability and Impact Report 2025, highlighting continued momentum in using concessional capital to de-risk investments and attract private sector participation in underserved markets.
Blended finance driving private investment
PIDG’s model combines concessional and catalytic capital with private investment, a structure that has become increasingly central to financing infrastructure in low-income and fragile states. The group’s 2025 results show that each dollar committed helped mobilise nearly three dollars in private capital.
Since inception in 2002, PIDG has supported 286 projects reaching financial close, with 75% located in least developed countries, low-income countries, and fragile and conflict-affected states. Over that period, it has mobilised $32.7 billion in private capital and delivered $51.4 billion in total infrastructure investment.
The group said its approach continues to demonstrate that structured risk-sharing can unlock long-term institutional capital in markets that remain underfunded despite significant infrastructure demand.
Focus on climate-linked infrastructure
Climate-related investments remained a key priority in 2025, with PIDG supporting projects in renewable energy, electric mobility, sustainable aviation fuel, and climate-resilient infrastructure.
These investments reflect a broader shift among development finance institutions toward climate-aligned infrastructure, particularly in regions where energy transition and basic infrastructure expansion are converging.
PIDG said its portfolio continues to demonstrate that frontier markets can support scalable decarbonisation projects when supported by appropriate financial structuring and risk mitigation tools.
Gender-lens investing expands
The group also reported that 85% of its 2025 investments met gender targets, marking a 56% increase from the previous year. PIDG said the result reflects the growing integration of gender considerations into infrastructure financing decisions.
The organisation formalised this approach through the launch of its first Gender Lens Investing Policy, which embeds gender outcomes across the investment lifecycle.
One example cited was PIDG’s guarantee support for First Finance in Cambodia, where a $16 million payment default guarantee enabled expanded access to affordable housing finance expected to benefit approximately 6,500 people, 90% of whom are women.
Key projects across sectors and regions
Among the transactions closed in 2025 were several projects aimed at expanding access to energy, transport, and essential services:
- A sustainable aviation fuel facility in Pakistan, supporting industrial-scale decarbonisation using waste feedstocks
- The Programme Electricité Pour Tous (PEPT) in Côte d’Ivoire, expanding affordable electricity access for low-income households
- LOCA in Laos, supporting the country’s first nationwide electric vehicle charging network and ride-hailing ecosystem
- Sanivation in Kenya, developing sanitation infrastructure that converts human waste into clean fuel
These projects reflect PIDG’s continued focus on markets and sectors often considered too risky or commercially unviable for traditional investors.
Mobilising global and domestic capital
Beyond direct investments, PIDG highlighted ongoing partnerships aimed at improving investment conditions in emerging markets.
These include work with the University of Oxford on PCRAM 2.0, a methodology designed to assess climate resilience in infrastructure investments, and the Urban Resilience Fund in partnership with Meridiam, focused on sustainable urban development in African cities.
The group is also participating in initiatives such as the UK government-led Emerging Markets and Developing Economies (EMDE) Investor Taskforce and the Hamburg Data Alliance, aimed at improving data transparency and investor confidence in developing economies.
PIDG said its collaboration with the African Development Bank is focused on unlocking more than $2 trillion in potential domestic African capital through de-risking and credit enhancement mechanisms.
Outlook
As PIDG marks its 25th anniversary, the group said its long-term objective remains expanding the flow of private capital into infrastructure markets where financing gaps remain significant.
“Private capital can be mobilised in the world’s most challenging markets by deploying blended finance solutions and de-risking instruments,” said PIDG CEO Philippe Valahu. “Our 2025 results show that infrastructure investment can drive climate action, expand opportunity, and deliver lasting economic growth.”