5 Key Insights for Israeli Companies Seeking Partnerships with Development Finance Institutions (DFIs)

Last week, in partnership with SID Israel,  we’ve hosted the first meeting of our new forum, for  Israeli private sector executives engaged in international development.

At the event, an eye-opening panel discussion took place with:

🎤 Maya Elnathan – Head of Development Banks at the Israeli Ministry of Finance

🎤 Hagai Mei-Zahav – Cybersecurity and Digitalization Expert at the World Bank

🎤 Dganit Vered – Investor, and Advisory board member for NOF - Natural Offset Farming (IFC - International Finance Corporation TechEmerge Cooling Grantee) 

Check out David Mendelbaum’s key insights from the panel:

1️⃣ Build Local Connections

To explore eligibility and gain access to Development Finance Institutions funded projects, engage with country representatives to understand sectoral priorities and planned projects. You can reach out to Israeli trade missions and economic attachés for local support. Working with local governments—which in many cases receive and manage DFI and World Bank funds—may be crucial. This may present challenges related to initial accessibility to local officials, pace of work, and even cultural differences. Navigating these complexities is crucial for successfully engaging in funded initiatives.

2️⃣ Map Key Stakeholders in Your Target Market

Engaging directly with the DFI is not enough to be eligible for DFI funding. Companies should also have an initial understanding of key stakeholders within the value chain in the target geographies. There is a lot of available open information online on DFIs websites on the priorities and plans for each country and project. 

3️⃣ Explore call for proposals, grant opportunities and non-dilutive funding

While the majority of DFIs funding comes in the form of loans or donations for LMICs government projects, there are also unique investment and grant opportunities around key areas, such as the IFC TechEmerge Program. These programs targeted key sectors and priority areas and offer a unique foot in the door that is more suitable for tech startups. 

4️⃣ Strategic Partnerships & Consortia Are Key

Securing funding often requires forming multi-sector consortia, aligning with public and private partners, and ensuring co-funding sources for project implementation. Look out for existing consortiums or serial contract winners. Partnering with them could be your gateway.

5️⃣ Be Prepared for Unique Funding Requirements

Before submitting a proposal, during execution, and even post-project, companies must align with DFIs' specific requirements, including:

 Co-funding & Matching Investment

 Detailed Reporting & Milestones

 Strategic Data Collection 

World Bank and other DFIs may prefer, similarly to venture capital—investing gradually based on trust building, project outcomes and technological deployment. Companies seeking funding must proactively build relationships and demonstrate market commitment.

https://www.linkedin.com/feed/update/urn:li:activity:7311035621949530112