The Private Infrastructure Development Group (PIDG) was established in 2002 to address challenges in delivering infrastructure projects across Africa, South, and Southeast Asia. Since its inception, PIDG has provided 232 million people with access to essential infrastructure, including renewable energy, safe transport, clean water, sanitation, digital connectivity, and climate-resilient food systems. Its work focuses on reducing real or perceived risks in projects, helping to attract private sector investment to markets where investors have traditionally been hesitant.
PIDG’s approach involves hands-on support for projects from conception to operation. For example, in Malawi, the organization co-developed the country’s first two commercial-scale solar plants by coordinating with the government, local communities, and financing partners. These 80MWac projects demonstrate the viability of on-grid solar power and have encouraged interest from other domestic and international investors. To de-risk investments, PIDG deploys technical assistance, project development, local currency guarantees, credit enhancements, and long-term debt solutions, either individually or in combination.
Blended finance is central to PIDG’s model, using development finance to mobilize private sector capital toward the UN Sustainable Development Goals. By tailoring risk to investor appetite and integrating gender, climate, and environmental considerations, PIDG ensures that projects promote inclusivity, climate resilience, and sustainable development. The organization also helps businesses maintain high standards in health, safety, environmental management, social responsibility, and business integrity to attract further private investment.
PIDG is funded primarily by six DAC donor governments—UK, Netherlands, Switzerland, Australia, Sweden, and Canada—but operates as a private company with these governments as shareholders. Its mandate requires mobilizing private finance alongside public funding, allowing PIDG to invest in commercially viable infrastructure projects while de-risking them for additional private investors. The organization has leveraged over USD 29.8 billion in private sector finance, generating USD 4.70 for every USD 1 of owner funding. Its financing model also includes long-term debt solutions, such as the Emerging Africa & Asia Infrastructure Fund (EAAIF), which has raised hundreds of millions from development banks, institutional investors, and private financiers.
PIDG collaborates widely to deliver sustainable infrastructure. Partnerships with governments, developers, banks, insurers, asset managers, grant bodies, NGOs, philanthropies, and multilateral development banks enable the organization to structure projects and financing that meet national priorities. PIDG also establishes domestic credit enhancement facilities to attract local investors, creating pipelines for infrastructure projects in countries like Nigeria, Kenya, Pakistan, and Cambodia. By improving transparency and standardizing risk-return data, PIDG encourages private sector participation in emerging markets and developing economies.
The organization applies its approach across the project lifecycle, from early-stage design to operational support. Examples include Aqua One, a rural water treatment plant in Viet Nam improving access to clean water, and Acorn in Nairobi, providing green, affordable student housing through innovative financing like green bonds and REITs. PIDG’s support has enabled these projects to attract additional investment, expand their impact, and deliver tangible social and economic benefits to local communities.
Lessons from PIDG’s work emphasize patience, persistence, and creative adaptation to local market conditions. Leveraging existing blended finance models, sharing expertise internally, and forming strong partnerships are critical to mobilizing private capital in sectors traditionally considered high-risk. By nurturing partnerships aligned with values such as climate action, nature preservation, and inclusive development, PIDG demonstrates how collaboration, innovation, and strategic financing can scale sustainable infrastructure in challenging environments.
