The term additionality captures a clear and simple premise: interventions by multilateral development banks (MDBs) to support private sector operations should make a contribution beyond what is available in the market and should not crowd out the private sector. While the premise is clear, determining the presence of additionality is more complex because of the dynamic nature of markets, the multiple factors that affect private sector behaviour and decision-making, and the diverse ways in which MDBs engage with markets and private sector actors, and the goals of those engagements.
MDBs formed a Task Force to look at and build on existing shared principles, such as the 2012 MDB Principles to Support Sustainable Private Sector Operations, in which additionality is the first principle. This report summarizes the efforts of MDBs to develop (i) more detail on the principle of additionality; (ii) common definitions; (iii) guidance on a common approach to the governance of additionality; and (iv) guidance on types of evidence that help demonstrate the presence of additionality.
