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Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 27

ACHIEVEMENTS OF ADDITIONALITIES

The foundation of EXIM Bank’s development mandate lies in its commitment to achieving specific
additionalities outlined in the Performance Measurement Framework (PMF). These additionalities
typically encompass economic, social and environmental aspects. Key metrics under scrutiny include
job creation, poverty alleviation, environmental sustainability and overall economic growth.
A comprehensive evaluation of the achievements in these areas provides insights into the Bank’s
effectiveness in fulfilling its developmental mandate.

FINANCIAL ADDITIONALITIES: DEMONSTRATION ADDITIONALITIES:
Project Impact and Sustainability: Demonstration metrics
Export Facilitation and Growth
evaluate the impact of projects supported by the Bank on
the ground. This includes measuring the social, economic
One of the primary financial additionalities is the Bank’s role in and environmental outcomes of funded projects. Metrics may
facilitating exports and contributing to export growth. Metrics include the number of jobs created, poverty alleviation rates,
such as the volume and value of supported exports, expansion environmental sustainability indicators and the long-term
of export markets and increased export competitiveness are viability of the projects. EXIM Bank’s success in demonstrating
essential indicators. The Bank’s success can be measured by positive impacts through its funded projects is crucial for
its ability to provide financial instruments, trade financing showcasing the tangible benefits of its developmental initiatives.
and credit facilities that empower businesses to explore new
markets and enhance their global reach.
Enablers for Developmental Impact
Financial Inclusion and SME Support
The pursuit of developmental impact requires strategic
enablers that go beyond routine banking operations. EXIM
Another financial dimension is the Bank’s contribution to Bank focuses on identifying and implementing enablers
financial inclusion and support for Small and Medium Enterprises that maximise its impact on development. These enablers
(SMEs). The number of SMEs receiving financial assistance, span various dimensions, including infrastructure, product
the impact on their growth and the overall improvement innovation, strategic initiatives and process optimisation.
in financial inclusion metrics are key indicators. The Bank’s For instance, strategic alliances and streamlined operational
initiatives in offering tailored financial products and services processes are crucial components that enhance the Bank’s
to SMEs contribute significantly to inclusive economic developmental impact.
development.
Adequacy of DFIs’ Ecosystem

The success of EXIM Bank’s developmental mandate is
closely tied to the overall adequacy of the DFI ecosystem.
DESIGN ADDITIONALITIES: This ecosystem includes regulatory frameworks, collaborative
partnerships and the broader economic environment.
A supportive regulatory environment ensures that DFIs can
Risk Mitigation Strategies
operate effectively and implement policies aligned with
national developmental objectives. Collaborative partnerships
Design metrics also encompass risk mitigation strategies with government agencies, non-governmental organisations
implemented by the Bank. This involves assessing the and international bodies further strengthen the Bank’s ability
effectiveness of risk management practices, credit guarantee to address complex developmental challenges. The broader
schemes and insurance mechanisms. Metrics such as the economic environment, encompassing factors like political
reduction in default rates, successful risk-sharing initiatives stability and market conditions, also influences the Bank’s
and the overall improvement in the creditworthiness of capacity to pursue developmental objectives.
borrowers provide insights into the Bank’s capacity to design
and implement robust financial solutions.