Beyond the Usual Suspects: Development Banks and Cooperation Agencies as Land Finance Catalysts

Development banks and international cooperation agencies have become pivotal players in the global effort to secure land tenure and improve land administration.

In the context of declining bilateral aid from traditional donors, especially the U.S., the strategic role of multilateral development banks (MDBs) and institutions like the EU, GIZ, and FCDO (formerly DFID) is expanding. Their mandates, scale, and capacity to mobilize large volumes of finance position them as essential allies for land sector transformation.

This article examines how these actors shape funding landscapes, support tenure security, and engage with civil society and governments to create long-term, scalable solutions — even amidst global financial uncertainty.

1. The Development Bank Advantage

Institutions like the World Bank, African Development Bank (AfDB), Asian Development Bank (ADB), and Inter-American Development Bank (IDB) wield substantial influence through concessional loans, grants, and technical support. They have funded large-scale land administration and titling programs in countries such as Rwanda, Vietnam, and Peru. These initiatives often include cadastral surveys, legal reforms, and digital registry systems.

MDBs also bring legitimacy and leverage — helping countries co-finance land reforms with national budgets and signaling project readiness to private investors. Their ability to bundle land with infrastructure, housing, or climate projects has proven effective in mainstreaming tenure issues.

2. Key Models and Approaches

The World Bank’s ‘Land Administration and Management Projects’ (LAMP) framework has served as a blueprint in several regions. These programs integrate land tenure regularization with capacity building, grievance mechanisms, and institutional reform. AfDB has invested in rural land certification under its Feed Africa and gender equity pillars.

Another key approach is results-based financing, in which disbursements are tied to measurable outcomes such as the number of parcels registered, gender-disaggregated ownership data, or digitised property records.

3. Leveraging Blended Finance and Guarantee Instruments

Blended finance — the strategic use of development finance to mobilize private capital — has gained traction in land-related projects. Development banks now combine concessional loans with grants, technical assistance, and guarantees to de-risk investments in land tenure systems, especially in fragile or post-conflict settings.

For instance, the IDB has deployed guarantees to enable land titling projects in Colombia’s conflict-affected areas, while the ADB has tested output-based aid models to improve land transparency in urbanising regions of Southeast Asia.

4. Aligning Land with Climate and Infrastructure Agendas

Development cooperation actors are increasingly positioning land as foundational to broader agendas such as climate adaptation, sustainable urbanization, and disaster risk reduction. The World Bank’s Climate Resilience and Green Growth initiatives, for example, incorporate land use planning, informal settlement regularisation, and nature-based solutions in countries like Bangladesh and Mozambique.

Land tenure security is being linked with the infrastructure pipeline — especially in urban and peri-urban areas where displacement and compensation issues arise. MDBs now recognize that tenure clarity improves investment efficiency and safeguards community rights.

5. Case Study: The European Union’s Land Governance Support

The EU’s ‘Land Governance Programme’ across Africa, Latin America, and Asia exemplifies how thematic support and political dialogue can influence reforms. Through budget support, policy advice, and strategic partnerships with NGOs and regional entities, the EU has championed land policies aligned with the Voluntary Guidelines.

In countries like Burkina Faso and Laos, the EU supported multi-stakeholder platforms for land reform. In Kenya, EU funding enabled the development of the National Land Information Management System (NLIMS), which integrates tenure, spatial, and registry data.

6. Recommendations for Future Engagement

• Encourage MDBs to create dedicated land investment windows within climate, urban, and agricultural portfolios

• Incentivize multi-stakeholder implementation models with government, CSO, and private sector collaboration

• Expand results-based financing and pilot cross-sectoral demonstration projects

• Promote adaptive, culturally-sensitive models that protect communal and indigenous tenure systems

• Build knowledge platforms to share lessons and failures in financing tenure systems

With growing awareness of the foundational role of land, development banks and cooperation agencies must embed land tenure into strategic planning and resource allocation. Long-term success hinges on alignment, accountability, and community engagement.