What are the Harmonized Indicators for Private Sector Operations?
The Harmonized Indicators for Private Sector Operations are the result of an effort to standardize the criteria that Development Finance Institutions use to assess the impact of their work with private sector clients. These criteria are measured via a system of indicators, and collected via reports that most DIFc require of their clients.
How does it help the private sector?
Many private sector entities receive financing from multiple DFIs. As a result, they are often required to report on their activities multiple times, but with different criteria that depends on the reporting requirements of each DFI involved.
Subsequently, these clients – shared by multiple DFIs – carry an added administrative burden. This burden can be reduced by harmonizing the definitions of at least some indicators.
How does it help International Finance Institutions?
Over time, the data collected by DFIs should help them better understand the impact of their investments, and therefore focus on what works best to maximize their development results on the ground.
Will more indicators be harmonized in the future?
Yes. The participant DFIs are actively working to build on the initial 27 indicators that have been harmonized in the MoU.