Souq-al Arabi in Khartoum

Strengthening development finance in fragile contexts

Synthesis paper State and State Fragility initiative

Pioneering firms have the potential to achieve significant social and economic benefits in fragile and conflict‑affected settings. However, these contexts involve higher risks and costs, which dissuades pioneers and investors. In this policy paper, we argue that the public good these firms provide warrants the use of public funds to offset the costs of pioneering in these settings.