Why the Dual Nature of DFIs makes Harmonised Impact Measurement Difficult and What can be Done about It

This paper aims to understand why common impact measurement practices are relatively absent among DFIs. It is argued that each DFI has its own history, mandate, ownership structure and investment strategy, and all of this leads to different approaches to measuring development impact. The variation in DFIs’ approaches to impact measurement can be attributed to their inherent nature as hybrid organisations. This paper explains why DFIs’ hybrid nature makes harmonisation of impact measurement difficult and outlines ways in which harmonisation nevertheless can be achieved.