A Development Finance Institution (DFI) is a specialized financial organization that provides funding and support for projects aimed at promoting economic development in emerging markets. DFIs typically offer loans, equity investments, and guarantees to businesses and infrastructure projects that may struggle to secure financing from traditional banks due to higher risks. DFIs play a crucial role in fostering sustainable development by targeting sectors such as renewable energy, agriculture, and small and medium-sized enterprises (SMEs). They often collaborate with governments, private investors, and international organizations to mobilize resources and expertise, ultimately contributing to job creation and poverty reduction in developing regions.