Transition presents both opportunities and challenges for developing countries and partners. As income per capita increases, countries progressively lose access to concessional finance. This enhances the risk of financing gaps in critical sectors such as health or education. With rising income per capita, however, countries may simultaneously increase their capacity to collect domestic resources and attract private investment.

The transition finance toolkit helps development partners and recipients better understand, anticipate and respond to the financing challenges faced by countries at each stage of their development. It also aims to optimise their access to financing in order to reap the full potential of the emerging opportunities.