‘Blended finance’ is the strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries (OECD). If used effectively it has the potential to significantly narrow the gap in financing the Sustainable Development Goals (SDGs) yet two systemic challenges are impeding progress: (i) a low level of mobilisation of private sector investment at scale and (ii) insufficient development of public market investment assets and mobilisation of institutional investors.
Scope of work
With funding from the IMPACT Programme, Convergence is pursuing development impact and private sector investment mobilisation at scale through blended finance by:
- Developing a Working Group of development-focused organisations to collaborate on scale solutions
- Creating a blended finance knowledge platform and knowledge documents focused on scale for the Working Group
- Identifying a suite of blended finance vehicles that can achieve scale
- Convening the Working Group to consider investing in the blended finance vehicles.
The Blended Finance Working Group has been designed to accelerate the uptake of blended finance among major donors (bilateral, multilateral, and Foundations) in order to increase the amount of capital flowing towards investments that contribute to the SDGs.