Blended Concessional Finance: Scaling Up Private Investment in Lower-Income Countries

IFC

Blending funds from private investors with concessional funds from donors and philanthropic sources has a strong potential to scale up investment in lower-income countries and thereby accelerate development. The use of blended concessional finance is already prevalent in lower-income countries representing over 70 percent of IFC’s commitments. Recent strategies from development finance institutions including the World Bank Group indicate that the relative share of lower-income countries in the global mix of blended concessional finance will increase further. Scaling up engagements in lower-income countries requires solutions tailored to local contexts, as well as the deployment of the whole spectrum of development finance tools, including advisory work, regulatory dialogue and reform, and a mix of blending instruments encompassing both pricing and risk mitigation features.

    Date
    01 November, 2018
    Type
    Policy and Research Reports
    Region Focus
    Central Africa, East Africa, North Africa, Southern Africa, West Africa, West Asia
    Sector Focus
    Agriculture, Housing and Real Estate