This Brief analyzes the use of technical assistance in blended finance transactions, leveraging data from Convergence's historical deals database. Technical assistance is a versatile development tool that can be deployed to mobilize additional sources of finance for the Sustainable Development Goals (SDGs), by lowering the risks and high transaction costs associated with investments in new, uncertain, or fragile markets. According to the Convergence database, one-third of blended finance transactions have an associated technical assistance facility, which is a dedicated pool of resources that is deployed complementary to SDG investments. The largest proportion of technical assistance in blended finance has been for post-investment support to investee companies and projects, including for ESG integration or providing capacity building and training for operational efficiency.
Convergence intends for this Brief to be an initial starting point for greater dialogue around the use of technical assistance alongside commercial investments in blended finance transactions.