EAIF 2026 Banner

__April 21-24, 2026, Nairobi, Kenya__

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Organised by the Alliance for Rural Electrification, The [ARE Energy Access Investment Forum (EAIF)](https://www.eaif.energy/) is the top annual investment event, fostering partnerships for the purpose of renewable electrification, including energy access, productive use, commercial and industrial uses of power and the green energy transition. With a track-record since 2016, ARE aims to mobilize 500 people in-person and over 1,000 people virtually for a total of more than 1,500 participants. This special EAIF edition will bring together private and public investors, industry leaders from both the energy and related sectors, utilities and government officials, for an exclusive EAIF experience. 

Convergence is a supporting partner of EAIF 2026.

ARE Energy Access Investment Forum 2026

Don’t miss the ARE Energy Access Investment Forum (EAIF) in Nairobi!

ARE Energy Access Investment Forum

gacmontrealtraining web

__Tuesday, March 31, 2026, 8:30AM - 12:00PM/mardi 31 mars 2026, 8 h 30 à 12 h 00__

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(Le français suit/French follows) 
 

Convergence, with support from [Global Affairs Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), is proud to introduce a new skill-building initiative under its [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). Blended finance—using catalytic capital from public or philanthropic sources to attract private sector investment—is a key approach to mobilizing investment in emerging markets and developing economies (EMDEs). This initiative aims to enhance the skills of Canadian fund and asset managers in designing and structuring blended finance vehicles for EMDEs, enabling both diversification and market-adjusted risk-return, while meeting the growing demand for sustainable investments.

This session will bring together participants from the Canadian sustainable finance space, equipping them with practical, hands-on knowledge through Convergence’s proprietary training materials and real-world case study presentations from leading fund and asset managers. It will also offer insights from mainstream asset managers and impact fund managers on scoping, launching, and deploying blended finance vehicles to attract concessional and commercial investors, thereby unlocking new opportunities and expanding their reach in EMDEs.

This training will be delivered in English, but French versions of all resources will be provided.

We previously held a version of this training in Toronto on October 25, 2025. This session will cover the same material as the Fall session.

*Registration is subject to pre-approval. You will be notified of your approval status shortly after submission.*

(FRANÇAIS/FRENCH)

Convergence, avec le soutien [Affaires mondiales Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), est fière de présenter une nouvelle initiative de renforcement des compétences dans le cadre de son programme [Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). Le financement mixte, qui consiste à utiliser des capitaux catalytiques provenant de sources publiques ou philanthropiques pour attirer les investissements du secteur privé, est une approche clé pour mobiliser les investissements dans les marchés émergents et les économies en développement (EMDEs). Cette initiative vise à améliorer les compétences des gestionnaires de fonds et d'actifs canadiens dans la conception et la structuration de véhicules de financement mixte pour les EMDEs, permettant à la fois la diversification et un rapport risque-rendement ajusté au marché, tout en répondant à la demande croissante d'investissements durables.

Cette session réunira des participants issus du secteur canadien de la finance durable et leur permettra d'acquérir des connaissances pratiques grâce au matériel de formation exclusif de Convergence et à des présentations d'études de cas réels par des gestionnaires de fonds et d'actifs de premier plan. Elle offrira également des informations provenant de gestionnaires d'actifs traditionnels et de gestionnaires de fonds d'impact sur la définition, le lancement et le déploiement de véhicules de financement mixte afin d'attirer des investisseurs concessionnels et commerciaux, ouvrant ainsi de nouvelles opportunités et élargissant leur portée dans les EMDEs.

Cette formation sera offerte en anglais, mais des versions françaises de toutes les ressources seront fournies.

Nous avons déjà organisé une version de cette formation à Toronto le 25 octobre 2025. Cette session couvrira les mêmes thèmes que la session d'automne.

*L'inscription est soumise à une pré-approbation. Vous serez informé de l'état de votre demande peu après l'avoir soumise.*

Blended Finance Training for Canadian Fund and Asset Managers (Montréal)

Join us for a training on blended finance for Canadian Fund and Asset Managers in Montréal.

Blended Finance Training for Canadian Fund & Asset Managers

Inside the Deal: MicroBuild Fund

__Tuesday, March 24, 2026, 9:00AM-10:00AM ET__

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Explore the inner workings of real blended finance transactions through Convergence's "Inside the Deal" webinar series. Each quarter, we delve into a successful deal, inviting the deal sponsor and key stakeholders to share candid insights on structuring these intricate transactions.

Our upcoming webinar will spotlight the MicroBuild Fund which is the first housing-focused microfinance investment vehicle dedicated to helping low-income families. The fund lends to microfinance institutions, which in turn provide small loans to families to build safe, decent and durable homes as their finances allow.

During this one-hour session, Habitat for Humanity will take us through the fund’s design, structuring process, and fundraising journey. We will also engage in in-depth discussions with key stakeholders to explore practical insights and lessons learned along the way. The webinar will conclude with an interactive Q&A for all participants.

*This webinar is open to Convergence members only.*

 Inside the Deal: MicroBuild Fund

Join Convergence for our next "Inside the Deal" webinar, which will spotlight the MicroBuild Fund which is the first housing-focused microfinance investment vehicle dedicated to helping low-income families.

FoE summit

__March 24-25, 2026, Amsterdam, Netherlands__

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This high-level event unites a global mix of top project developers, financial institutions, investors, service providers, and asset owners to tackle the critical strategic challenges and opportunities related to accelerating the renewable energy transition in emerging markets.

This edition’s theme — “Navigating change in the energy transition” — highlights the need to adapt to evolving global dynamics, shifting policies, and emerging technologies that redefine how renewable energy projects are financed and developed worldwide.

Convergence will be attending and participating in the Summit.

Future of Energy Summit 2026

Don’t miss the Future of Energy Summit in Amsterdam!

Future of Energy Summit

__Monday, March 23, 2026, 6:00PM – 8:00PM CET__

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Convergence and Climate Fund Managers invite you to a networking reception on the sidelines of the Future of Energy Conference in Amsterdam, Netherlands.

Join us to mingle with other impact investors, institutional investors, donors, development banks, and sponsors of blended finance deals. Climate Fund Managers and Convergence will present the latest trends and developments in the blended finance market, and attendees will have ample time to exchange ideas and discuss blended finance initiatives.

*You do not need to be registered for the Future of Energy Conference to attend our reception. Snacks and drinks will be served.*

*This event is at full capacity. If you'd like to join the waitlist, please contact your relationship manager.*

Blended Finance Networking Reception in Amsterdam

Join Convergence and Climate Fund Managers for a networking reception on the sidelines of the Future of Energy Conference in Amsterdam, Netherlands.

Convergence Blended Finance Training for Members in Asia

__March 17-18, 2026 in Singapore__

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Convergence, along with WWF, is hosting a blended finance training for members in Asia, a two-day, in-person convening from March 17-18 in Singapore, designed to advance blended finance collaboration and market-building across Asia and the broader Asia-Pacific region.

The Asia-Pacific faces significant financing gaps across climate mitigation, adaptation, resilience, and nature-positive development. Blended finance has a critical role to play in mobilizing private capital at scale, strengthening market capacity, and enabling innovative investment structures tailored to regional needs.

This regional member event will bring together Convergence members, investors, development finance institutions, philanthropies, insurers, corporates, and ecosystem partners to:
- Share data-driven insights on regional blended finance trends and capital flows
- Deepen understanding of sector-specific opportunities and barriers
- Foster peer learning and capacity building
- Identify collaboration opportunities among members and partners in Asia

Convergence is pleased to invite expressions of interest from members and strategic partners to participate in the Convergence Asia Regional Member Event, a two-day, in-person convening designed to advance blended finance collaboration and market-building across Asia and the broader Asia-Pacific region.

nairobi inperson training mar26 web v2

__Thursday, March 5, 2026, 9:00AM - 4:00PM EAT, Nairobi, Kenya__

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Convergence is organizing an in-person blended finance training in Nairobi for public, private, and philanthropic actors. This interactive, practice-driven training on blended finance is designed for intermediate-level staff and will combine insights from Convergence experts and blended finance practitioners in the field. The training will offer Convergence members and partners the opportunity to gather, share insights and experiences, and tackle difficult questions around innovative approaches to mobilize private capital for the Sustainable Development Goals.

The agenda will include:
- Blended finance market trends
- A deep dive into an innovative blended transaction
- Practitioner-led peer exchange discussions 
- An interactive group discussion based on a simulated case study

 
This training is complimentary for members (one seat for Standard Membership, two seats for Market Builder Membership), USD 150 for additional member seats, and USD 250 for non-members. Please contact your relationship manager for more details or questions about your membership type.
 

*Registration is on a first-come, first-served basis, and capacity is limited. We encourage registering early to reserve your seat.*

In-Person Convergence Blended Finance Training in Nairobi - March 2026

Join us in Nairobi, Kenya for a full-day training combining insights from Convergence experts and blended finance practitioners in the field.

Blended Finance Training in Nairobi, Kenya

Transformative capital: The role of blended finance in shaping the trajectories of gender- and climate focused impact funds in Sub-Saharan Africa

__March 3, 2026, 8:00AM-9:00AM EST__

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Join the Catalytic Climate Finance (CC Facility) Facility for a virtual webinar on March 3rd, 2026 from 8:00AM-9:00AM EST.

This 1-hour virtual session will review key findings from the CC Facility  Learning Hub's latest "[Transformative capital: The role of blended finance in shaping the trajectories of gender- and climate focused impact funds in Sub-Saharan Africa" report](https://www.convergence.finance/resource/transformative-capital-the-role-of-blended-finance-in-shaping-the/view) written by I&P Ecosystems. The session will also include a panel discussion with African-led fund managers and investors sharing their experiences using blended finance at the gender-climate nexus.

Webinar: Transformative capital Report 

nairobinetworking feb26 web

__Thursday, February 26th, 6:00pm – 8:00pm EAT__

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Convergence and CrossBoundary invite you to a networking reception on the sidelines of Sankalp Africa Summit in Nairobi. Attendees will have the opportunity to connect with other Convergence members, including impact investors, institutional investors, donors, development banks, sponsors of blended finance deals, and other ecosystem actors. Join us to exchange ideas and discuss blended finance initiatives.

Snacks and drinks will be served.

*Registration is on a first-come, first-served basis, with a maximum of 2 people per organization. To register please log in to your Convergence account.*

Member Networking Reception in Nairobi - February 2026

Join us for a member networking reception in Nairobi, Kenya

Member Networking Reception in Nairobi

AGES-REG---1200x628

__February 24-27, 2026, Cape Town, South Africa__

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Don’t miss [Africa's Green Economy Summit](https://wearevuka.com/green-economy/ages/) in Cape Town from February 24-27, 2025. The Summit will bring together the global investor community, project owners and business executives focused on green transport, renewable energy and clean technologies, African governments, cities, and policy makers to pave the way for an inclusive green economy and a sustainable future.

Convergence is a supporting partner of the Summit.

Africa's Green Economy Summit 2026

Don’t miss Africa's Green Economy Summit in Cape Town!

Africa's Green Economy Summit

Rethinking urban adaptation and mobilizing finance at scale for resilient cities in India

__Tuesday, February 17, 2026, 2:00PM - 3:30PM IST in Mumbai, India__

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Convergence, along with the Indian Council for Research on International Economic Relations (ICRIER), WRI India, is hosting a session on rethinking urban adaptation and mobilizing finance at scale for resilient cities in India, on the sidelines of Mumbai Climate Week.

The session brings together perspectives from public finance, urban governance, blended finance and climate-finance innovation with a particular focus on how concessional capital, risk-sharing instruments, and public balance sheets can be used to mobilise private investment. Additionally, the session positions blended finance not as a standalone solution, but as an instrument that must be anchored within stronger municipal and state public finance systems. It speaks directly to the actors who ultimately determine scale and sustainability, such as finance departments, finance commissions, and state governments, while remaining grounded in the lived fiscal constraints of Indian cities.
 

*Due to limited capacity, this is an invite-only event. For further information, please reach out to asia@convergence.finance*

Rethinking Urban Adaptation and Mobilizing Finance at Scale for Resilient Cities in India

Convergence, along with the Indian Council for Research on International Economic Relations (ICRIER), WRI India, is hosting a session on rethinking urban adaptation and mobilizing finance at scale for resilient cities in India, on the sidelines of Mumbai Climate Week.

Urban Adaptation and Finance for Resilient Cities in India

Member Training: Beyond International Capital - The Role of Domestic Investors in Blended Finance

__Wednesday, February 11, 2026 at 9:00AM - 10:00AM ET__

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Local capital is essential to the long-term scale, resilience, and sustainability of blended finance. Mobilizing domestic investors helps anchor investments in local markets, reduce reliance on foreign capital, and mitigate risks such as currency mismatch and capital flight. Yet, despite holding substantial pools of capital, domestic investors, including banks, institutional investors, and public financial institutions, remain underrepresented in blended finance across regions and sectors. Their participation is constrained by barriers including credit risk, currency risk, and limited track records of investable projects.

The session will open with key insights, data, and trends on local capital mobilization, drawing on Convergence’s latest analysis of blended finance transactions from 2022–2024. This opening segment will clarify how local investors are defined, where domestic capital is currently participating by region and sector, and the terms (commercial or concessional) on which local investors most commonly engage.

This will be followed by two 20-minute case study presentations, each demonstrating a distinct approach to mobilizing local capital in blended finance:

- __Dhamana Guarantee Company__: A regional credit enhancement platform launched in 2024 to provide local-currency guarantees for infrastructure and real sector projects across Kenya, Uganda, Tanzania, and Rwanda. This case will explore a solution designed to unlock domestic institutional capital and strengthen local capital markets.

- __Peru Blue Bond – Water.org__: A pioneering local-currency blue bond launched in Peru to mobilize domestic institutional investors and expand financing for inclusive water and sanitation services through the country’s municipal savings and credit banks. This case will explore a capital markets solution designed to scale sustainable infrastructure lending and strengthen local financial systems.

Join us for a member training exploring the role of domestic investors in blended finance.

The Role of Domestic Investors in Blended Finance

When designing a new fund, every fund manager eventually faces the same question: how should the financial vehicle be structured and governed to deliver on its investment thesis? Choosing the tenor or deciding between an evergreen and closed-end structure is one of the most important steps in the process, as the fund’s structure ultimately shapes how capital flows, which investors participate, and when they exit.

A closed-end fund runs for a fixed term (typically 10 years, with limited options for extension). Investors commit capital upfront, which is called/drawn down, then deployed during the investment phase, and returned to them at the end of the fund’s life based on cash flows generated through exits, repayments, interest, or other distributions. This structure is one of the most common in blended finance.

[Lendable’s MSME Fintech Credit Fund](https://lendable.io/news/lendable-closes-on-110m-emerging-market-fintech-fund-with-commercial-and-public-investors/) demonstrates how closed-end models function in practice. The fund provides fixed-term senior credit to fintech lenders who have clear maturities and repayment schedules, making the closed-end model a natural fit. This structure provides investors with a defined timeline for capital deployment, portfolio seasoning, and the return of proceeds.

Evergreen funds, in contrast, have no set end date. In the mainstream market, they are often able to make more frequent distributions, thereby offering greater liquidity. This can be harder to achieve in a typical impact fund, where the underlying investments are typically long-term and illiquid.

Finance in Motion’s [eco.business Fund](https://www.ecobusiness.fund/en/impact), established in 2014, illustrates how an evergreen model can function in blended finance. The fund provides financing and technical assistance to financial institutions and businesses committed to environmental practices across Latin America and Sub-Saharan Africa.

Operating in sectors that require patient capital, the fund goes beyond financing. It works closely with investees to align on the use of proceeds and provides advisory support and capacity building to drive measurable impact. At the same time, investors expect rigorous impact measurement and reporting. Building and sustaining this dual infrastructure for both investees and investors requires long-term continuity and makes economic sense when costs can be amortized over time. The evergreen structure therefore, aligns directly with the fund’s impact model.

Within a blended finance architecture, stability is essential: a long-term or perpetual first-loss tranche can anchor the vehicle, while senior tranches may carry shorter maturities aligned with investor preferences and asset repayment profiles.

Convergence Market Data finds that only 82 out of 1,478 blended transactions in our database are evergreen. While evergreen structures are less common in blended finance, we have recently seen growing momentum for evergreen funds as stakeholders increasingly recognize that longer horizons can be better suited to achieve certain development outcomes than the traditional 10-year cycle.

In this context, Convergence recently hosted a [webinar](https://www.convergence.finance/calendar/5yLxUHumih87WPljyqDe2E/view) examining how a vehicle’s structure affects fundraising, flexibility, and long-term impact. The session highlighted not only the conceptual differences between evergreen and closed-end models, but also how these choices play out in real fundraising conversations with investors. Here we share some key insights from the discussion.

__Balancing Flexibility with Fundraising Simplicity__ 
Participants agreed that simplicity is essential, especially when engaging institutional investors. These investors are accustomed to clear timelines, predictable exits, and straightforward reporting, features typical of closed-end funds.

By contrast, evergreen structures offer greater flexibility, allowing capital to remain in the vehicle and be redeployed. This feature can attract strategic investors who value sustained impact and the ability to remain invested for longer periods without premature exits. However, evergreen models also introduce more limitations related to liquidity, valuation, and redemption mechanisms, which can be a barrier for many institutional investors.

To help bridge this gap, new, innovative solutions are emerging that combine long-term flexibility with clearer liquidity pathways. The recently launched [Octobre Liquidity Guarantee Facility](https://innpact.com/octobre-liquidity-guarantee-facility-olgf-launches/) illustrates how thoughtful design can introduce liquidity options even in traditionally illiquid impact funds. The facility allows investors to sell their stakes and access liquidity without forcing fund managers to unwind assets before their natural timeline. Complementing such fund-level solutions, ecosystem-level initiatives are also beginning to address structural liquidity constraints. The [Liquidity Platform for Impact (LPI)](https://edfimc.eu/what-we-do/liquidity-platform-for-impact-programme-lpi/), an EFSD+ Guarantee Programme run by EDFI Management Company, aims to support the development of a secondary market for impact investments in emerging markets by coordinating public and private actors and facilitating exit opportunities for investors holding positions in impact funds. While LPI is not a liquidity solution in itself, its focus on secondary market development underscores the growing recognition that attracting institutional capital into long-term emerging market investments will require both targeted fund-level innovations and broader market-building efforts.

__Recycling Capital and Maximizing Impact__ 
Evergreen funds can amplify impact by allowing capital to be recycled and redeployed multiple times. Reinvested proceeds extend the reach of the same funding and compound results over time, creating a multiplier effect for long-term impact. For fund managers, this approach provides the flexibility to scale with successful investees and remain engaged beyond a single investment cycle.

However, many participants noted that recycling capital depends on a strong, predictable investment pipeline. If new opportunities are slow to materialize, capital may sit idle, reducing efficiency. In practice, evergreen funds can deepen impact within a single market where a steady pipeline exists, while closed-end funds allow capital to be refreshed and redirected toward new frontiers.

__Matching Fund Horizons to Sector Realities__ 
The discussion then shifted to whether certain sectors naturally lend themselves to one structure over the other. Participants agreed that some sectors with long project life cycles or uncertain revenue models require patient, long-term capital. Evergreen vehicles provide the flexibility to hold investments for longer periods, allowing businesses to mature and deliver meaningful impact over time. However, closed-end funds can also serve these sectors when designed with extended tenors, such as 20-year maturities.

[The Forestry and Climate Change Fund (FCCF)](https://www.convergence.finance/resource/forestry-and-climate-change-fund-fccf-case-study/view) offers a practical example. Forestry investments often require longer horizons than traditional closed-end structures allow. FCCF was structured with a 15-year term, but many benefits only began to materialize toward the end of the fund’s life, highlighting the trade-off between time and impact. One of the key insights from Convergence’s case study on the Fund was that a longer-term vehicle with a 20-year tenor would have been a better fit for forestry cycles.

__Choosing the right structure__ 
The session reaffirmed that no single structure is universally better. Evergreen funds offer flexibility and compounding, while closed-end funds offer simplicity, liquidity, and fundraising efficiency. The choice depends on the investment strategy, the investors involved, and the desired sector. As one speaker summarized, “it is not evergreen versus closed-end, it is about designing what works for your mission and your market.”

*This webinar was one of Convergence’s member trainings, hosted quarterly for our global network. Explore upcoming sessions and topics [here](https://www.convergence.finance/calendar).*

Key Insights from Convergence’s Latest Webinar on Structuring Blended Finance Funds 

Evergreen vs. Closed-End Funds

Evergreen vs. Closed-End Funds: Key Insights from Convergence’s Latest Webinar on Structuring Blended Finance Funds

Rabobank is a large Dutch bank with a presence in 35+ countries, including 25+ emerging countries via Rabo Partnerships and Rabobank Foundation. In the Netherlands, Rabobank serves both retail and corporate clients, while globally they focus on the food and agricultural sector.

Within Rabobank, Rabo Partnerships is a dedicated entity that partners with financial institutions around the world to drive impact in food and financial systems, especially in emerging markets. In this way, it aims to strengthen these institutions’ ability to serve smallholder farmers and agricultural small- and medium-sized enterprises (agri‑SMEs).

We spoke to Pieter Bos, Sr. Advisor Blended Finance at Rabo Partnerships about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

__Tell us about how you engage with partners to develop scalable food and agriculture finance solutions in emerging markets.__

We do this in a couple of ways. One is by taking minority equity stakes in these financial institutions and another is by delivering technical assistance. For example, part of this work involves setting up digital solutions, like developing digital credit‑scoring tools, using sensor and satellite data for farm and climate risk mapping, and embedding data‑driven approaches into the bank’s operations. The goal is really to help scale sustainable finance, reduce risk, and increase access to financial services where they are needed most.

We also have a dedicated blended finance team within Rabo Partnerships that focuses on bringing together public and private funding to mobilize capital into emerging markets. Rather than focusing on fund management, the team concentrates on origination and structuring: translating sustainability and transition challenges into concrete lending propositions that work for farmers, clients, and commercial banks alike. 

The blended finance team structures loans for Rabobank’s large base of corporate and rural clients in emerging markets, both on an individual basis and through portfolio lending. In addition, the team supports local financial institutions in engaging with impact capital providers including impact funds and development banks, and developing lending propositions that expand access to finance for the agricultural sector.

__Rabobank co-created the AGRI3 Fund, one of the most recognized blended finance vehicles. What motivated the bank to help launch this fund, and how has it evolved to meet market needs?__

AGRI3 was launched in 2020 by Rabobank and United Nations Environment Programme (UNEP), together with IDH and with support from FMO - Entrepreneurial Development Bank, and the Dutch government. It was created in response to the urgent need to support the transition to sustainable agricultural practices and to combat deforestation. Many farmers and agribusinesses are willing to invest in sustainable land use, but the financial system is often unable to support the associated risks and longer timelines.

Transitioning to deforestation-free and climate-resilient production typically requires longer loan tenors, grace periods and financing for activities that might not generate immediate cash flows. These features sit uncomfortably within traditional bank risk frameworks.

AGRI3 was designed as a guarantee-based blended finance fund. By providing partial credit guarantees and technical assistance, the fund enables commercial banks to -amongst others - extend loan tenors, increase ticket sizes and support transition investments that would otherwise remain unfunded.

A strong example of a loan proposition built with Agri3 Fund is [Renova Pasto](https://www.rabobank.com/about-us/rabo-partnerships/news/011331477/renova-pasto) in Brazil: a standardized loan product that combines long term financing, partial guarantees and technical assistance to support cattle farmers restore degraded pastureland and accelerate their compliance with the Brazilian Forest Code. Embedding this structure into regular credit processes has significantly improved efficiency and replicability.

Since its launch, AGRI3 has evolved from supporting individual transactions to more scalable, standardized approaches, including partnerships with other financial institutions.

__Many of Rabo Partnerships’ blended finance transactions make use of guarantees. Could you explain how guarantees help unlock private capital, and why Rabo Partnerships has chosen to prioritize this instrument over other blended finance tools?__

In sustainable agriculture and land-use transitions, risk is often structural rather than cyclical. Farmers face climate risks, transition risks and temporary income dips as they adopt new practices. At the same time, lenders face uncertainty around unfamiliar business models and the longer investment horizons these transitions require.

Guarantees directly address these challenges by absorbing part of the downside risk. For banks, that means they can lend with longer tenors, to clients, activities and/or assets that normally fall outside the standard risk appetite, while maintaining commercial pricing and credit discipline.

Rabobank sees clear value in these guarantees because they fit naturally into bank lending frameworks. They can be deployed efficiently, without requiring lenders to fundamentally change how they operate.

At the same time, guarantees remain scarce relative to demand. Expanding their availability for globally active lenders like Rabobank is, in our opinion, one of the most impactful roles development financial institutions (DFIs) and development banks could play in unlocking private capital for sustainable agriculture.

__What are the key impact areas Rabobank has focused on through its blended finance initiatives?__

Our blended finance team’s initial efforts have been mainly focused on deploying the AGRI3 Fund alongside Rabobank’s own balance sheet, which resulted in a sizeable and growing portfolio. 

At the same time, when it comes to working with local financial institutions and our “partner banks”, we are still at an earlier stage, but we see a clear opportunity to scale. Local banks and non-bank financial institutions are essential for farmer finance. They are close to farmers and understand local realities, but many remain cautious about financing food and agriculture businesses because of perceived risks.

Moving the needle requires stronger collaboration with value‑chain players to improve risk profiles, combined with blended finance tools that allow banks to reach underserved segments more confidently.

Overall, Rabo Partnerships’ blended finance work aligns with three closely connected Rabobank impact priorities:
- Nature: forest protection, land restoration, and deforestation-free supply chains
- Climate: mitigation and adaptation through more resilient farming systems
- People: improved rural livelihoods, equality, income stability, and access to financial services for rural communities.
 
Food security is also becoming an increasingly important focus; our work supports initiatives that stabilize and grow sustainable food production at scale. This includes solutions that help farmers access modern equipment and high‑quality inputs essential for productivity and climate resilience. Blended finance solutions play a critical role by sharing transition risks and supporting the evolution of our credit and risk‑assessment frameworks. This allows commercial capital to finance investments that would otherwise fall outside standard risk appetite. Experience shows that these objectives cannot be addressed in isolation. For instance, even environmental initiatives only scale when they are economically viable for farmers. 
 

__As a commercial bank, what have been the key challenges and opportunities you’ve experienced when working with DFIs or other public sector stakeholders to structure blended finance transactions?__

One recurring challenge we face is bringing together two quite different mindsets – those of commercial bankers and impact capital providers. It can take time to find the right partner with the appropriate de-risking tools, aligned impact ambitions, and the ability to engage at the right moment. This is partly because impact capital is fragmented. 

At the same time, there is a strong opportunity to combine complementary strengths. Rabo Partnerships brings origination capacity, sector expertise, and execution capability, while catalytic capital providers bring risk-bearing, possibly concessional capital and environmental, social, and governance (ESG) expertise. When these strengths come together effectively, we can co-develop new lending propositions that work for large corporates and value chain players, while ensuring they are scalable and replicable beyond individual transactions. 

__Drawing on your experience as a commercial lender and globally active food and agriculture bank, where do you see the greatest opportunities for blended finance to help unlock more bankable transactions in the sustainable agriculture sector?__

The biggest opportunity lies in moving beyond pilots and ensuring capital reaches farmers at scale.

Some of the most promising areas include portfolio-level guarantees for partner banks serving smallholders, value chain finance linked to corporates, like input providers, sustainable equipment manufacturers and off takers, and local currency risk-sharing structures. We also see strong potential in embedding climate and nature transition products directly into core bank offerings, such as with the Renova Pasto model, rather than treating it as a stand-alone initiative.

Rabo Partnerships can originate strong, real economy pipelines across regions and commodities. What is often missing is sufficient catalytic capital to share transition risks and enable these solutions to scale. This creates a clear opportunity for development banks, DFIs, and impact funds to partner with Rabobank, Rabo Partnerships, and our partner banks in building the next generation of sustainable agriculture finance.

Read our Member Spotlight with Rabobank to learn about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

Rabobank Member Spotlight with Pieter Bos

Institutional investors are emerging as a critical source of capital, with pension funds and insurers committing larger tickets to blended transactions targeting renewable energy, energy efficiency, and agriculture. In 2024, [commitments](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view) from these investors rose from just $2 million in 2022 to $1.6 billion, highlighting the growing role fund and asset managers are playing in blended finance.

Convergence’s [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm), an initiative funded by [Global Affairs Canada](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), aims to strengthen the capacity of fund and asset managers to participate in blended finance by equipping them with tailored training, grant funding, and acceleration assistance required to structure and launch blended finance solutions.

This first Call for Proposals demonstrated strong demand from fund and asset managers for the holistic support the Accelerator and Convergence offer. The submissions reflect a broad diversity of strategies and levels of maturity, with proposals spanning early-stage concepts through to more advanced vehicles approaching market readiness. The majority of applications propose fund structures, underscoring growing interest in scalable investment vehicles.

Following a competitive review process, the proposals that stood out demonstrated strong additionality in mobilizing private and institutional capital into markets and sectors where capital is not flowing at scale on commercial terms alone. These fund and asset managers are using catalytic capital in the form of first-loss, guarantees, and technical assistance to de-risk and mobilize capital from local pensions, insurers, and global corporations.

Across different regions and asset classes, these proposals use blended finance to address specific barriers faced by investors, such as currency risk, perceived credit risk, early-stage business models, limited exit pathways, or regulatory constraints through blended structures. Small and medium-sized enterprise (SME) investing emerged as a major theme across proposals, reflecting the significant financing gap facing SMEs in developing countries.

## Semi-Finalists for the First Call for Proposals 
A sub-set of the vehicles below, listed in alphabetical order, will move to the Investment Committee stage. 

__Àrgentil Investment Fund (ÀSIF) L.P. by [Àrgentil Capital Management Limited](https://www.argentilcm.com/)__ 
A growth-oriented private equity fund investing in SMEs in Nigeria, Ghana, and other West African countries through a mix of hard-currency and local-currency equity strategies. 
 
__Ashmore Impact Loan Strategy by [Ashmore Group plc](https://www.ashmoregroup.com/en-gb)__ 
A structured private credit strategy investing mainly alongside multilateral development bank-originated loans, complemented by selective direct private credit exposures in emerging markets. 
__DFP Africa Mobility Innovation Fund (AMIF) by [Double Feather Partners, Inc.](https://doublefeather.com/)__ 
A blended finance venture fund investing in early-stage mobility and logistics solutions that support low-carbon transport and inclusive economic activity in Africa. 
 
__EMIF Group Fund by [EMIF Group](https://emifgroup.com/)__ 
A blended finance equity fund that bridges the critical gap between feasibility and bankability in urban infrastructure projects across emerging markets. 
 
__EG Economic Empowerment Fund L.P. (EG-EEF) by [EG Capital G.P.](https://egcapital.online/)__ 
A blended finance mezzanine debt fund supporting climate adaptation-focused SMEs, with a strong emphasis on gender inclusion, job creation, and intra-Africa regional trade across least developed countries (LDCs). 
 
__Farmties Fund 1 by [Farmties Capital Limited](https://www.farmties.com/)__ 
A revolving working capital investment vehicle financing export-oriented agricultural SMEs across Sub-Saharan Africa. 
 
__Urapi2 by [Ecotierra Inc.](https://www.ecotierra.co/) Project Management Company__ 
A vertically integrated agroforestry investment platform financing nature-based solutions projects linked to carbon credits and sustainable commodity value chains in Latin America. 
 
__Oryx Impact by [Oryx Impact S.L.](https://oryximpact.com/)__ 
A fund-of-funds strategy targeting African impact funds, with a phased approach to introducing blended finance features to attract local institutional investors. 
 
__SecondMuse Capital Discovery Fund by [SecondMuse Capital](https://www.secondmusecapital.com/)__ 
A place-based blended finance facility using debt, grants, and outcome-based instruments to unlock green investment that is nature positive, focused on restoring nature, and designed to deliver mutual value and a resilient wellbeing economy in Southeast and South Asian markets. 
 
__Sini Greenfield Fund, managed by [Sini Capital Management](https://sinicapitalmanagement.com/)__ 
A Shariah-compliant fund investing in greenfield and early-stage agricultural enterprises across East Africa. The fund focuses on export markets and climate-aligned production, combining equity investment with hands-on venture building to develop scalable anchor firms. 
 
__Transform & Adaptation Fund (TAF) by [AfricInvest](https://www.africinvest.com/) and [Thirdway Partners](https://www.thirdway.earth/)__ 
A climate adaptation-focused private debt fund investing in resilient agriculture and food value chain, sustainable mobility, and built environment sectors across African and Latin American markets. 

These blended finance vehicles span a range of asset classes, geographies, and sectors, including private debt and equity, infrastructure, agriculture, energy, and climate adaptation. Collectively, they reflect the growing sophistication of fund managers designing structures that aim to meet the risk-return expectations of institutional investors. We would also like to acknowledge the Canada-based fund and asset managers who participated in the first Call for Proposals. A4FM remains committed to strengthening the ecosystem and building the capacity of Canadian institutional players to engage meaningfully in blended finance initiatives globally.

“The depth and nature of the A4FM Accelerator’s initial round of applicants clearly demonstrates the appetite for blended finance as a key structuring tool to facilitate institutional investing in the emerging and developing economies at scale. We congratulate these top-ranked applicants for designing innovative, investable structures that deploy catalytic capital to overcome real market barriers and open pathways for commercial investing in traditionally undercapitalized markets.” — *Leah Pedersen, Senior Director, Blended Finance Accelerator, Convergence*

A subset of these proposals will undergo further detailed due diligence, following which vehicles may be recommended to the Investment Committee for award consideration. Stay tuned for the final list of awardees and for A4FM’s next call for proposals, expected to launch in April 2026.

(FRANÇAIS/FRENCH)

__Annonce des demi-finalistes : premier appel de propositions pour l’Accélérateur de financement mixte pour les gestionnaires de fonds et d’actifs__

Les investisseurs institutionnels sont en train de devenir une source essentielle de capital, les fonds de pension et les assureurs s’engageant davantage dans des transactions mixtes ciblant les énergies renouvelables, l’efficacité énergétique et l’agriculture. En 2024, les [engagements](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view) de ces investisseurs sont passés de seulement 2 M$ en 2022 à 1,6 G$, soulignant le rôle croissant des gestionnaires de fonds et d’actifs dans le financement mixte.

L’[Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm) de Convergence, une initiative financée par [Affaires mondiales Canada](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), vise à renforcer la capacité des gestionnaires de fonds et d’actifs à participer au financement mixte en les dotant d’une formation sur mesure, de subventions et d’une aide à l’accélération nécessaires pour structurer et lancer des solutions de financement mixte.

Ce premier appel de propositions a démontré une forte demande de la part des gestionnaires de fonds et d’actifs pour le soutien holistique de l’Accélérateur et de l’offre Convergence. Les soumissions reflètent une grande diversité de stratégies et de niveaux de maturité, avec des propositions couvrant des concepts à un stade précoce jusqu’à des véhicules plus avancés, proches de leur mise en marché. La majorité des propositions portent sur des structures de fonds, soulignant l’intérêt croissant pour des véhicules d’investissement évolutifs.

À la suite d’un processus d’évaluation concurrentiel, les propositions retenues ont démontré une forte additionalité, en mobilisant des capitaux privés et institutionnels vers des marchés et secteurs insuffisamment desservis par des financements aux conditions strictement commerciales. Ces gestionnaires de fonds et d’actifs utilisent du capital catalytique, sous forme de tranches de première perte, de garanties et d’assistance technique, afin de réduire le risque et de mobiliser des capitaux provenant de régimes de retraite locaux, d’assureurs et d’entreprises multinationales.

Dans différentes régions et catégories d’actifs, ces propositions ont recours au financement mixte afin de lever des obstacles précis auxquels font face les investisseurs, notamment le risque de change, le risque de crédit perçu, des modèles d’affaires en phase initiale, des options de sortie limitées ou des contraintes réglementaires, au moyen de structures mixtes. L’investissement dans les petites et moyennes entreprises (PME) est apparu comme un thème majeur dans toutes les propositions, reflétant l’important déficit de financement auquel sont confrontées les PME dans les pays en développement.

## Demi-finalistes pour le premier appel de propositions 
Un sous-ensemble des véhicules ci-dessous, énumérés par ordre alphabétique, passera à l’étape du comité d’investissement. 

__Àrgentil Investment Fund (ÀSIF) L.P. par [Àrgentil Capital Management Limited](https://www.argentilcm.com/)__ 
Un fonds de capital-investissement axé sur la croissance qui investit dans des PME au Nigéria, au Ghana et dans d’autres pays d’Afrique de l’Ouest grâce à un mélange de stratégies d’actions en devises fortes et en devises locales. 
 
__Ashmore Impact Loan Strategy par [Ashmore Group plc](https://www.ashmoregroup.com/en-gb)__ 
Une stratégie structurée de crédit privé investissant principalement aux côtés de prêts multilatéraux provenant de banques de développement, complétée par des expositions directes sélectives au crédit privé sur les marchés émergents. 
 
__DFP Africa Mobility Innovation Fund (AMIF) par [Double Feather Partners, Inc.](https://doublefeather.com/)__ 
Un fonds de capital-risque de financement mixte investissant dans des solutions de mobilité et de logistique à un stade précoce qui soutiennent le transport à faible émission de carbone et l’activité économique inclusive en Afrique. 
 
__EMIF Group Fund par [EMIF Group](https://emifgroup.com/)__ 
Un fonds de financement mixte qui comble le fossé critique entre la faisabilité et le caractère finançable des projets d’infrastructure urbaine sur les marchés émergents. 
 
__EG Economic Empowerment Fund L.P. (EG-EEF) par [EG Capital G.P.](https://egcapital.online/)__ 
Un fonds de dette mezzanine en financement mixte destiné à soutenir des PME axées sur l’adaptation aux changements climatiques, mettant fortement l’accent sur l’inclusion de genre, la création d’emplois et le commerce régional intra-africain dans les pays les moins avancés (PMA). 
 
__Farmties Fund 1 par [Farmties Capital Limited](https://www.farmties.com/)__ 
Un véhicule d’investissement en fonds de roulement renouvelable finançant des PME agricoles orientées vers l’exportation en Afrique subsaharienne. 
 
__Urapi2 par [Ecotierra Inc.](https://www.ecotierra.co/) Project Management Company__ 
Une plateforme d’investissement en agroforesterie verticalement intégrée finançant des projets de solutions basées sur la nature liés aux crédits carbone et aux chaînes de valeur des produits de base durables en Amérique latine. 
 
__Oryx Impact par [Oryx Impact S.L.](https://oryximpact.com/)__ 
Une stratégie de fonds de fonds ciblant des fonds d’impact africains, avec une approche progressive visant à intégrer des mécanismes de financement mixte afin d’attirer des investisseurs institutionnels locaux. 
 
__SecondMuse Capital Discovery Fund par [SecondMuse Capital](https://www.secondmusecapital.com/)__ 
Un mécanisme de financement mixte local utilisant la dette, des subventions et des instruments axés sur les résultats pour débloquer des investissements verts positifs pour la nature, axés sur la restauration de la nature et conçus pour offrir une valeur mutuelle et une économie du bien-être résiliente sur les marchés du Sud-Est et de l’Asie du Sud. 
 
__Sini Greenfield Fund, géré par [Sini Capital Management](https://sinicapitalmanagement.com/)__ 
Un fonds conforme à la charia qui investit dans des entreprises agricoles nouvelles et en phase de démarrage en Afrique de l’Est. Le fonds cible les marchés d’exportation et une production alignée sur les objectifs climatiques. Il combine des investissements en capital avec un accompagnement actif en création et en développement d’entreprises afin de bâtir des entreprises phares capables de croître à grande échelle. 
 
__Transform & Adaptation Fund (TAF) par [AfricInvest](https://www.africinvest.com/) et par [Thirdway Partners](https://www.thirdway.earth/)__ 
un fonds de dette privée axé sur l’adaptation aux changements climatiques, qui investit dans l’agriculture résiliente et la chaîne de valeur alimentaire, la mobilité durable ainsi que le secteur du cadre bâti, dans différents marchés d’Afrique et d’Amérique latine. 

Ces véhicules de financement mixte couvrent une gamme de classes d’actifs, de zones géographiques et de secteurs, y compris la dette privée et les capitaux propres, les infrastructures, l’agriculture, l’énergie et l’adaptation au climat. Collectivement, ils reflètent la sophistication croissante des gestionnaires de fonds qui conçoivent des structures visant à répondre aux attentes de risque-rendement des investisseurs institutionnels. Nous tenons également à remercier les gestionnaires de fonds et d’actifs basés au Canada qui ont participé au premier appel de propositions. A4FM demeure déterminée à renforcer l’écosystème et à accroître la capacité des acteurs institutionnels canadiens à s’engager de façon significative dans des initiatives de financement mixte à l’échelle mondiale.

 « La profondeur et la nature du premier tour de candidatures de l’Accélérateur A4FM démontrent clairement l’appétit pour le financement mixte en tant qu’outil de structuration clé pour faciliter l’investissement institutionnel dans les économies émergentes et en développement à grande échelle. Nous félicitons ces candidats de premier plan pour la conception de structures innovantes et investissables qui déploient un capital catalytique pour surmonter les obstacles réels du marché et ouvrir la voie à l’investissement commercial sur des marchés traditionnellement sous-capitalisés. » 
 
— *Leah Pedersen, directrice principale, Accélérateur de financement mixte, Convergence*

Un sous-ensemble de ces propositions fera l’objet d’une vérification diligente plus approfondie, à la suite de laquelle certains véhicules d’investissement pourraient être recommandés au Comité d’investissement en vue d’une attribution. Restez à l’affût de la liste finale des lauréats ainsi que du prochain appel de propositions d’A4FM, dont le lancement est prévu en avril 2026.

The semi-finalists for Convergence’s Blended Finance Accelerator for Fund Managers (A4FM) have been announced!

Semi-Finalists Announced: A4FM First Call For Proposals

Semi-Finalists Announced: Blended Finance Accelerator for Fund & Asset Managers First Call For Proposals

The [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo), an initiative launched by the [Australian Department of Foreign Affairs and Trade (DFAT)](https://ministers.dfat.gov.au/minister/pat-conroy/media-release/innovative-indo-pacific-ngo-accelerator-boost-development-projects) in partnership with Convergence Blended Finance, completed its first Call for Proposals with a strong and diverse response from NGOs seeking to mobilize private capital for climate action and gender equality outcomes across the Indo-Pacific.

With over 80 applications received, the response underscores the growing ambition of NGOs to participate in blended finance transactions amid persistent financing gaps and grant and donor funding volatility, particularly in underserved and climate-vulnerable markets.

Convergence’s Market Data indicates that only 17% of all blended finance transactions have an NGO participating in developing and implementing the transaction, highlighting a clear gap between interest and participation. Consultations conducted by Convergence highlight several key barriers faced by NGOs, including limited technical expertise in structuring financial vehicles, regulatory constraints, and challenges in securing organizational buy-in.

This Accelerator provides vital support to strengthen the role of NGOs in blended finance transactions, enabling them to design, pilot, and scale innovative projects, as impact managers, technical assistance providers and, where suitable, fund managers.

Against this backdrop, it is encouraging to see a diverse range of applications, spanning early-stage concepts to near-investment-ready vehicles, with a strong focus on solutions targeting women-led enterprises and climate-resilient business models.

Following a competitive review process, the proposals advancing to the full proposal stage demonstrated strong alignment with the Accelerator’s objectives. These included solutions in which NGOs played a central role in the design and implementation, with clear value propositions for target markets, strong organizational commitment, locally anchored delivery models, and credible potential to address development finance gaps through innovative blended finance structures. Common across the cohort is a strong emphasis on small and medium-sized enterprise (SME) financing, particularly in undercapitalized markets, alongside the use of blended instruments including guarantees, private credit, equity funds, trade finance facilities, bonds, and project finance structures.

Spanning multiple regions and asset classes, the proposals consistently target persistent market constraints such as perceived credit and currency risk, limited risk appetite for early- and growth-stage enterprises, and restricted access to working capital and long-term finance for women-led and climate-focused SMEs.

Collectively, these proposals reflect a clear shift toward integrated, intersectional solutions that address cross-cutting themes of climate resilience, healthcare delivery, sustainable agriculture, nature-based solutions, and gender that remain underserved by traditional financial markets.

## Semi-Finalists for the First Call for Proposals 
(Presented in alphabetical order) 

__[Caritas Australia’s](https://www.caritas.org.au/?srsltid=AfmBOoqaNQUVutQWGwVH1DN53DlaCVMKh-ZI2TO8-VY1jxA0b62-nr-D) Lumana Health Facility__ 
A facility expanding reliable solar energy across rural health facilities in Papua New Guinea, strengthening climate resilience and healthcare delivery in remote communities in partnership with Catholic Church Health Services (CCHS), TAG Energy PNG, and [bechtel.org](http://bechtel.org/) 
 
__[Goodreturn](https://goodreturn.org.au/) Impact Investment Fund II__ 
A blended finance fund supporting local financial service providers across the Pacific and Southeast Asia to lend to new markets through a credit guarantee and technical assistance sidecar, with a focus on women-led SMEs. 
 
__[Grameen Foundation](https://grameenfoundation.org/her-outcomes/resilience) and [IIX's](https://iixglobal.com/) InvestHER Climate Resilience Bond for Women__ 
A blended bond designed to channel capital to women-focused SMEs with high-impact green and blue economy solutions in the Philippines. 
 
__[Oxfam Australia](https://www.oxfam.org.au/) and [OBOR](https://obor.asia/)’s Equi Green Fund (EGF)__ 
A private investment fund providing flexible capital to inclusive, gender-responsive, and climate-resilient growth stage SMEs across Southeast Asia. 
 
__[Red Hat Impact](https://redhatimpact.com/), [ICDP](https://www.icdp.com.au/) and [Criterion’s](https://www.criterioninstitute.org/) Indo-Pacific Trade Finance Vehicle for Women’s MSMEs (TFV 2.0)__ 
A trade finance facility addressing working capital constraints for women-led MSMEs across the Pacific and Southeast Asia. 
 
__[Save the Children Global Venture’s](https://scgv.org/) Asia Health Care Fund__ 
A private equity fund investing in early- and growth-stage healthcare ventures across the Pacific and Southeast Asia. 
 
__[Transform Aid International (TAI)’s](https://transformaid.org/) Climate Resilient Livelihood Facility (CRLF)__ 
TAI and partners, Baptist Aid-Bangladesh Baptist Church Fellowship (BBCF), PARI Development Trust (PARI), Protibondhi Community Centre (PCC), Brightlight, and LINC Strategies are developing a private credit facility channelling catalytic capital into locally led, climate-resilient, women-led enterprises targeting agricultural markets in Bangladesh. 
 
__[World Vision Australia](https://www.worldvision.com.au/) and [Vision Fund International’s](https://www.visionfund.org/) Women’s Green Enterprise Guarantee Facility__ 
World Vision Australia is partnering with World Vision in Sri Lanka and Cambodia, and with Wahana Visi Indonesia, to develop a guarantee facility that de-risks lending to women-led MSMEs delivering climate-resilient solutions across South and Southeast Asia. 
 
__[WWF](https://www.wwf.sg/) and [Terraformation’s](https://terraformation.com/) CANOPY Blended Finance Facility for Biodiverse Mangrove Restoration__ 
A project finance facility supporting community-driven mangrove restoration and reforestation projects across the Asia Pacific. 
 
__[Xpand Foundation](https://xpand.net.au/), [Pollination Group](https://pollinationgroup.com/), and Foundation Rai Matak's Rai Matak Global__ 
An agroforestry financing platform designed to scale community-led agroforestry forests in Timor-Leste. 

These semi-finalists reflect the breadth of innovation emerging from NGOs applying blended finance to address climate and gender challenges across the Indo-Pacific. Spanning multiple vehicle types, they demonstrate how NGOs can design investable solutions that mobilize private capital while delivering measurable development impact.

“The strong response to this first call demonstrates pent-up demand among NGOs for private sector financing tools that scale-up impact for their end beneficiaries. By supporting NGOs in pursuit of blended finance solutions, the Accelerator will tap new wells of opportunity to attract private capital for community resilience and mission-driven economic growth across the region”, Convergence Senior Director, Leah Pedersen.

A subset of these proposals will undergo further detailed due diligence and will be considered for award consideration.

Stay tuned for the final list of awardees and for future call for proposals, and congratulations to these semi-finalists.

Semi-Finalists Announced: The Indo-Pacific NGO Blended Finance Accelerator First Call for Proposals 

*This op-ed was originally published in [Business & Financial Times](https://thebftonline.com/2026/01/27/how-blended-finance-can-catalyze-economic-recovery/).*

Ghana’s economy has made a remarkable comeback after the debt default crisis of 2022, one of the country’s toughest economic periods in decades. Following elevated inflation which exceeded 50% and a dramatic depreciation of the Cedi, the government undertook broad-based reforms under the aegis of a USD 3 billion IMF-supported program. By late 2025, headline inflation stood at 5.4%, GDP growth was projected at 4.3%, and the country experienced a record trade surplus driven by strong gold and cocoa exports.

This has bolstered foreign exchange reserves, stabilized the Cedi, and put public finances on a firmer footing. Credit rating agencies have taken note, and Ghana’s sovereign rating was upgraded from restricted default to stable territory, marking a return of investor confidence.

The most recent national budget signaled a deliberate shift from crisis management to investment-led growth, marking a crucial inflection point for the economy. Fiscal savings were redirected into productive sectors such as manufacturing, agriculture, and renewable energy. Against this backdrop, and in a context of declining Official Development Assistance (ODA), the government has recognized that blended finance can serve as a catalyst to finance the country’s long-term, inclusive development.

Blended finance refers to financial structures that combine public, philanthropic, and private capital to finance sustainable development. It has gained traction in recent years as a means to leverage different types of funding to achieve development objectives, particularly in countries where traditional sources of financing may be limited or insufficient. Indeed, both of the government’s flagship economic programs, The Big Push and 24-Hour Economy, explicitly recognize the significance of blended finance.

During a recent mission to Ghana, we engaged with several government / quasi-government agencies whose mandate is to mobilize private capital.

A prime example is the Ghana Infrastructure Investment Fund (GIIF), which was set up with an anchor investment of USD 345 million from the government. GIIF’s objective is to act as a catalyst for leveraging private capital by deploying debt, equity, and mezzanine funding to de-risk projects for local and international investors.

To date, GIIF has deployed USD 365 million across 13 transactions, which in turn leveraged approximately 10x that amount in commercial financing. GIIF’s success has enabled the organization to partner with organizations like the African Development Bank  (AfDB) and Agence Française de Développement (AFD) for lines of credit, demonstrating the usefulness of country platforms to official donors, Development Finance Institutions (DFIs), and Multilateral Development Banks (MDBs).

The Venture Capital Trust Fund (VCTF) and Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) are two other models of government-led blended finance initiatives. The VCTF is a government-established fund-of-funds that deploys seed capital to de-risk investments (in the form of equity and quasi-equity) and mobilize private capital across various locally domiciled venture funds.

Thus far, the VCTF has invested USD 33 million across 14 funds, which have gone on to raise over USD 270 million in additional capital from other investors. GIRSAL, with a balance sheet capacity of USD 45 million, de-risks agribusiness loans through credit risk guarantees and technical support, helping commercial banks increase their lending to the agriculture sector. GIRSAL works with 38 partner financial institutions and has guaranteed over USD 150 million in loans for agriculture.

Similarly, the Ghana Cocoa Board (COCOBOD), one of the most important organizations in Ghana’s cocoa industry, employed a blended finance strategy that enabled them to secure a USD 600 million syndicated facility, with significant contributions from entities like the African Development Bank (AfDB), Development Bank of South Africa (DBSA), and others. A concessionary loan of USD 100 million from the Japan International Cooperation Agency (JICA) altered the risk/return tradeoff for more commercially oriented investors, drawing in notable commitments from the likes of Credit Suisse and the Industrial and Commercial Bank of China (ICBC).

In an era of substantial ODA cuts, African countries must increasingly use their own balance sheets to de-risk projects and crowd in private capital. In this respect, as evidenced through the examples above, the Government of Ghana is leading the way.

Domestic pension funds also represent a large and underutilized source of long-term capital. Ghana’s total pension assets have doubled in size over the past five years, to a total of USD 5 billion in 2025. However, exposure to alternative asset classes such as private equity, venture capital, infrastructure, private debt, and real estate remains just 0.5% of assets under management. Blended finance can play a role here to create investable products and opportunities for this major source of long-term domestic capital.

Drawing on the InfraCredit Nigeria model, there are active discussions for a related credit enhancement scheme in Ghana. This new entity will provide credit guarantees for local currency debt, thereby increasing the attractiveness for institutional investors to invest in infrastructure bonds.

Adding to this landscape is the Ci Gaba Fund of Funds, a USD 75 million innovative structure aiming to blend donor and local institutional capital to back venture and private equity funds investing in small and medium-sized enterprises. By absorbing part of the early-stage risk, Ci Gaba aims to unlock institutional investments for high-impact sectors. Taken together, these initiatives illustrate how blended finance can turn Ghana’s capital scarcity into opportunity, channeling funds where they yield the greatest economic and social return.

While the momentum is promising, Ghana can unlock even greater potential through a few targeted policy actions such as regulatory modernization, transparency & cooridnation examples of which include: 1) Legal recognition of limited partnership (LP) structures, a standard globally for private equity and venture funds, would make it easier to establish investment vehicles locally; 2) The creation of a centralized, publicly accessible pipeline of investable projects; and 3) Establishing a national project preparation facility under the Ministry of Finance or the Ghana Investment Promotion Centre could help move high-potential projects from concept to bankability.

The promise of Ghana’s next growth chapter is an economy powered not just by recovery, but by resilience and innovation. The call to action is clear: public agencies and development partners must bring catalytic funding and technical expertise to the table, and commercial investors must look beyond short-term risk to the long-term potential of one of Africa’s most dynamic frontier market.

As Ghana seizes this moment, blended finance could become the defining tool of its economic renaissance, turning fiscal discipline into inclusive development, and transforming stability into sustained prosperity.

The piece showcases how blended finance is already being utilized in Ghana and discusses the policy changes needed to support its growth in the region.

How blended finance can catalyze Ghana's economic recovery

The Financiera de Desarrollo Nacional (FDN) is Colombia’s infrastructure development bank, offering innovative products and services to attract resources that facilitate the private sector’s participation in development projects in Colombia. They engage in the pre-investment phase to ensure a better investment climate and a quality pipeline of projects that are fiscally and financially viable, and provide funding for projects in the infrastructure sectors.

We spoke with Enrique Cadena, Vice President of Structured Finance at FDN about their priorities, the effects of diminishing foreign aid budgets, how they engage in blended finance, the opportunities they see for blended finance in Latin America, and more.

__Tell us about FDN. What are key priorities for the organization and what are you focusing on right now?__

FDN is a mixed-capital institution, majority-owned by the government. We combine public purpose with private sector discipline, operating with technical independence, strong governance, and a long-term development vision. Our mission is to close financing gaps, structure strategic projects, and mobilize capital to build a more sustainable and inclusive country.

We work across two complementary fronts. First, through project structuring, we turn complex ideas into bankable projects by designing robust technical, legal, and financial frameworks that unlock investment. And second, through project financing, we provide tailored solutions that respond to each project’s unique risks and development impact, ensuring viability and scale.

Over the past decade, FDN has played a catalytic role in some of Colombia’s most transformative infrastructure initiatives. From supporting the landmark 4G highway program—Latin America’s largest road infrastructure effort—to leading the structuring and co-financing of Bogotá Metro Line 1, we have helped reshape how infrastructure is planned, financed, and delivered in the country.

In recent years, based on our experience in project finance and project structuring, we are trying to replicate this experience in sustainability projects, especially in small and utility scale renewable energy, water, and telecommunications. Today, our key priorities include mobilizing concessional capital from public and philanthropic partners, alongside FDN’s own resources to unlock investment in emerging sectors, particularly renewable energy and the energy transition (small and utility scale), while also crowding in private and institutional investors to scale sustainable infrastructure.

With deep technical expertise and market credibility, FDN has become a regional reference in sustainable infrastructure finance. We see blended finance not just as a tool, but as a catalyst that allows us to combine public purpose, private capital, and concessional resources to turn complex challenges into opportunities for development.

__How do you engage in blended finance? Can you describe one or two blended finance transactions that FDN has been involved in?__

FDN is committed to advancing innovative financial structures that optimize financing schemes and catalyze private capital mobilization. A recent flagship initiative is the structuring and financing of an innovative project to deploy individual solar photovoltaic systems for vulnerable households in La Guajira—one of the regions with the highest levels of social inequality in the country. The project provides reliable electricity access to communities historically excluded from basic energy services, contributing to the long-term transformation of one of Colombia’s most underserved territories.

This transaction was [executed](https://www.financecolombia.com/aes-colombia-soluna-and-fdn-finance-solar-energy-project-for-la-alta-guajira-communities/) through a blended finance structure that combined concessional funding from the Climate Investment Funds (CIF), channelled through the Inter-American Development Bank (IDB), with a risk-mitigation instrument provided by FDN. This approach unlocked private investment and established a scalable, replicable framework for financing projects with meaningful social and environmental impact.

Another illustrative example is a solar initiative developed in partnership with the Tayrona Indigenous community. A defining element of this project is the active participation of the community not only in its development but also as equity investors in the solar park,demonstrating a model of inclusive ownership and co-creation that strengthens social license and long-term sustainability.

Both transactions used  blended finance structures combining concessional CIF resources, channeled through the IDB, with FDN’s risk-mitigation instruments. These structures successfully mobilized private capital and reinforced the viability of deploying similar models across high-impact, community-centered infrastructure projects.

__How do you measure the impact of blended finance transactions?__

FDN measures the impact of blended finance transactions through multiple lenses, aligned both with our institutional strategic objectives and the requirements  of concessional resource providers. Our impact assessment framework typically incorporates financial, environmental, and social dimensions.

From a __financial and risk__ perspective, we evaluate the level of private capital mobilized, the replicability of the structure across other projects or sectors, improvements in the project’s credit quality, and enhancements in financing conditions that  help make projects bankable.
From an __environmental__ perspective, we assess indicators such as avoided CO₂ emissions, new installed renewable energy capacity (MW), and the deployment of low-carbon technologies—for instance, the number of electric buses incorporated into fleets.

From a __social__ perspective, we measure the number of beneficiaries reached, jobs generated, and the extent to which vulnerable or underserved populations benefit , among other relevant indicators.

__What role do you see blended finance playing in financing infrastructure projects in LAC?__

Latin America and the Caribbean (LAC) is among the regions with the greatest need for sustainable infrastructure investment to enhance social well-being and support long-term economic growth. While the region has demonstrated strong capacity to generate well-structured, high-impact, and financially attractive projects in recent years, it continues to capture a relatively small share of global blended finance flows despite these favourable conditions.

In this context, blended finance has a critical role to play in helping the region unlock greater private sector participation in strategic sectors such as energy, mobility, education, and health. By addressing key barriers—including perceived risk, limited track record in emerging sectors, and affordability challenges—blended finance can help close financing gaps and enable more transactions to reach financial close.

Looking ahead, LAC has the potential to assume a stronger leadership role, not only by developing a robust pipeline of sustainable infrastructure projects but also by designing and executing blended finance structures that mobilize private capital at scale. This will ultimately allow the region to accelerate investment, expand access to essential services, and deliver broader social and environmental impact.

__As a development bank, has the trend of countries diminishing their foreign aid budgets affected FDN’s operations?__

Yes, reduced foreign aid envelopes have had a tangible effect. Concessional and grant-based resources remain essential for infrastructure development in Colombia, especially for upstream work such as project preparation, capacity building, and structuring support that makes projects bankable. One concrete example was the closure of USAID resources that had already been planned for certain topics and projects, aimed at leveraging and mobilizing public and private finance to support Colombia’s climate adaptation and mitigation targets. This created an immediate gap that required operational reprioritization and rapid mobilization.

However, we also viewed the shift as a strategic opportunity. It accelerated our efforts to diversify funding sources and deepen relationships beyond traditional donors. We moved quickly to engage alternative partners , like the Climate Investment Funds, the Green Climate Fund, as well as other multilateral and bilateral agencies, and explore complementary instruments, reducing reliance on any single channel. In short, while the international aid environment is clearly changing, we are adapting proactively—using this moment to broaden our coalition of allies and to build new bridges with a wider ecosystem of public, philanthropic, and private actors.

__What are some opportunities you see for blended finance in Latin America? What are some challenges?__

Latin America presents significant opportunities for blended finance because the region combines large infrastructure and climate investment needs with limited fiscal space. The strongest near-term opportunities are in sectors with clear development outcomes and scalable cash flows—such as renewable energy and grid upgrades, resilient transport, water and sanitation, nature-based solutions, and social infrastructure—where catalytic funding can de-risk projects and crowd in private capital.

At the same time, the market context is shifting quickly. As some traditional aid budgets tighten, the region is seeing “newcomers” in blended finance and development support. Gulf countries are increasingly visible in these schemes, and China has strengthened its presence in recent years. While some funding sources may be declining, others are emerging, creating a real opportunity to diversify financing sources and instruments, both concessional and non-concessional.

The key challenge is execution. This includes understanding evolving investor requirements, aligning incentives across partners, and ensuring that projects are truly bankable. In many cases, the decisive bottleneck is upstream—insufficient pre-investment preparation, weak risk allocation, limited data, and inconsistent impact frameworks. The priority is to build high quality, high impact pipelines from the earliest stages so projects become attractive, investable opportunities for a broader  range of financiers.

__How do you see FDN’s blended finance activities evolving in the future?__

FDN’s solid track record in resource mobilization, project structuring, and execution, positions the institution as a strategic partner for the designing blended finance solutions that enable high impact infrastructure projects. Recently, in a single year, FDN deployed concessional resources originally planned for disbursement over a five-year horizon—demonstrating the institution’s operational agility, execution capacity, and robust pipeline of viable projects.

Looking ahead, FDN aims to deepen and expand its role in the blended finance ecosystem, strengthening its leadership in Colombia while positioning itself as a regional benchmark for innovative, scalable, and high-impact blended finance transactions.

Our corporate strategy explicitly recognizes blended finance as a core pillar for achieving our development mandate. FDN will continue strengthening its capacity to design catalytic financial instruments, collaborate with concessional resource providers, and mobilize private capital toward sectors with high economic, social, and environmental impact. Through this approach, we expect to scale up blended finance operations, replicate successful structures across multiple sectors, and contribute to bridging the region’s infrastructure and climate investment gaps.


Read our member spotlight featuring FDN to learn about their priorities, the effects of diminishing foreign aid budgets, how they engage in blended finance, the opportunities they see for blended finance in Latin America, and more.

Financiera de Desarrollo Nacional (FDN) Member Spotlight

Financiera de Desarrollo Nacional (FDN) Member Spotlight with Enrique Cadena

We enter 2026 amidst a rapidly changing development finance landscape; ODA is under strain as public budgets tighten and countries focus increasingly on domestic priorities, while the scale of investment needed to address sustainable development continues to rise. Against this backdrop, we predict blended finance will need to evolve faster to: mobilize capital at scale, move beyond pilot approaches, and strengthen local capacity and ownership. Below, we make four predictions on how we see the market changing in the year ahead.

__1. Localization, localization, localization__ 
Just a few years ago, domestic capital mobilization was a peripheral priority for blended finance. After all, the “billions to trillions” agenda can only be realized by tapping into the deep financial markets of developed countries. Yet, amongst a rapidly changing development finance landscape, domestic private capital mobilization has become an increasingly important strategy. Convergence data reports that local capital continues to be a fraction of blended finance (under 20% of all blended finance flows), however we are seeing positive momentum, particularly from the private sector. As detailed in Convergence’s [State of Climate Blended Finance 2025](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view), local private investment increased from 17% to 19% between 2019-2021 and 2022-2024, driven by corporates and project sponsors.

Convergence has more deeply explored local capital mobilization trends on a country basis with a focus on Indonesia, the Philippines, and Vietnam, through the CC Facility Learning Hub report on [Domestic Capital Mobilization for Climate Finance in Southeast Asia.](https://www.ccfacility.org/learning-hub/domestic-capital-mobilization-climate-finance-southeast-asia-report) The report outlines how an enabling national policy environment combined with blended finance tools can support greater domestic capital in climate finance, highlighting successful examples across the region. For example, in the Philippines, supportive regulation such as the Electric Vehicle Industry Development Act helped create the right conditions for EV sector growth, while a blended $100 million financing package from the Asian Development Bank helped mitigate high upfront costs and catalyze private investment by Ayala Corporation, effectively mobilizing one of the countries' largest conglomerates into EV charging infrastructure and electric vehicles.

One approach that has increasingly been adopted is blended finance country platforms,which are country-led initiatives that mobilize development finance around national priorities and shift investment from one-off transactions to programmatic deployment. Country platforms have been applauded for their ability to i) align national development plans and policies with investment priorities, ii) aggregate projects to achieve scale, and iii) efficiently raise public, private and philanthropic capital. One of the most consistent models has been using public and philanthropic sources at the platform level while raising commercial capital on a more individual basis.

Recent examples of country platforms include Singapore’s Financing Asia’s Transition Partnership (FAST-P), which was launched in 2023. Anchored by $500 million in concessional funding from the Singapore government, FAST-P uses public and philanthropic capital to de-risk investments and crowd in commercial capital through thematic funds, with an ambition to mobilize up to $5 billion overall. Its first fund, the Green Investments Partnership (GIP), reached first close in 2025 with $510 million from a diverse group of public, private, and development finance investors, including the Monetary Authority of Singapore, Export Finance Australia, the International Finance Corporation, FMO, British International Investment, HSBC, and Temasek. Managed by Pentagreen Capital, GIP provides blended debt financing for marginally bankable sustainable infrastructure across Asia. We expect to see this trend continue in 2026, with the Green Climate Fund [announcing](https://www.greenclimate.fund/news/fourteen-new-country-platforms-announced-collaboration-gcf-drive-country-led-climate-solutions) the support of 14 new country platforms.

__2. Aligning development objectives and trade interests__ 
Fostering greater trade finance between developed and developing economies has long been one outcome of blended finance. Convergence Market Data records 109 blended finance transactions in trade finance, representing approximately $18 billion in aggregate financing.

High-income governments are increasingly seeking to align development strategies in low- and middle-income countries with the advancement of their domestic economic priorities. The United States, the United Kingdom, Sweden, the Netherlands, and Switzerland are among the countries exploring how development spending might reinforce national objectives related to trade, exports, and investment. These shifts reflect broader economic and political pressures, industrial policy priorities, and evolving global trade dynamics.

In this context, actors such as export credit agencies are emerging as potentially pivotal intermediaries at the intersection of development finance and national trade policy, given their mandate to support exports while managing risk.

A recent example is Export Finance Australia’s $100 million loan to the Emerging Africa & Asia Infrastructure Fund (EAAIF, formerly EAIF) (see Convergence case study [here](https://www.convergence.finance/resource/emerging-africa-infrastructure-fund-case-study/view)), a blended finance vehicle backed by the Private Infrastructure Development Group (PIDG) and managed by Ninety One. The financing will support sustainable infrastructure and renewable energy projects across the Indo-Pacific, particularly in South and Southeast Asia, while simultaneously advancing Australia’s trade and investment priorities in the region. The transaction illustrates how export credit agencies can bolster private investment for development outcomes while also advancing their core mandate of promoting national economic and strategic objectives

__3. Investment grade ratings, enabled by blended finance, as a prerequisite to investment__ 
As [recently explained](https://www.convergence.finance/news/yX74NqDSJrRb49zSA4pID/view) by Convergence, a key trend we expect to see more of in 2026 is the increased use of investment grade credit ratings to unlock institutional capital for blended finance structures. Institutional investors such as pension funds, insurers, and asset owners often rely on credit ratings to make investment decisions, yet many blended funds remain unrated due to structural complexity and lack of standardized methodologies. This limits the ability of larger institutional pools to participate at scale, especially in emerging markets where perceived risk is high.

Fund managers can obtain credit ratings through various approaches. Firstly, blended finance vehicles can pursue external credit ratings at the fund level. The EAAIF mentioned above is a leading example; the Fund obtained an investment-grade foreign currency long-term issuer rating of A2 from Moody’s in 2022, backed by a diversified portfolio, highly liquid assets, and highly-rated shareholders via PIDG. Together, this provided institutional investors with an independent assessment of the fund’s credit quality across a diversified infrastructure portfolio.

A second approach is pursuing an internal rating approach, and rating each project before capital deployment. Here, Impact A’s Global Fund adapted a transaction-by-transaction approach, spurred by its partnership with Legal and General’s alternative assets platform. As such, Impact A designed a credit framework closely aligned to Moody’s methodology, and ensured each deal on its lending platform could be rated using a transparent and rigorous process.

Lastly, some blended vehicles are seeking ratings for specific tranches, typically senior debt. Lendable’s MSME Fintech Credit Fund II obtained an investment-grade rating for its senior debt, supported by Lendable’s long track record and a capital structure in which 60% of capital is subordinated through junior tranches that absorb losses first. This tranche-specific approach enabled Lendable to attract fully commercial institutional investors to the company.

Convergence has identified investment-grade ratings (around BBB) as the most important driver of private investment mobilisation at scale, as reflected in three of its standardized Private Investment Mobilization Models ([PIMMs](https://www.convergence.finance/standardization)): PIMM 9 (Public Sector Blended Finance Debt Fund), PIMM 10 (Private Sector Blended Finance Debt Fund), and PIMM 5 (Project-Level Guarantees). These models demonstrate that it is possible to achieve investment-grade credit quality, and provide sufficient credit enhancement for private investors, without the conservative capital standards associated with AAA ratings typically prioritized by multilateral development banks (MDBs).

__4. Synthetic Securitizations to Unlock MDB Balance Sheet Capacity__ 
MDBs and development finance institutions (DFIs) are under increasing pressure to improve their headroom, or lending capacity, while increasing private sector mobilization targets, particularly as the US reduces its engagement in multilateral institutions. One approach to do this is via synthetic securitizations. We have seen this approach adopted by both global DFIs as well as their regional counterparts; the World Bank launched its own [securitization programme in 2024](https://www.devcommittee.org/content/dam/sites/devcommittee/doc/documents/2024/Final_DC2024-0004.pdf), while the IFC is promoting a [Warehouse-Enabled Securitization program](https://www.ifc.org/content/dam/ifc/doc/2024/WESP-Presentation-Seminar-IFC-Day-Nov-6-2024-External.pdf) to attract private investment. Concessional capital can provide additional protection; consider the recent example of the West Africa Development Bank (BOAD), which recently completed a XOF 160 billion (USD 270 million) multi-tranche securitization of a portfolio of performing non-sovereign loans through BOAD Titrisation, structured in senior, mezzanine, and junior tranches. BOAD retained the senior and junior (first-loss) tranches, while a AA+-rated mezzanine tranche of XOF 28.75 billion (around 18% of the structure) was placed with institutional investors, including a XOF 6 billion investment from the Africa Local Currency Bond Fund.The structure allowed BOAD to transfer part of the portfolio risk to third-party investors, while retaining the underlying assets on their balance sheet, with the end result of broadening local capital markets.

As the role of MDBs become even more important in the face of donor reductions, we envision securitizations playing an important role for domestic, regional, and global MDBs alike.

__Convergence’s Upcoming Work on these Topics__ 
Convergence will explore these themes further in the year ahead, beginning with the final [PIMMs](https://www.convergence.finance/standardization) Action Plan coming in Spring 2026, which identifies the most efficient and effective actions to mobilize private investment at scale and achieve the mobilization objectives in line with the outcome document of the Fourth International Conference on Financing for Development, held in Sevilla in June 2025. On the topic of local capacity, Convergence will be releasing three Country Deep Dive reports, building on the Domestic Capital Mobilization Report mentioned earlier, examining domestic capital trends in Indonesia, the Philippines, and Vietnam through the CC Facility [Learning Hub](https://www.ccfacility.org/learning-hub). Convergence will also release its Strategic Framework for Blended Finance in Spring 2026, outlining how governments can create enabling environments to scale blended finance and mobilize local capital across South and Southeast Asia.

Read our four predictions on how we see the market changing in 2026.

Four Blended Finance Trends in 2026

2025 was an exciting year for Convergence, we celebrated our tenth anniversary and hosted our inaugural [Global Blended Finance Forum](https://www.convergence.finance/news/1RCw5molHzANWIYmZS8kDX/view). To wrap up the year we’re sharing a list of our most impactful content of 2025, featuring the reports, case studies, blogs, and op-eds that our audience engaged with the most throughout the year.

## Top Report: State of Blended Finance 2025
 
Released in May, the State of Blended Finance 2025 found that the blended finance market remained steady through 2024. Blended finance deal flow was higher than the market average for the past five years, with 123 deals reaching close totaling $18 billion in financing. Deal sizes were also trending upward, with the median size increasing from $38 million (2020 - 2023) to $65 million (2024).
 
The report also found that in 2024 there was more buy-in from the private sector. Commercial capital from private sector investors outpaced development finance institutions and multilateral development banks in capital deployment, with $6.9 billion in investments in 2024.
 

[Read the report.](https://www.convergence.finance/resource/state-of-blended-finance-2025/view)

## Top Data Brief: Blended Finance for Nature-Based Solutions
 
This brief analyzes how blended finance has been used to support nature-based solutions (NbS) transactions, presenting insights from an analysis of transactions in Convergence Market Data and interviews conducted with industry stakeholders.
 
With the global annual investment gap to safeguard the natural environment exceeding $700 billion, there is a critical and urgent need to scale up financing for NbS. Public and philanthropic capital alone cannot meet this challenge. Convergence has recorded 48 blended NbS transactions over all time, totalling $4.7 billion in aggregate financing. Currently, public funds account for a total of 82% of the annual financing flows to NbS, with private finance accounting for the remainder.
 

[Read the blog to learn about key takeaways from the brief.](https://www.convergence.finance/news/7gw6dH8j0gnnFSArTS2dKK/view) 
[Read the full brief.](https://www.convergence.finance/resource/blended-finance-for-nature-based-solutions/view) (members-only)

## Top case study: Bac Ninh Waste-to-Energy Facility
 
This case study explores how the International Finance Corporation (IFC) used blended finance to improve the investability of the Bac Ninh waste-to-energy (WtE) facility in Vietnam.
 
Vietnam's waste management issues are increasingly urgent. However, the implementation of an adequate waste management system has been impeded by several factors. The resultant financing gap has created a market failure, whereby critical high-impact potential waste solutions like WtE technologies are unable to access the capital required for implementation.
 
IFC, using blended finance from the Finland-IFC Blended Finance for Climate Program alongside a market-rate loan for its own account, targeted the key market barriers to financing WtE facilities in Vietnam. Their participation, alongside grant funding support from the Government of Japan, bridged the financing gap by absorbing a level of construction and operational risk that otherwise prohibited the commercial viability of the Bac Ninh WtE facility.
 

[Read the case study.](https://www.convergence.finance/resource/bac-ninh-waste-to-energy-facility/view)

## Top op-ed: To mobilize private capital for sustainable development, we need standardization at scale
 
This op-ed by our Managing Director Chris Clubb, published in Environmental Finance, explores why standardization at scale is key to mobilizing private capital for sustainable development.
 
Chris discusses Convergence's <a href="https://www.convergence.finance/standardization">Scale Private Investment Mobilization Project</a> to standardize and scale up effective and proven Private Investment Mobilization Models, creating a framework that makes it easier for private capital to flow into developing countries for sustainable development.
 

[Read the op-ed now.](https://www.convergence.finance/news/4FrZlC4gpudxrLZVqDTQmQ/view)

## Top blog: Breaking Down the Billions: A Closer Look into Convergence’s Design Funding Program’s $2 Billion Mobilization Figure
 
This blog delves into how Convergence-supported blended finance solutions have successfully attracted substantial capital, breaking down the types of investors involved and the specific financial vehicles utilized. It also provides insights into what makes certain blended finance models effective and scalable, and highlights lessons learned from smaller-scale projects like Africa GreenCo, which showcase innovative approaches in high-impact sectors.
 

[Read the blog.](https://www.convergence.finance/news/i8cw2b4qvfrJwdie0dwm5/view)

To wrap up the year we’re sharing a list of our most impactful content of 2025, featuring the reports, case studies, blogs, and op-eds that our audience engaged with the most throughout the year.

Convergence's top articles and publications for 2025

Across the world, more than [675 million people still live without access to electricity](https://www.worldbank.org/en/topic/energy/overview), the vast majority in Sub-Saharan Africa. Yet the continent’s energy potential is immense. With solar energy now ranking among the most affordable power sources globally, distributed renewable systems,(e.g., mini-grids, agri-solar, and commercial and industrial (C&I) installations) offer a scalable path toward universal energy access.

However, mobilizing investment at scale remains a major hurdle, as [Africa currently receives under 2% of global clean energy finance](https://www.iea.org/reports/financing-clean-energy-in-africa/executive-summary). Bridging this gap requires innovative mechanisms that can attract commercial capital into high-impact sectors. This is where blended finance can make a difference, by using catalytic public and philanthropic capital to de-risk investments and crowd in private capital for sustainable, inclusive growth. 

__Proof of Concept Grant for the Mirova Gigaton Fund__

Convergence awarded a proof of concept grant to Mirova under the Gender-Responsive Climate Finance Window funded by Global Affairs Canada (GAC), for the design of the Mirova Gigaton Fund (MGF), a $400 million blended finance vehicle designed to scale high-impact distributed energy and climate investments in Sub-Saharan Africa, South East Asia, and Latin America. The Fund’s goal is to address energy poverty and advance an equitable, low-carbon world powered by clean energy.

MGF provides long-term, flexible debt, typically averaging $10 million per investment, to small and medium-sized enterprises (SMEs) across the Global South, bridging a critical financing gap for companies operating in underserved markets. The Fund targets commercially viable models across six key sectors: Commercial and Industrial (C&I) solar, solar home systems, telecom energy services, mini-grids, agri-solar, and emerging technologies such as e-mobility and battery storage.

The Fund’s blended structure layers junior equity and senior debt plus a super-senior tranche designed for institutional investors, complemented by a partial portfolio guarantee from the Swedish International Development Cooperation Agency (SIDA).

To enhance both financial and developmental outcomes, the Fund is supported by a Technical Assistance (TA) Facility that helps portfolio companies strengthen ESG practices, improve gender inclusivity, and build operational capacity.

__Climate and Gender Lens__

Climate and gender impact are embedded at the core of MGF’s mission.

Mirova has positioned MGF as a leading gender-lens investing vehicle. The Fund is officially 2X Challenge-qualified, meeting both the direct criteria (i.e.,entrepreneurship, leadership, consumption, and employment) and the indirect criteria for financial intermediaries. Approximately 50% of MGF’s portfolio is targeted toward 2X-aligned investees, with the remainder supported through the Fund’s TA Facility to achieve gender alignment.

This TA Facility provides hands-on support for investees seeking to implement gender action plans, improve workplace equality, and strengthen gender performance. By helping investees institutionalize gender equity, MGF not only advances inclusion but also drives stronger business results.

Finally, by making flexible, long-term capital available to SMEs, MGF advances climate mitigation outcomes while improving livelihoods.
Since its launch in 2023, the Fund has enabled first-time energy access for approximately 4.6 million people, half of them women, while avoiding 8 million tons of CO₂ emissions and supporting around 60,000 jobs across its portfolio.

__Takeaways from the Design Process__

Like other practitioners developing blended finance instruments, Mirova’s design process for MGF was complex and iterative. Their experience offers valuable lessons for practitioners on a similar journey, many of which are captured in the [case study co-published by Mirova and Convergence](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view).  Reflecting on MGF’s design process, there are at least 2 takeaways for practitioners going through a similar design journey as Mirova.

First, building agility into the vehicle structure while prioritizing simplicity and relevance to market context is crucial for long term success. Within the Convergence’s Blended Finance Accelerator programs, we sometimes find practitioners trying to develop very complicated vehicle structures. The best practices we have seen over time, and shown by Mirova’s case, is that blended structures work best when they are simple enough for relevant stakeholders to understand and also address the requirements of various investor groups. 

In Mirova’s case, the team designed a three layered structure - a simple modification of the basic two layer structure - with super senior debt (targeting private investors such as pension funds, family offices and insurers), senior debt (a mezzanine layer tailored to meet the needs of DFIs), and a catalytic junior layer (to pool capital from development agencies and foundations that play a catalytic role in absorbing initial losses). This was done to simplify the design and to meet the expectations of different stakeholder groups.

Also, Mirova’s initial design included a fixed interest rate based on the market trends in 2021 when the Fund was initially designed. Starting late 2021 through 2022 and 2023, interest rates began to rise. In response to the evolving interest rate environment, MGF explored options of floating interest rates or updating conditions offered to private investors. Since the market at the time was not comfortable with a floating interest rate design, MGF settled on offering higher interest rates to the two senior tranches without altering the fund structure.

Second, where possible, complementing the vehicle structure with innovative elements strengthens the overall vehicle structure and builds interest for the vehicle in the ecosystem. In Mirova’s case, they chose to pursue a combination of innovative financing mechanisms such as a credit rating for the senior most tranche (though it did not materialize as intended for reasons outlined in the [case study](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view)), innovative risk sharing agreements such as a partial portfolio guarantee, and customized technical assistance via their TA Facility. These elements together make the MGF’s structure unique, while improving acceptance of the vehicle among various stakeholders.

The grant from Convergence was instrumental for Mirova to continue scoping and refining the vehicle structure.  In addition to refining fund design, Convergence's support to the MGF also helped them finetune their TA facility design, enabling them to better integrate a gender lens into the Fund’s strategy and marketing. 

__The Way Forward__

The Mirova Gigaton Fund reached its third close in January 2025, with total commitments exceeding $330 million, a substantial share of which came from private investors. MGF is now firmly in its deployment and management phase, focusing on supporting the sustainable growth of its investee companies across Sub-Saharan Africa, South-East Asia, and Latin America.

MGF’s case exemplifies how a blended finance vehicle can be designed to accelerate clean energy transition in frontier and emerging markets. Ultimately, it shows that well-structured catalytic capital can crowd in commercial investment at scale, channeling much-needed financing into high-impact sectors otherwise left underfunded.

As the Fund continues to deploy capital and gender-focused TA support, it offers a blueprint for future climate finance vehicles seeking to combine financial returns, inclusion, and impact.


Designing for Scale: Mirova Gigaton Fund and Lessons in Climate and Gender Finance

Mirova Gigaton Fund 

Finance in Motion is a global impact asset manager that aims to deliver diversified, risk-mitigated returns with impact. Their financing solutions address climate change, biodiversity loss, and social inequality. Over 20 years they have invested across 44 high-growth economies and have local expertise from Latin America to Eastern Europe. 

We spoke with Sylvia Wisniwski, CEO at Finance in Motion, about how they engage in blended finance, their geographic and sectoral foci, impact measurement, how they apply a gender lens in their work, and more.

__How do you engage in blended finance?__

Blended finance is a core pillar of our approach. We manage and advise tiered alternative investment fund structures where catalytic funding from public or multilateral development bank/development finance institution investors helps de-risk commercial investments, providing an attractive risk-return to institutional investors. This allows us to mobilize significant private capital into emerging markets where financing gaps are largest.

__Do you have a specific geographic or sectoral focus when it comes to blended finance?__

Our blended finance activities focus solely on emerging markets in Latin America, Africa, Eastern Europe, and the Middle East. From a thematic point of view, we focus on green and social funds. Our green funds invest in climate mitigation and adaptation, biodiversity, sustainable agriculture, and circular economy. Our social funds focus on financial inclusion, supporting micro, small, and medium enterprises (MSMEs) and underserved groups. These are high-impact areas where blended finance can make a measurable difference alongside generating adequate risk-return for investors.

__Can you tell us about a specific blended finance deal Finance in Motion was involved in? What were the conditions and were certain instruments used and why?__

We manage or advise five private debt funds that are all blended finance vehicles with a total of more than EUR 4 billion in catalytic and private capital. These blended finance funds are evergreen. They are under constant fundraising — and have been very successful in raising private capital. 

Instead of de-risking single investments, we use credit enhancement instruments at the portfolio level. Through this approach, we use catalytic funding on a rolling basis as portfolio composition changes over time, maximizing the impact of the first- and second-loss capital. This enables the creation of flagship funds like the [European Fund for South-East Europe](https://efse.lu/) and the [Green for Growth Fund (GGF)](https://www.ggf.lu/) which both at present have over EUR 1 billion in assets under management. Around EUR 8 billion has been invested via these two funds alone over the past 15 years. 

Let us take a closer look at the GGF. It was initiated by KfW Development Bank and European Investment Bank (EIB) in 2009 with first-loss funding from the European Commission and the German government. International finance institutions like EIB, KfW, European Bank for Reconstruction and Development, Dutch Entrepreneurial Development Bank, and Development Bank of Austria invested senior share capital making it a true “Team Europe” initiative. The International Finance Corporation invested as well. The share capital enabled investments from institutional investors into the fund due to its de-risking effect. With this capital base, GGF creates impact in 19 countries spanning the Western Balkans to the Middle East. GGF offers renewable energy, energy efficiency, and energy security investment opportunities through indirect financing (loans via local partner banks) and direct corporate and project finance. 

In addition to the catalytic effects in the capital structure, we have also engaged recently in a guarantee arrangement benefiting the asset side of our funds. We signed an unfunded guarantee with the Swedish International Development Cooperation Agency for the GGF amounting to EUR 60 million to increase the rate of green lending in selected countries of the Western Balkans and the EU Eastern Neighborhood beyond what we could do with first-loss capital. The interesting piece is that we kept the guarantee component outside of the capital stack or fund structure, making operations much simpler and straightforward.

__How do you measure the impact and evaluate the success of blended finance transactions?__

All our investments must pass through the three lenses of impact, risk, and return. Each fund is guided by an impact framework aligned with global standards like the Operating Principles for Impact Management, the Sustainable Development Goals, International Capital Market Association Green Bond Principles as well as relevant regulations like Sustainable Finance Disclosure Regulation and the EU Taxonomy.  

We track metrics aligned to the respective impact objectives pursued per fund, including greenhouse gas emissions avoided, hectares of land under sustainable management, jobs supported, or SMEs financed. Success, of course, is measured not only by direct outcomes but also by systemic change. For example, whether new green market standards are adopted by our investees, or whether investees continue to issue green products beyond our support.

__Do you apply a gender lens in your blended finance work?__

Gender considerations are mainstreamed across our investment process, particularly for our social funds. For example, the [SANAD Fund for MSME](https://sanad.lu/) actively supports women entrepreneurs through financing and capacity building programs. To inform these investments, we assess gender impact during the due diligence process. We also track gender data, encourage financial institutions to expand services for female clients, and increasingly align our work with the [2X Challenge](https://www.2xchallenge.org/) criteria to ensure women benefit as business owners.

__What are some interesting or unexpected challenges or learnings that you’ve had in the blended finance space thus far?__

One key learning is that blended finance requires alignment between the expectations of different stakeholders, from catalytic investors focused on impact, additionality, and leverage, to institutional investors seeking risk-adjusted returns. This requires careful structuring of blended finance vehicles and transparent communication.

At the same time, the complexity of many blended finance structures may weigh heavily on operating costs. In view of current fee compression in the asset management industry globally, many blended finance structures can only be financially sustainable if they operate at large scale.

Another challenge is timing. While structuring blended finance instruments and mobilizing catalytic capital needs time, investor needs and capital markets may change quickly. To make both come together at an agreed point in time is an art!

__What advice would you give to other organizations looking to enter or scale their efforts in blended finance?__

There is a tremendous wealth of literature about different blended finance models. Don't start from scratch, but do proper market intelligence and study the lessons learned from different blended finance models. Recently, Convergence has conducted helpful research in this context through its Scale Private Investment Mobilization Project, listing [blended finance models with different purposes](https://www.convergence.finance/standardization).

At the same time, blended finance has substantially changed over the past years. Today, blended finance structures must crowd in private capital at scale right from the start. It is also expected that there is as little blending as possible, while generating much larger leverage compared to old blended finance models. We also observe increasingly a combination of different types of blending instruments, funded first-loss capital combined with unfunded guarantees or several layers of guarantees. Furthermore, there must be proof of additionality and of the “paradigm shift” that catalytic capital enables. This requires sound impact measurement and management systems.

__How do you see Finance in Motion’s blended finance activities evolving in the future?__

As we wrap up 2025, looking ahead, we expect to deepen our focus on climate and nature finance.  Given our geographic focus on emerging markets, catalytic capital will continue to play an important role. Our goal is to mobilize even larger pools of institutional capital by offering products that combine measurable impact with robust risk-return profiles. In short, we see blended finance evolving from niche innovation to mainstream practice and [Finance in Motion](https://www.finance-in-motion.com/) intends to remain at the forefront of that shift.

Finance in Motion Member Spotlight with Sylvia Wisniwski

Earlier this month, Convergence hosted its inaugural Global Blended Finance Forum in Washington DC to celebrate its 10 year anniversary.

The Forum brought together over 250 participants from the public, private, and philanthropic sectors, from over 40 different countries. It was hosted at a moment where blended finance hovers at an important inflection point. As ODA diminishes, it is an opportunity for blended finance to be more strategic, efficient, and fit-for-purpose. We saw the Forum as a moment to think about the progress that has been made and to define the next decade.

As such, the Forum covered a range of the most pressing issues in blended finance today, including the reality of diminishing ODA, the importance of local capital mobilization, the emerging role of insurance, the rising interest in guarantee structures, the imperative for standardization, and much more.

Participants were treated to a variety of formats and opportunities to network, including an optional blended finance primer, roundtables focused on specific topics, regional break out groups, in addition to panels and spotlight sessions.

__Below are some takeaways from the Forum:__

1. __A hunger for collaboration and community__: As the consequences of reduced foreign aid budgets begin to ripple through the blended finance market and beyond, a palpable sense of urgency, paired with a strong desire for community, defined the Forum. Attendees were eager to engage openly and substantively with each other. Blended finance is, by nature, a fragmented field, but the Forum made it clear that the practitioners driving these deals are determined to change that. Across three days, we heard from a wide diversity of voices and witnessed vital connections forming across sectors and regions. 

2. __Standardization was the word of the day__: Standardization emerged as a critical enabler for scaling blended finance by improving efficiency, reducing transaction costs, aligning objectives, fostering collaboration, and building investor confidence. Attendees recognized that blended finance must evolve from generating bespoke deals to also delivering standardized, scalable instruments to unlock the vast capital needed for sustainable development. This sentiment was echoed by Matt Kaczmarek, Head of Emerging Market Credit Strategy at BlackRock, during the Forum’s opening keynote, “To amplify impact and scale investment in emerging markets, we must standardize our approaches—building common frameworks, clear objectives, and investor-friendly structures that reduce complexity and enable efficient, large-scale collaboration.” ![Matt Kaczmarek](//images.ctfassets.net/4cgqlwde6qy0/1Ju3PSS5TYQEx7yfYpE9Yv/21a16885b3d57067a596e9d5f3b7ff98/IMG_6016.jpg) Many attendees are actively working on standardization. In a [session](https://youtu.be/cRubTG2SHhA?si=ZR-_Spszbq2zSc2q) on navigating declining ODA, Geneviève Brown, Executive Director of the Innovative Finance at Global Affairs Canada, discussed the G7’s recently launched [Common Principles for Private Capital Mobilization initiative](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), which provides a roadmap for transparency, alignment, and collaboration between public and private actors. She described how they are working with the [SCALED](https://scaledevelopment.org/) initiative to put those principles into action by identifying straightforward investment vehicles with standard terms that are familiar. Chris Clubb, Managing Director at Convergence, also presented Convergence’s efforts to move the field towards [standardization](https://www.convergence.finance/standardization) by identifying 12 Private Investment Mobilization Models as effective and efficient approaches to standardize and scale SDG and climate investment in developing countries. ![Blended Finance 2.0: Standardizing Investment Models for Scale](//images.ctfassets.net/4cgqlwde6qy0/4Eoogy3TFNMGqFUQu0gLkd/3ddde2952441a24c24ed60a015e3f4e4/IMG_6741.jpg) During the [session](https://youtu.be/boLYIA8aJDc?si=cJ-vpwOUiBEzj2Q8) Blended Finance 2.0: Standardizing Investment Models for Scale, panellists discussed the challenges to standardization, on balancing innovation and replication, and the importance of collaboration among donors, development finance institutions, and private investors. Susanna Gable, Deputy Director, Development Policy & Finance at Gates Foundation, made the point that for blended finance to meet its potential, it must standardize, “Standardization acts as a risk reduction tool for both donors and private investors by lowering transaction costs and accelerating deal phases. There is no other way to scale blended finance other than through standardization. It also sends a strong market signal that blended finance is serious, efficient, and impactful, though we must be mindful of its limitations in harder markets.” 
3. __Growing enthusiasm for the insurance sector__: With their deep expertise in risk modelling, product innovation, and capital allocation, insurers are a natural fit for blended transactions, yet they are relatively new entrants to the market. As a result there was a lot of enthusiasm around the potential of the insurance sector. The role of insurers and how best to engage them came up frequently throughout the Forum. At the Forum, Convergence launched, in partnership with the Global Asia Insurance Partnership (GAIP), [a Playbook on the Insurance Sector's Roles in Blended Finance at the Climate-Health Nexus](https://www.convergence.finance/resource/playbook-on-the-insurance-sectors-roles-in-blended-finance-at-the-climate/view). The playbook provides a practical roadmap for the insurance sector to act as risk advisors, capital providers, and enablers of tailored protection within blended finance structures that target climate-health resilience. It also explores how donors, DFIs and MDBs can support insurance participation in blended finance. A number of new initiatives involving the insurance sector were discussed, including the Insurance Development Forum, a coalition of large global insurance companies co-chaired by the World Bank and the United Nations Development Program. Mr. Kaczmarek discussed BlackRock’s partnership with them to develop the [Infrastructure Resilience Development Fund](https://www.insdevforum.org/press-release-insurance-development-forum-announces-first-close-of-infrastructure-resilience-development-fund-for-resilient-infrastructure-projects-in-emerging-and-developing-economies/?utm_source=chatgpt.com), which is focused on resilience and adaptation and provides insurance companies with a diversified emerging market infrastructure credit portfolio to complement their existing investment in developed markets. The Fund officially launched and began deploying capital in October. “Insurers manage $30 trillion in assets with only about 3% on average allocated to emerging markets and almost all of that in public market assets. A small allocation by this massive sector would send hundreds of billions of dollars of new investment to emerging markets,” stated Mr. Kaczmarek. ![Min Hung Cheng](//images.ctfassets.net/4cgqlwde6qy0/1LKJM8GIefI0LGHliyTZmF/c1b9e501e2faa1ddc93818076b082136/IMG_6768.jpg) In a [session](https://youtu.be/ILdb_yfo3PY?si=p_frY0xWVvwq6BKW) focused on insurance that explored the value insurers can bring as risk advisors, insurers, and investors to crowd in private capital, Min Hung Cheng, CEO at GAIP, highlighted the importance of integrating insurance expertise early in project planning and risk assessment, which requires standardized approaches and frameworks that facilitate early collaboration. “The insurance sector can bring a lot of value, but you can only maximize that and optimize that if you bring them in early. Don’t bring them in on page 105 of appendix 5. Bring them in earlier and they can do a lot more,” stated Ms. Cheng. To underscore the critical role insurance plays in making investments viable by managing risk, Ms. Cheng quoted the Prime Minister of Barbados, Mia Mottley, concluding that “What’s uninsurable is not investable. What’s uninsurable is not bankable either.” 
4. __Guarantees emerged as a popular tool__: Throughout the Forum guarantees were highlighted as an increasingly important instrument to mobilize private capital efficiently, especially amid declining ODA budgets and mounting fiscal pressures. ![Christian Brändli](//images.ctfassets.net/4cgqlwde6qy0/2M80rJR4AnSyUc6Rr7w0kW/2880fb13c058163ee747da47d628e413/IMG_6095.jpg) Christian Brändli, Head Private Sector Development at SECO, emphasized how guarantees, especially portfolio guarantees, are among the most effective blended finance tools in terms of mobilizing private sector funds per concessional dollar invested. He provided the example of Guarantco, the guarantee arm of the Private Infrastructure Development Group, which has demonstrated strong leverage by mobilizing $5.7 billion with only about $300 million of paid-in equity. Christian also made the point that the use of guarantees has the potential to enable a gradual reduction of concessionality, “They provide real-world evidence that the perceived risks of investing in emerging markets is often higher than actual risks. And if we apply guarantees repeatedly and systemically, you can track how concessionality levels decrease over time as the markets mature.” In some cases, concessional capital is not needed at all. Lasitha Perera, CEO at Development Guarantee Group, in a later [session](https://youtu.be/C0GnU3YElaY?si=Lp7tYnxmBMNtXR4X) on Financing Climate-Smart Infrastructure, described the establishment of the Green Guarantee Company that operates commercially without concessional capital and helps to mobilize private capital by providing commercially rated (BBB stable) guarantees.![Lasitha Perera](//images.ctfassets.net/4cgqlwde6qy0/4z327pGGcIYPHxDdPiyHza/8b38f16a0eeaeeb6466af1aeff5cd252/IMG_6875.jpg) In the same session, Maheen Rahman, CEO at Infra Zamin Pakistan noted how guarantees serve not only as risk mitigation but also as market signals to stimulate commercial lending in underbanked sectors. As the guarantees cover local currency exposures, they become a popular tool for local private companies as well as local banks to move into new lending markets. 
5. __A palpable optimism__: Finally, the overwhelming sentiment throughout the Forum’s two and half days was optimism. Despite the many challenges facing blended finance and the market's still-tentative growth, attendees expressed confidence in the decade ahead. The past ten years have laid the foundation and built a solid evidence base, crystallizing lessons learned and clarifying what works, what doesn’t, and what works better. Participants left with a shared intent to move decisively from experimentation to standardization, replication, and scale. ![Global Blended Finance Forum](//images.ctfassets.net/4cgqlwde6qy0/1Opz1FZrgRcVhO7h6iSj0v/56a97e3225442d68316c4ac3cee1ed46/IMG_7398.jpg)

Reflections and takeaways from the Global Blended Finance Forum

Global Blended Finance Forum takeaways and reflections

RDF Ghana promotes access to finance for Micro, Small and Medium Sized Enterprises (MSMEs) engaged in the business of agriculture and/or renewable energy, especially women-owned businesses.

We spoke to Yaw Oppong, CEO at RDF Ghana about their origins, impact, gaps and opportunities they see in the field, how they see their activities evolving in the future, and much more.

__Please tell us about the origins of RDF Ghana and what market failures you were set up to solve.__

RDF Ghana is an impact-driven institution, founded in 2016 by the Government of Ghana and Impact Fund Denmark. The creation of RDF Ghana was driven by the need to address the limited access to affordable credit for MSMEs in the agriculture and renewable energy sectors. RDF Ghana was also established to strengthen the capacity of Partner Financial Institutions (PFIs) and value chain actors, addressing constraints that have limited effective credit utilization. With seed funding from the Danish Government, we began as a wholesale fund channeling capital through PFIs, particularly rural banks, to underserved markets. We have since evolved into a dynamic institution also providing direct financing and capacity-building to smallholder farmers organized as outgrower businesses and Village Savings and Loans Associations (VSLAs). Our work systematically de-risks investments, builds climate resilience, and enhances the economic empowerment of women and youth.

__Describe your guarantee, line of credit, and technical assistance business. How do these offerings work together? What kinds of businesses / financial institutions do you typically partner with, and how does this help unlock additional private capital?__

__Credit Delivery - Direct and Indirect Financing__
RDF Ghana ensures capital reaches smallholder farmers through direct and indirect channels. We provide wholesale lines of credit to PFIs, mainly rural banks. We also offer direct input financing, which targets smallholder farmers organized into Outgrower Schemes and VSLAs, ensuring timely access to inputs and market linkages.

__De-risking With Credit Guarantees__
Our guarantee facility uses a 50% risk-sharing model (portfolio guarantee) to incentivize PFIs to increase lending to agriculture. This approach effectively unlocks capital for underserved borrowers by mitigating agricultural lending risks.

__Capacity-Building Through Technical Assistance__
Our Technical Assistance (TA) programs are designed to empower women and youth, strengthen the capacities of both farmers and financial institutions, and enhance environmental sustainability. Our flagship programs include:
- RDF Executive Management Essentials for RCBs (REMERB): Delivered with the National Banking College, this program closes critical knowledge gaps in corporate governance, Environmental, Social, and Governance (ESG) standards, risk management, and capital management, solely for rural banks.
- Agro Woman 360 (AW360): Holistically empowers rural women smallholder farmers through financial literacy, alternative livelihoods, and climate resilience training.
- Integrated Soil Fertility Management (ISFM): Promotes climate-smart agriculture by training farmers in input-use efficiency and sustainable soil health practices. 
 

__What would you say has been the impact of your work within the Ghanaian financial ecosystem? Feel free to share relevant examples that demonstrate the catalytic impact of our work.__

Our commitment to serving smallholder farmers has played a transformative role in strengthening rural finance and deepening Ghana’s financial ecosystem. Leveraging partnerships with PFIs and agricultural facilitators, we have deployed approximately $11 million in loans and technical assistance. These reached 30,000+ beneficiaries, including 60% women and 79% smallholder farmers. Our intervention has incentivized agriculture lending, built stronger institutions, created jobs, and scalable market opportunities: 
 
__Unlocking Capital__: Our 50% portfolio guarantee to PFIs like ABSA Bank Ghana, Kwahu Praso Rural Bank, and Agave Rural Bank have directly mitigated their risk, enabling them to collectively increase their agricultural loan portfolio. For every $1 that RDF has deployed in guarantees, we have mobilized $2.50 in private capital from our PFIs. For example, Kwahu Praso Rural Bank has increased its agriculture loan portfolio by over 50% since partnering in 2024. 
 
__Strong Institutions__: PFIs that completed our ‘REMERB’ governance training have strengthened their risk management frameworks and are better equipped to serve rural clients. 
 
__Job Creation__: While we directly reached 30,000+ beneficiaries, our interventions have supported an estimated 113,526 jobs, significantly demonstrating a catalytic effect on rural employment and livelihoods. 
 
__Scalable Models__: A strategic partnership with USAID served as a critical proof-of-concept for our transformative integrated outgrower model. What began as a pilot project with VSLAs has evolved into a scalable Outgrower Loan Scheme providing market linkages, weather insurance, and tailored financing to the smallholder farmers.

Additional positive tangible outcomes from our 2020–2024 strategic period include the following:
- 81.2% of MSMEs including agribusinesses reported higher incomes, driven by yield improvements ranging from 26% to 50%.
- Among farmers, nearly 60% achieved yield gains exceeding 50%, contributing to a 57% increase in average weekly produce sales. 
 

__Does RDF Ghana apply a gender lens when it comes to its blended finance activities? If yes, could you shed some light on how this is accomplished (metrics tracked and indicators)?__

Gender inclusion is core to our operations and is systematically integrated into the design and delivery of all our interventions. This commitment is reflected in our reach, as women account for over 60% of all RDF interventions, including 76% of TA recipients and 53% of loan beneficiaries. Building on this foundation, our flagship initiative Agro Woman 360 empowers women smallholder farmers through group structures and VSLAs. By strengthening financial literacy, business acumen, and climate resilience, the program has enabled over 50% of participating women to gain greater influence and respect within their families and communities. These efforts reinforce our mission to promote inclusive growth, reduce poverty, and build resilient livelihoods across our target communities.

__Tailored Financial Solutions__: Recognizing that one size does not fit all, we design context-specific solutions. In Northern Ghana, for example, where women dominate the shea, soya, and groundnut value chains, we introduced tailored credit facilities for Village Savings and Loans Associations (VSLAs). This directly expands finance access and strategically strengthens women's pivotal role in these critical agricultural value chains.

__Rigorous Measurement and Global Alignment__: Our approach is guided by clear metrics and global standards, including alignment with SDG 5 (Gender Equality) and the 2X Challenge Criteria. We track key performance indicators such as share of women beneficiaries across products and services, land ownership and control, and economic empowerment and decision-making power. These interventions not only promote inclusion but also serve as a powerful catalyst that enhances productivity, builds community-wide resilience, and drives systemic change within rural economies.

__As an impact-driven institution in the agriculture and renewable energy space in Ghana, what gaps/opportunities do you see in the Ghanaian financial ecosystem that blended finance can help unlock?__

Despite the progress made, agriculture and renewable energy remain underfinanced in Ghana, with high perceived risks. RDF has demonstrated that by strategically integrating capital and TA, we can prove the commercial viability of these underserved markets. We see four priority areas where blended finance can unlock transformative opportunities: 
 
__Expand Access to Finance__: A critical void exists for smallholder farmers lacking access to financing due to their small size, lack of track record, or collateral. An opportunity exists for blended finance to provide first-loss capital to de-risk the investments for impact investors. This would unlock capital to scale and create formal market linkages for many smallholder farmers. Expanding credit guarantee schemes will also encourage greater lending to these underserved sectors. 
 
__Renewable Energy Transitions__: A significant gap remains in financing renewable energy for productive use in agriculture (e.g., solar solutions for irrigation, milling, drying, storage). Grants or concessional capital can cover the high upfront costs and provide TA to de-risk the technology for both provider and end-user, which could ultimately unlock commercial debt and equity. 
 
__Climate Adaptation Tools__: There is an increasing demand for agricultural insurance, solar-powered irrigation, and climate-smart inputs. Blended finance can accelerate adaptation by providing lower-cost, longer-term capital and grants. 
 
__Data and Digital Infrastructure__: Targeted blended finance solutions can address structural weaknesses in agricultural financing, particularly the lack of reliable data, which leads to high-risk premiums. Using catalytic grants to support the development of integrated agricultural platforms could attract commercial lenders into the space.

__What does the future look like for RDF Ghana? How will your strategy and interventions evolve going forward? What role do you see yourself playing to help increase financing flows to the agriculture sector, which comparatively remains underserved?__ 
 
Transformative changes in rural economies require strong strategic collaboration. Going forward, we are looking to foster partnerships with like-minded investors, development partners, and private sector actors. Through these partnerships, we would amplify our collective impact, crowd in significant private investment, and drive the systemic changes needed to empower rural communities. Our collaborative efforts will concentrate on three strategic pillars:
 
__Build Resilient and Integrated Value Chains__: By integrating financing with targeted TA, we will strategically partner with agriculture actors, input suppliers, and off-takers to create viable models that de-risk the entire chain, ensuring access to quality inputs, training, and guaranteed markets. 
 
__Unlock Institutional Capital__: We will position ourselves as a trusted intermediary that can bundle smaller, risky agricultural loans into larger, more structured investment opportunities for institutional investors who seek impact and return, but lack the capacity to deal with fragmented, small-ticket transactions. 
 
__Champion Climate-Smart and Inclusive Finance__: We are committed to embedding climate resilience and gender inclusion at the heart of rural finance. We are looking to achieve this by:
- Scaling Proven Practices – Expanding our Integrated Soil and Fertility Management (ISFM) program to promote sustainable land use.
- Minimizing Climate Shocks – Broadening access to affordable agricultural insurance for smallholders.
- Advancing Gender Inclusion – Intensifying our targeted interventions to increase the economic participation of women and youth.
- Solar-Powered Agriculture – Focusing on solar-powered solutions for irrigation and other productive agriculture uses.

RDF Ghana Member Spotlight with Yaw Oppong