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To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC at the Fairmont Georgetown Hotel from November 3-5, 2025.

This first of its kind gathering will bring together a wide spectrum of blended finance practitioners to share insights, discuss market trends, and break down silos, with an aim towards defining the next decade of blended finance.

The Forum will offer a variety of programming focused on the most urgent blended finance issues including private sector and local capital mobilization, data transparency, and standardization. Attendees will also have the opportunity to participate in multiple networking opportunities designed to foster collaboration and inspire and galvanize them to shape the future of blended finance.

Convergence members get access to preferred pricing. Early bird member tickets are $500 (compared to $750 for non-members). To get the discounted rate, reach out to your relationship manager.

*Early bird registration is currently open. Follow the [event LinkedIn page](https://www.linkedin.com/showcase/global-blended-finance-forum/) for up to date information, including newly announced speakers, agenda items, and themes.*

Global Blended Finance Forum

To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC from November 3-5, 2025.

Convergence Global Blended Finance Forum

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__Tuesday, July 8, 2025, 9:30AM - 4:30PM CET, Paris, France__

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As an intermediate-level programme, the full-day training will combine blended finance and mobilization data, information and cases, insights from Convergence experts, notable speakers from major organizations, and technical experts in the field. Convergence members will participate in an inspiring, interactive, and practice-driven day of learning and knowledge sharing around blended finance as an approach to mobilize more private capital for the United Nations Sustainable Development Goals and Paris Agreement.

The agenda will feature:
- The State of Blended Finance 2025 – Market trends
- Blended Finance for Biodiversity – Deep dive
- Group exercise: Analyzing a Blended Finance Transaction
- Fundraising Deal Marketplace
 

This training is complimentary for members (one seat for Standard Membership, two seats for Market Builder Membership), USD 500 for additional member seats, and USD 750 for non-members. Please contact your relationship manager for more details or questions on your membership type.
 

*Register by June 18th to reserve your seat.*

In-Person Convergence Training for Blended Finance Practitioners in Europe (Paris, France)

Join us in Paris, France for a full-day training combining blended finance and mobilization data, information and cases, insights from Convergence experts, notable speakers from major organizations, and technical experts in the field.

Blended Finance Training in Paris, France

Inside the Deal: responsAbility Climate Smart Food Systems Fund

__Inside the Deal: responsAbility Climate Smart Food Systems Fund, June 3, 2025, 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 offer candid insights on structuring these intricate transactions.

In our upcoming webinar, we will feature responsAbility Climate Smart Food Systems Fund—This fund provides long-term expansion debt to innovative agribusinesses in Asia Pacific, Latin America and Africa with the goal of mitigating climate change, reducing food loss and promoting climate change resilience across the agricultural value chain.

During this hour-long webinar, responsAbility will walk us through the structure of the fund and their fundraising journey. We will also engage in, in-depth interviews with key stakeholders, uncovering valuable lessons learned along the way. The webinar will conclude with an open Q&A for all participants.

*This webinar is open to Convergence members only.*

Join us to learn about responsAbility Climate Smart Food Systems Fund.

Inside the Deal: responsAbility Climate Smart Food Systems

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Monday, May 26, 3pm – 4pm SGT (9am – 10am CET)

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Are you new to the Convergence platform? Join us for this interactive session to learn how to navigate Convergence’s blended finance data, deal flow, and events calendar. A team member will walk you through the different functions on our website using real world case examples. Together we will search the historical deals database for a particular transaction type, navigate the investor database to find the top 10 impact investors for a particular sector, and much more.

This session will use an interactive format to answer members’ frequently asked questions. Join us to discover how to use Convergence’s blended finance data in your day-to-day work.

This session is open to all Convergence members.

Member Q&A Session: How to Navigate Convergence’s Member Platform

Join us to discover how to use Convergence’s blended finance data in your day-to-day work.

Navigating Convergence’s Member Platform

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Join us for the virtual launch of our flagship State of Blended Finance report on __Wednesday, May 21 at 9:00AM ET__, where we will share updated data trends on the blended finance market from 2024. 

This year's report will also evaluate the market’s progress in overcoming key challenges, including the lack of private sector mobilization strategies amongst most donors, the need for better local capital mobilization, and the urgency of transparency and standardization. In light of the significant decline in ODA, this report will also explore how the blended finance market will be affected, and outlines calls to action for the field.

In addition to presenting highlights from the report, the virtual launch will also feature a panel discussion exploring how blended finance will fare in a landscape of reduced ODA.

The panel will include:

__Marie Aimee Boury__, Head of Impact Based Finance, Société Générale 
__Iftin Fatah__, Senior Program Officer, Development Policy & Finance, Gates Foundation 
__Sarah Marchand__, Director, Capital Solutions, British International Investment 
__Nick Darrant__, Special Advisor, Ministry of Finance, Rwanda

Explore past State of Blended Finance reports [here](https://www.convergence.finance/state-of-blended-finance). Our climate-focused State of Blended Finance report will be released in Fall 2025.

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Detailed agenda to follow.

2025 State of Blended Finance Virtual Launch

Join us virtually for the launch of the 10th edition of our flagship State of Blended Finance report on Wednesday, May 21 at 9:00AM ET, where we will share data, trends, insights, and recommendations from the report.

2025 State of Blended Finance Launch

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__Thursday, May 15, 2025 at 2:30PM - 3:30PM CET__

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Join the World Association of PPP Units & Professionals (WAPPP) for an insightful discussion on Mobilizing Local Currency Financing for PPPs, where experts will explore how local currency financing can enhance the sustainability, stability, and viability of infrastructure projects. The session will highlight key benefits such as reducing foreign exchange risk, strengthening domestic financial markets, and fostering long-term economic growth.

WAPPP 2025: Mobilizing Local Currency Financing for PPPs

Join WAPPP for this session exploring how local currency financing can enhance the sustainability, stability, and viability of infrastructure projects.

Mobilizing Local Currency Financing for PPPs

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Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets. During this interactive session, Convergence members will share details about their investment opportunities that are listed on our live deals database. This is a great opportunity to explore new and unique transactions and learn from developments in the broader blended finance ecosystem. 

Whether you're a seasoned investor or just starting, this webinar is tailored to everyone interested in discovering promising new ventures in emerging markets.

Save the date: __May 13, 2025, from 9:00 -9:45 AM ET.__ During the session, we will present two compelling deals from our live deals database:

- __Amazonia Impact Ventures Fund 1– Amazonia Impact Ventures__
Amazonia Impact Fund I (AIV) is a blended finance debt-vehicle, that lends to agricultural and forestry focused businesses with high impact potential, supporting vulnerable communities such as indigenous peoples in Colombia, Ecuador, and Peru. 

- __Cleantech Inventory Finance Facility– Offgrid.Finance__
Cleantech Inventory Finance Facility is a blended finance facility that on-lends capital to profitable solar and agricultural clean technology SMEs in East Africa. 

*This webinar series is exclusive to investors registered on the Convergence platform.*


Deal Connect: May 2025

Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets.

Blended finance solutions for Asia: Mobilizing local capital for sustainable impact

__Thursday, May 8, 2025, 9:00AM to 11:30AM SGT on the sidelines of Ecosperity Week in Singapore__

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How can blended finance help develop stable, self-sustaining projects to achieve the UN Sustainable Development Goals? In this event, we will delve into the latest blended finance insights  and discuss best practices for mobilizing local capital toward sustainable infrastructure and climate solutions across Asia.

Experts will demystify blended finance mechanisms beyond concessional capital, showcasing ways to crowd in private investment and how blended finance can serve as not only a catalyst, but also a transitional tool that supports the expansion of the broader sustainable finance ecosystem in the region.

*Due to limited capacity, this is an invite-only event. If you are interested in attending, please reach out to: asia@convergence.finance*

Mobilizing Capital for Blended Finance in Asia

Moblizing Capital for Blended Finance in Asia

Scaling the Insurance Sector’s Role in Blended Finance

__Wednesday, May 7, 2025, 3:30PM to 5:00PM SGT on the sidelines of Ecosperity Week in Singapore__

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Convergence and the Global Asia Insurance Partnership (GAIP) is currently developing a practical playbook to guide the insurance sector in engaging with blended finance to mobilize resources for sustainable development and support development of innovative products and solutions which can support business growth of the insurance sector. The playbook will focus on how the sector can support the de-risking and scaling of blended finance that can fund projects that not only enhance climate resilience but also mitigate health risks, such as building climate-resilient healthcare infrastructure and other large-scale initiatives that target health vulnerabilities caused by climate change.

In light of these findings, and as part of the process to develop the playbook, this session aims to bring together senior insurance executives to:
- Raise awareness of blended finance structures and explore possibilities of new product innovation supporting business and sustainability objectives 
- Explore challenges that have hindered insurance sector involvement.
- Brainstorm opportunities to accelerate insurance participation in blended finance in supporting the climate-health nexus objectives in the Asia region.

The event will begin with an presentation on the overview of blended finance, leading into the roundtable focused on three core areas of engagement: risk advisory, underwriting and coverage and investment, followed by a collaborative open discussion.

*Due to limited capacity, this is an invite-only event. If you are interested in attending, please reach out to: asia@convergence.finance*


Australian High Commission & Convergence Ecosperity Networking: Applying a Green and Orange Lens to Investment

__Tuesday, May 6, 2025, 6:30PM to 9:00PM SGT on the sidelines of Ecosperity Week in Singapore__

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The Australian High Commission in partnership with Convergence cordially invites you to join us for a panel discussion and networking reception at the Australian High Commission Singapore.

Expanding definitions of value and risk, in addition to fundamental shifts in the real economy have ignited considerable shifts in approaches to asset allocation. This event aims to demonstrate the commercial value of applying a green (climate) and orange (gender) lens to an investment portfolio. By drawing upon case studies from Southeast Asia, it will serve to encourage greater private capital towards climate and women led enterprise.

You will have the chance to meet with like-minded ecosystem partners across the public, private, and philanthropic sectors, and exchange ideas on advancing this agenda across this region. 

*Due to limited capacity, this is an invite-only event. If you are interested in attending, please reach out to: asia@convergence.finance*


Applying a Green and Orange Lens to Investment

__Wednesday, April 30, 2025, 5:30PM ET__

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Join the Convergence community for a networking happy hour with members and partners in Washington D.C. during DC Climate Week 2025. This event is an opportunity to engage informally with like-minded professionals and institutions in blended finance, expand your network, exchange ideas, and reconnect with fellow Convergence members. Don't miss this chance to create and build valuable connections!

*Registration is open on a first-come-first-serve basis, with a limit to 2 persons per organization.*

Member Networking Reception in Washington D.C.

Convergence Member Networking Reception in Washington D.C.

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__28 April – 2 May 2025 | Lagos, Nigeria__

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The Annual AVCA Conference was established to unite investors, entrepreneurs, policymakers, and business leaders for a common purpose: to showcase investible opportunities across the African continent. As the premier private capital gathering on the continent, the conference welcomes delegates from over 50 countries, serving as a platform for critical discussions on mobilizing
capital for sustainable growth. 

This year's theme – __Bold Moves: Powering 10x in Africa__ – reflects AVCA's mandate to catalyze transformative growth amidst complex market dynamics. It acknowledges current challenges—from consolidation and currency volatility to exit constraints—while emphasizing opportunities through innovative financing structures, dynamic value-creation strategies, and enhanced collaboration between fund managers, development finance institutions, and commercial investors.

Convergence is an industry partner of the Conference.

21st Annual AVCA Conference & VC Summit

Don’t miss the 21st Annual AVCA Conference & VC Summit in Lagos!

Africa's Green Economy Summit

Tri-Sector Associates (TSA) is an end-to-end impact firm that partners with government, private sector, and civil society organizations in Singapore and across Asia to tackle emerging societal challenges, with a focus on education/skill building, health, and climate. They do this by bringing these different sectors together through new collaboration models, including blended finance, and variations of pay for success (as a subset of blended finance), such as social impact bonds, social impact guarantees, and outcomes amplifiers. TSA utilizes a ‘for Asia, by Asia’ model to address the local nuances inherent in their work.

We spoke with Chris Glotfelter, Senior Project Leader at TSA about how they engage in blended finance, their priority sectors, challenges they have faced in the blended finance space, and more.

__How do you engage in blended finance? How has your approach evolved?__

TSA is committed to supporting the evolution of funding systems through cross-sector collaboration to ensure more (and more impactful) funding is allocated to projects that progress the Sustainable Development Goals across Asia. This requires innovative financing approaches and mechanisms, which is where blended finance comes into play. Our work focuses on three thematic areas: education/skill building, health, and climate/environment. 

As concessional capital is typically the more difficult part of the blended finance equation, especially as donor funding is being cut back, we come at it from this angle: working with foundations, family offices, and government to seed blended finance projects. This is typically the first time these organizations have waded into blended finance, so we allow them to dip a toe in by undertaking what we call a ‘sequential blended finance approach.’ Essentially, philanthropic capital goes in first to seed an opportunity and mature it to the point that it is commercial capital ready, often while structuring a mechanism to recycle the philanthropic capital into a later stage of growth or into a separate opportunity. This increases the leverage of each concessional dollar committed. Engaging with organizations in this way allows for a smoother transition into blended finance compared with the blended fund approach.

__Can you tell us about any specific blended finance projects/programs you’ve worked on?__

As a firm that began with a core focus on pay-for-success projects, later branching out to innovative and blended finance, we have quite a few examples. Two are outlined below, demonstrating how the funding models unlocked new benefits:

__A. Conservation International Recyclable Technical Assistance Facility (TAF)__ 
There is a significant pipeline of nature-based solutions (NbS) projects in the Asia Pacific region. However, many of these projects are not yet investment-ready because of knowledge gaps in the financial, operational, and technical aspects of these projects. This increases their perceived risk-level and does not fit the current preferences of NbS investors. Conservation International sought to accelerate the investment readiness of these projects and commissioned Tri-Sector to assess the landscape of potential blended finance options, taking into consideration the specific geography and nature of the issue. A technical assistance facility (TAF) was developed where capital allocated to projects would be recycled back into the TAF upon investment into the project. Through this structure, $12 million in philanthropic commitments were made, which sought to catalyze over $100 million in commercial capital for NbS projects. Due to the recyclable nature of the TAF, donors saw that their capital was highly catalytic, paying repeat dividends. Since then, 14 projects in seven countries across the region have received support from the TAF, with some being able to provide repayments back to the TAF.

__B. [Skills for Success](https://www.linkedin.com/feed/update/urn:li:activity:7247123147248816128/) Outcomes Amplifier Model__ 
Skills for Success is a pay-for-success project tackling the problem of Singaporean youth not in employment, education, or training (NEETs), by providing free-of-charge access to a skill building program with a monthly stipend to offset living cost considerations. Based on the [Outcomes Amplifier model](https://ssir.org/articles/entry/keeping_the_social_impact_going_when_a_pilot_project_ends), which was pioneered by Tri-Sector, additional funding is allocated to the program based on verified outcomes, which is then used as a pay-it-forward model to fund the next round of learners. 

In this model, Temasek Holdings (TH) and UBS Optimus Foundation (UBS-OF) provide the upfront funding to kick off the program and cover the monthly stipends. Generation Singapore, as the service provider, oversees the training program and provides soft skills training, along with placement services. Upon achieving verified outcomes, the Institute of Policy Studies (part of the Lee Kuan Yew School of Public Policy at the National University of Singapore) provides the outcomes funding to fund the next round. Capital is blended in the early stage of the program, with up to 30% of the funding coming from TH and UBS-OF, while at least 70% of the remainder of the funding comes from the government in the form of SkillsFuture funds. This cross-sector collaboration model is a key reason all the partners have bought into this project, with the view that this pilot can become replicable and scalable elsewhere in Southeast Asia.

__What innovative blended finance solutions have you recently implemented or are you currently exploring?__

Currently, we are working on a number of solutions. One of the most interesting, in relation to a key environmental challenge at present, is the use of philanthropic capital to support just transitions related to the early retirement of coal-fired power plants in Southeast Asia. The blending required here, and the additionality sought by philanthropic capital, is not straightforward and requires thinking outside the box to create a win-win-win situation for private, public, and philanthropic organizations.

__What sectors and focus areas are your priorities? Where do you see maximum potential to scale blended finance in the region?__

Recently we have seen a lot of interest in two areas: i) skill building; and ii) the intersection of climate and health. With regard to skill building, we have seen great interest in ethical income share agreements – those which do not make learners worse off than if they were able to access student loans or other educational financing – which typically requires some concessionality, rather than a pure commercial mindset. However, the area with greater potential is at the intersection of health and climate, where we are seeing an emergence of sub-themes including heat-related illnesses, water and food security, mental health impacts, and ocean-linked economic livelihoods. Although both health and climate are relatively well understood on their own, the themes at their intersection are just now coming into focus and being better understood, with new interventions being developed. Blended finance opportunities in this space will need to address how impact-first businesses can scale and become sustainable while being at the leading edge of adaptation solutions that are seen as less interesting (and commercially viable) than mitigation solutions. As a region that will be highly impacted by climate change, Southeast Asia is a strong focus in this space.

__How do you measure impact and evaluate success for your blended finance activities?__

We focus on both traditional and emerging impact indicators. On the traditional side, we track the leverage multiplier created using concessional capital to attract commercial capital. On the emerging side, we focus on the wider ecosystem impacts of blended finance, such as the new entrants to blended finance transactions and whether blended finance projects unlock wider incentives (e.g., the Monetary Authority of Singapore’s tax incentives for family offices1).

__Do you apply a gender lens in your work?__

Though we do not apply a blanket gender lens across all our work, we certainly have seen opportunities to make gender a meaningful part of the conversation. One recent example is the [Skills for Success program](https://www.linkedin.com/feed/update/urn:li:activity:7247123147248816128/) which was launched based on the Outcomes Amplifier Pay-for-Success model using funding from TH, UBS-OF, and the Institute of Policy Studies. Given females are highly underrepresented in technology-related roles in Singapore, one of the program targets was to have female participants reach parity with males over the course of the program. This has the added benefit of creating impact beyond the target beneficiaries (at-need youth), drilling down to who would benefit most from the program’s interventions.

__What are some interesting or unexpected challenges Tri-Sector Associates has faced while navigating the blended finance space?__

One of the unexpected elements that we have encountered has been large banks coming to us and wanting to do more in the blended finance space, but being faced with challenges in two areas: i) a lack of a voluminous pipeline of projects; and ii) not enough access to philanthropic capital to meaningfully support projects that are of a sufficient size to make sense for their clients. This shows us that more must be done in the ecosystem to build the components of blended finance before it can truly proliferate in the global market.

__What advice do you have for other non-profit and social enterprises interested in participating in blended finance?__

Being able to ‘speak the language’ of both commercial and concessional capital providers is critical to participating in blended finance. We find that when organizations cannot communicate efficiently, nothing gets done. If you are finding that this is the case, consider hiring an intermediary who can ‘translate’ between all the parties and create cross-sector alignment. This will naturally be an added cost, but will save time and money throughout the process, and many times is the critical factor in whether the project launches.

__Given TSA is a part of the larger Temasek Trust family, how do you collaborate with other entities internally to bring the collective experience of the Temasek group to clients and stakeholders and advance the ecosystem in Asia?__

We are so thankful to be a part of Temasek Trust’s ecosystem, which enables us to support meaningful causes across its network – both in Singapore and the wider region. Our collaborations take various forms: we introduce new ideas, they bring potential projects to us, or we co-create new initiatives. This versatile approach has been key to fostering strong partnerships, as engagement is shaped by the unique needs and opportunities of each collaboration. Likewise, our collective support for the broader ecosystem is not one-size-fits-all, as everyone requires a tailored approach to deliver meaningful impact.

The diversity of the Temasek Trust ecosystem allows us to shape projects that span commercial, concessional, and purely philanthropic capital, while drawing on deep thematic expertise. This convening capability, combined with the ability to bridge perspectives across different sectors, is one of TSA’s value-adds for our partners both within the Temasek Trust ecosystem and beyond. When like-minded partners come together with a shared purpose, the results can be truly transformative.

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

As our deal sizes increase over time, we envision more engagement with multilateral development banks and development finance institutions to support the quantum of funding required to finance these projects. Naturally, this could come in the form of a fund. We are especially seeing interest from organizations regarding the management of purely philanthropic funds (e.g., technical assistance facilities), these sit outside of the typical remit of fund managers on the commercial side who are also willing to blend some concessional capital into these funds. Given our strong relationships with philanthropists, this would be a natural next step for TSA.

1. Source: [MAS](https://www.mas.gov.sg/schemes-and-initiatives/fund-tax-incentive-scheme-for-family-offices)

Learn about how Tri-Sector Associates engages in blended finance, their priority sectors, challenges they have faced in the blended finance space, and more.

Tri-Sector Associates Member Spotlight

Tri-Sector Associates Member Spotlight with Chris Glotfelter

*Washington,DC | April 30, 2025* — Convergence announces the fifth and final cohort of its Gender-Responsive Climate Finance (GRCF) Window, at a special event hosted at the Embassy of Canada to the United States, on the sidelines of DC Climate Week. Two innovative blended finance solutions have been awarded grants for proof-of-concept and feasibility study, targeting gender-equitable climate action across the Pacific Islands and Sub-Saharan Africa.

The GRCF Window supports pioneering blended finance solutions at the intersection of gender equality and climate change in emerging markets. Its mission is to mobilize private sector capital at scale to fund climate mitigation and adaptation projects that are inclusive and gender-responsive.

“This final cohort illustrates the breadth of blended finance solutions at the intersection of gender and climate,” says Convergence Senior Director, Market Acceleration and Design Innovation, Leah Pedersen. “These vehicles will create meaningful impact for women in emerging markets, providing much needed opportunities and support while advancing key climate goals with positive regional and global outcomes.”

Funded by Global Affairs Canada, the GRCF Window has supported 11 blended finance solutions with a total of $2.9 million in committed capital. To date, these solutions have mobilized $362 million in additional capital from public, private, and philanthropic investors. While this marks the final round of funding, Convergence continues to provide hands-on portfolio support to grantees to help bring their concepts to market.

__Introducing the Grantees__

__Matanataki Pte. Ltd.__ has been awarded a proof-of-concept grant to develop and launch __Matanataki Pacific Fund 1__, a blended equity fund providing risk capital to reef- and ocean-positive small and medium-sized enterprises in the Pacific Islands. The fund will target the waste management, agriculture, fisheries, and tourism sectors, with a strong focus on gender equity. It will prioritize women-led businesses, promoting financial inclusion, leadership opportunities, and access to resources. The fund aims to include 50% women-led businesses in its pipeline of companies, support 1,200 metric tons per year of sustainably sourced seafood, conserve and restore over 17,000 hectares of marine area, divert 57,000 metric tons of green waste from landfills into fertilizer, train approximately 1,400 small farmers in reef-positive farming practices, and engage with 39 local partners.

This grant will support stakeholder engagement, development of governance and policy frameworks, legal and fund structuring, impact and gender action planning, design of a technical assistance facility, and readiness for fund launch.

__Alitheia__ has been awarded a feasibility study grant to design the __Eco Equity Investment Company (EEIC)__, a dual blended finance vehicle focused on reducing Africa’s gendered housing deficit. The vehicle will initially target Nigeria's housing market, investing in women-led or women-supportive businesses across the green construction value chain, promoting access to affordable and sustainable housing for women while mitigating climate impacts through reduced emissions and resource-efficient building practices. The EEIC aims to mitigate 500,000 metric tons of CO2 equivalent greenhouse gases over the project’s life cycle, support training for at least 300 women entrepreneurs in adopting sustainable practices, and deliver approximately 2000 passive homes to low income communities while ensuring home ownership remains with women.

With this grant, Alitheia will finalize vehicle structuring, conduct viability and market studies, build a financial model, complete risk analysis, develop an incubator pipeline, engage stakeholders, and advance fundraising efforts.

__About Convergence__ 
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.

On top of market acceleration through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.

__Media Contact__ 
Sijia Yi 
Head of Communications, Convergence Blended Finance 
sijia.yi@convergence.finance

Convergence announces the final cohort of its Gender-Responsive Climate Finance Window. Two innovative blended finance solutions targeting gender-equitable climate action have been awarded grants.

Convergence supports 2 innovative blended finance solutions

Convergence awards grants to two gender-responsive climate blended finance solutions

With global political stability [facing](https://www.worldbank.org/en/topic/fragilityconflictviolence/overview) significant setbacks in recent years, private sector development [will be](https://beamexchange.org/media/filer_public/67/4b/674b569e-d917-4c2b-a5fc-6133b2389619/msp_pse_in_fragile_and_conflict_affected_situations_primer_final_101321_2.pdf) critical to improving development outcomes and increasing social impact in fragile and conflict-affected situations (FCS). An increase in private investment can help create jobs, foster economic growth, and produce tax revenues to help governments provide essential services to their citizens. Nevertheless, socio-economic, political, and institutional challenges associated with FCS heighten the risks, costs, and complexities of doing business in these contexts. 

According to the World Bank, FCS is defined as two related but distinct concepts. Fragility refers to a condition where a region has extremely low institutional and governance capacity, impeding its ability to function, maintain peace, and promote economic and social development. Meanwhile, conflict represents a condition where acute insecurity arises from the use of deadly force by organized groups–whether state forces, non-state actors, or irregular entities–with a political agenda.

Blended finance has emerged as a method to support responsible private sector development in FCS, complementing reforms to improve the business environment. The value of blended finance is its ability to unlock private investment in new markets or sectors perceived as too risky by private investors. The use of blended finance remains limited within FCS. Using the to select jurisdictions that have appeared consistently from 2019-2023, according to Convergence's Historical Deals Database (HDD), there have been 54 blended finance transactions across 19 jurisdictions, totalling approximately $4.5 billion in aggregate financing. [World Bank’s FCS list](https://www.worldbank.org/en/topic/fragilityconflictviolence/brief/classification-of-fragile-and-conflict-affected-situations) to select jurisdictions that have appeared consistently from 2019-2023, according to Convergence's Historical Deals Database (HDD), there have been 54 blended finance transactions across 19 jurisdictions, totalling approximately $4.5 billion in aggregate financing. 

This article provides a snapshot of our latest member-only data brief on blended finance for FCS, including opportunities and challenges related to increasing the use of blended finance in these regions. 

*Click [here](https://www.convergence.finance/resource/blended-finance-in-fragile-and-conflict-affected-situations/view) for the Blended Finance in Fragile and Conflict-Affected Situations data brief (paywall).* 

## Highlights from the brief:
 

__31% of blended transactions in FCS are in the energy sector__

Most blended finance transactions in FCS target the energy sector, mirroring the broader blended finance market, as this sector tends to be the most commercially viable. In FCS, most energy sector deals take place within the renewable energy sector. 

The [ability](https://ieg.worldbankgroup.org/sites/default/files/Data/reports/chapters/fcs_eval.pdf) of blended finance to broaden investments in sectors that would not otherwise attract funding is crucial for FCS, where economies often depend heavily on extractive industries and agriculture. Blended finance can help overcome challenges associated with an overreliance on these industries by directing private capital to sectors that promote economic diversification, resilience, and stability. However, its deployment must be strategic rather than indiscriminate.

One example of an energy sector transaction was [Nuru](https://nuru.cd/), a company improving electricity access and affordability in the Democratic Republic of the Congo, where less than 20% of the population has access to reliable energy. In 2023, Nuru secured $50 million to [provide](https://disclosures.ifc.org/project-detail/SII/45543/nuru-drc) up to 15 MW of generation capacity across three cities through solar hybrid mini-grid projects, reaching 28,000 households. To improve the company’s commercial viability, the transaction leveraged a mix of concessional instruments, including concessional equity from the Blended Finance for Climate Program, a collaboration between Finland and the International Finance Corporation (IFC), and concessional capital from the Global Energy Alliance for People and Planet and the Renewable Energy Performance Platform. This mobilized additional investments from IFC, and a range of other private and philanthropic investors. The company also secured a [full guarantee](https://www.miga.org/press-release/miga-backs-nurus-solar-hybrid-mini-grid-projects-drc) from the Multilateral Investment Guarantee Agency to cover expropriation, transfer, and war and civil disturbances risks, alongside a results-based financing grant from Clean Energy and Energy Inclusion for Africa for the projects in Goma.

![fig1 blog](//images.ctfassets.net/4cgqlwde6qy0/17L1Coc9GaJDULoDwx7CTt/27e2ce32ae04a03d97a8b93c4c540ebd/fig1_blog.png)
*Figure 1: FCS transactions vs. the overall blended market by sector*

__Concessional debt/equity is the most common archetype, followed by technical assistance (TA) and guarantees/risk insurance__

The blending archetypes deployed in FCS follow trends similar to those in the overall market. The primary purpose of TA [is](https://www.convergence.finance/resource/blending-with-technical-assistance-2023/view) to improve the operational capacity of investees and stakeholders throughout the value chain, lower transaction costs, and foster a more supportive environment for investors. In the specific context of FCS, the role of TA [is](https://www.fmo.nl/fragile-states) further refined and can be used to support investees' compliance with investment requirements, create sector fundamentals and capabilities, assist government programs, and improve the conflict sensitivity of investments.

![fig2 blog](//images.ctfassets.net/4cgqlwde6qy0/6isdbwNQNIE19zIhZsfvt2/f269a74f9557b9f92d66f409398b9578/fig2_blog.png)
*Figure 2: FCS transactions vs. the overall blended market by archetype*

## Challenges and opportunities for blending in FCS:
 

__To reduce structural, financial, and security barriers in attracting private investment in FCS, increase focus on awareness, pipeline development, and de-risking strategies__

Numerous barriers impede private investment into FCS, including limited existing local markets, a small pipeline of bankable projects, structural complexity of formal and informal institutional arrangements, and lower risk-adjusted returns. Blended finance can reduce these challenges by leveraging different forms of concessional capital to address specific barriers. For example, design-stage grants can provide the funding needed to align investment decisions with local contexts and promote collaboration among capital providers to reduce costs and allow for risk sharing. Ultimately, for blended finance projects in FCS to be sustainable in the long-term it is important to continuously engage with local communities and development actors to ensure alignment with local efforts. 

__To ensure that investments do not exacerbate fragility, use TA for conflict sensitivity analysis and select investment opportunities__

To avoid exacerbating the conflict, investing in FCS requires careful design and conflict sensitivity to avoid reinforcing existing grievances and disruptions to local systems. Despite their importance, conflict-sensitive strategy implementation often [fails](https://www.fmo.nl/fragile-states) or is applied post-investment, rather than being an integrated and important criterion throughout the investment selection process. According to Dr. Josie Lianna Kaye, Chief Executive Officer of TrustWorks Global, blended finance can reduce these investment risks by using TA to conduct conflict-sensitivity analysis, which can help companies better deal with the risks and challenges associated with the conflict context in which they operate. Moreover, using TA in this way ensures that the transaction prioritizes conflict sensitivity and can help establish a more stable investment environment. For investors, conflict-sensitivity analysis can help identify and design interventions that foster stability and development and provide a clearer understanding of conflict dynamics. These insights can help investors determine if their support can create meaningful change at the individual, sectoral, or broader community level in the FCS.

Learn how blended finance can be used in fragile and conflict-affected situations to improve development outcomes

Using blended finance in FCS to improve development outcomes

Using blended finance in fragile and conflict-affected situations to improve development outcomes

*This op-ed was originally published in [The Business Times](https://www.businesstimes.com.sg/opinion-features/local-investors-needed-combat-climate-change-asia).*

__*Written in collaboration with [Deepali Khanna](https://www.rockefellerfoundation.org/profiles/deepali-khanna/), Head of Asia, The Rockefeller Foundation.*__

The climate crisis is intensifying and compounding an already challenging economic environment of high inflation and pressure on national budgets. With an estimated financing gap of over USD 800 billion per year in developing countries in Asia for climate mitigation and adaptation, there is a critical need to mobilize private sector capital towards climate action at scale. For this to happen, we need to strengthen and grow domestic capital markets in Asia. 

ASEAN and India account for approximately 50% of the financing gap mentioned above. Both have shown strong GDP growth over the last decade, with good savings and investment rates, and sound banking and financial sectors. The domestic capital pool of money from bank deposits, sovereign wealth funds, and public pension funds is estimated to be at USD 7 trillion. There is a massive opportunity to mobilize these local sources of capital towards achieving the region’s climate finance needs.

Local capital participation has distinctive advantages. It has a deeper and more nuanced understanding of local investment landscapes and provides confidence to foreign investors, thus reducing risk perceptions and risk premiums. Moreover, the foreign investors often invest using local currency, thus avoiding currency hedging costs which impact returns on investments for international investors, especially in adverse macroeconomic conditions. Finally, local capital participation stimulates private sector development and builds capacity among local financial institutions into impactful sectors, such as climate finance. 

Despite the clear benefits, participation from local capital remains below what’s needed. There are a few reasons for this: investors’ commitment to domestic development projects has been constrained by regulatory limits, their unfamiliarity with alternative asset classes and how to assess and mitigate risk, low levels of capitalization, and, for pension funds, a fiduciary responsibility to preserve capital.

So how do we mobilize domestic capital? [Blended finance](https://www.convergence.finance/blended-finance), the use of public and philanthropic capital to attract private capital into transactions aligned with sustainable development, is one way to mobilize new sources of capital from local private investors and scale up climate finance.

Historically, blended finance has primarily attracted cross-border flows. This is largely due to the dominant presence of multilateral development banks, development finance institutions, and donors based in developed countries. On average, only 6% of all blended finance flows per annum in Southeast Asia have originated in the target investment country. 

To scale up local capital mobilization with blended finance, there is a need to build the capacity of local stakeholders, develop an investible pipeline of transactions and reduce time to market by focusing on standardization of deals which meet international standards, and create an enabling environment for blended finance that can attract cross-border and local private capital to flow into climate action and other areas where it currently is not. 

Initiatives are underway to address these needs. For example, the Green Climate Fund (GCF) and Nationally Determined Contributions partnership has developed the [Climate Investment Planning and Mobilization Framework](https://www.convergence.finance/resource/climate-investment-planning-and-mobilization-framework/view), which aims to assist country governments with a step-by-step guide for supporting upstream investment planning, such as identifying climate goals, as well as downstream activities, such as identifying project pipeline and financing partners from both local and global investors. The Framework is designed to identify the gaps in capacity or information that are preventing climate finance mobilization and to facilitate the successful implementation of climate change projects and programs with the best financial partner.

Another example is The Rockefeller Foundation’s support of two blended finance initiatives in Asia: Convergence’s [Asia Climate Solutions Design Grant Window](https://www.convergence.finance/design-funding/open-window/Asia-climate-solutions-design-grant) (ACS) and the [Catalytic Climate Finance Facility Learning Hub](https://www.ccfacility.org/learning-hub), a joint initiative by Convergence and the Climate Policy Initiative. 

ACS is a pioneering design funding program that supports the development and launch of innovative blended finance solutions that mobilize private capital for the climate transition in Asia. The funding from The Rockefeller Foundation for ACS will support solutions with innovative models of mobilizing local capital in key markets like Indonesia, the Philippines, and Vietnam. Meanwhile, the Learning Hub aims to gather key data trends, policy initiatives, and draw on critical insights from the ACS portfolio to offer best practices for mobilizing domestic capital. This includes highlighting successful and replicable blended finance structures that have attracted domestic investment to climate finance projects, as well as enabling policies and regulations.  

Ultimately, attracting higher levels of domestic sources of commercial capital into climate transactions will depend on both domestic donors (e.g., national and state governments, local philanthropies and foundations, and national development banks) and international donors (e.g., the Development Assistance Committee of the Organization for Economic Co-operation and Development (OECD), international philanthropies, and climate funds like the Green Climate Fund) deploying concessional resources in a manner that is more interconnected and more explicitly focused on blended finance and private sector mobilization. With just five years until the deadline for meeting the Sustainable Development Goals, there is no time to lose.


To combat climate change in Asia, we need local investors 

__San Francisco and Toronto, March 24, 2025__—The Catalytic Climate Finance Facility (CC Facility) has launched its fourth call for applications for high-impact, scalable, and market-ready blended climate finance solutions in developing economies.

The Facility is welcoming new submissions, which can be made through the [CC Facility website until April 24.](https://www.ccfacility.org/apply)

This cycle will target sustainable agriculture solutions in sub-Saharan Africa and South Asia, as well as other climate adaptation and mitigation initiatives across the Asia-Pacific region.

Set up in 2023, the CC Facility offers up to USD 500,000 in grant funding for each selected project. The program also provides tailored technical assistance to all grantees, including support on strategies, fundraising, and operations to help applicants overcome market barriers and effectively mobilize private capital for climate action.

To date, the CC Facility has awarded over USD 4 million to test, structure, launch, and expand 11 blended climate finance solutions globally.

These solutions support a range of initiatives, such as climate-resilient agriculture, marine conservation, biodiversity, climate adaptation, and renewable energy. They do so via blended finance solutions, including debt, project finance platforms, and venture capital.

“The CC Facility highlights the increasing potential for unlocking private capital in a pivotal year for demonstrating the value of sustainable development investments,” said __Barbara Buchner, Global Managing Director of Climate Policy Initiative (CPI)__. 

“It helps mobilize investment in under-financed areas, including private and broader domestic resources, to develop solutions that address the worst impacts of global warming,” she added.

“With foreign aid budgets being cut across the board, initiatives like the CC Facility that are focused on mobilizing private capital to the places and challenges that need it most are more important than ever,” said __Joan Larrea, Chief Executive Officer (CEO) of Convergence__.

“We are thrilled to be backing mechanisms that have the potential to be ecosystem and market builders delivering outsized and lasting impact to the countries and communities they are located in,” explained Larrea.

Amid calls for the existing global climate finance architecture to evolve, the CC Facility is a partnership between Convergence and CPI that aims to provide holistic solutions to accelerate the implementation of blended finance structures while catalyzing private capital.

__Register for the information session__ 
To learn more about the program, including eligibility and selection criteria, and ask our team questions, you can participate in our information session on April 9. To accommodate different time zones, the webinar is offered at two different times. [Register here](https://www.ccfacility.org/news-and-events/application-round-2025-1). 

## ABOUT THE CATALYTIC CLIMATE FINANCE FACILITY
The Catalytic Climate Finance Facility (CC Facility) is a solution to scale climate finance by filling a market gap in mobilizing private capital. The CC Facility provides a suite of acceleration services to market-ready blended finance vehicles in developing economies to help them reach scale. Through grant funding, technical support, and a learning hub, the CC Facility accelerates the implementation of high-impact financial structures, while providing resources to the broader ecosystem on how to best catalyze climate finance. The initiative is a partnership between Climate Policy Initiative (CPI) and Convergence.

## MEDIA CONTACTS
__Sijia Yi__ 
Head of Communications 
Convergence Blended Finance 
sijia.yi@convergence.finance 
 
__Júlio Lubianco__ 
Communications Manager 
Climate Policy Initiative 
julio.lubianco@cpiglobal.org

CC Facility launches new call for applications targeting sustainable agriculture and climate adaptation

CC Facility launches new call for applications

Recent years have demonstrated an increase in blended finance transactions, not only in the number of overall transactions launched but also in the scope of stakeholders involved. We see a similar upward trend in gender-related blended finance deals.

For example, according to our database, 412 out of 1346 (31%) blended finance deals have gender as one of their targeted Sustainable Development Goals (SDGs), representing a total commitment of __$49 billion__ out of the $248 billion market. On average, each investment in this space is sized at $15 million, with a total of 944 different investors.

__The Growth of Gender Deals: Trends and Patterns__
![genderdeals](//images.ctfassets.net/4cgqlwde6qy0/6M6kGIjKO7aebfVAMM9MYP/f88b6b2b787171bf1d99f1b89b7ae1d8/genderdeals.png)
While the number of gender-focused transactions surged significantly between 2021 and 2023, the total annual capital committed has remained relatively flat. This suggests a shift in the gender-related investment landscape, where more investors are injecting capital, but the size of their investments is relatively smaller. Private sector actors, particularly commercial and impact investors, increasingly engage in gender-related investments. For example, they invested around $12 billion out of the total of $49 billion in gender-related blended finance transactions. Over the past three years, more than 167 unique private-sector investors participated in 163 gender-related deals.

__Leading Investors: The Public Sector’s Persistent Influence__
![genderinvestors](//images.ctfassets.net/4cgqlwde6qy0/3tGibQPZj9wqZTDC9u7pMa/683685a97e3ae6a3f1a9617226c3853a/genderinvestors.png)
However, despite the rising involvement of the private sector, multilateral development banks (MDBs) and development finance institutions (DFIs) still top the league tables for gender-related blended finance deals by number of transactions. Key players who have invested in more than 50 gender-focused blended finance deals are Dutch FMO, the International Finance Corporation, and the US public agencies: the United States Agency for International Development and the United States International Development Finance Corporation.

FMO is among the most active development banks in the gender-related blended finance space. For example, the [Insitor Impact Asia Fund II](https://www.fmo.nl/project-detail/62056) (IIAF II) is a venture capital fund that invests in early-stage businesses to enhance accessibility to essential goods and services for low-income populations in Cambodia, India, and Pakistan. With a strong commitment to gender inclusion, IIAF II has qualified as a 2X Flagship Fund. It reached an interim close of $42 million in 2022, backed by key investors, including our member, British International Investment, which provided $15 million as anchor investment, and $10 million of concessional capital by FMO.

__Commercial Investors Role__

Commercial investors are increasingly participating in gender-related blended finance deals, albeit at smaller amounts and at a slower pace. For example, [BancoSol](https://www.bancosol.com.bo/) issued Bolivia’s first gender bond to empower women-led Micro, Small and Medium Enterprises (MSMEs) in 2024. The local currency gender bond raised $30 million to expand credit for 4,500 women-led MSMEs, especially in rural and Amazonian regions. Our member, IDB Invest supported the issuance with a 50% partial credit guarantee, while We-Fi, provided a $200,000 performance-based incentive linked to BancoSol’s women-led SME portfolio growth.

Another promising trend we’ve been witnessing in the last few years is the intersection of gender and climate finance. For example, at the last G7 Summit in Italy, members of 2X Global and other financial institutions pledged $20 billion toward gender-lens investing in developing countries, with a particular emphasis on projects addressing both gender and climate challenges.

While MDBs and DFIs have long been the backbone of gender-focused blended finance, the reality of diminishing official development aid underscores the need for a more diversified approach. We can no longer rely on a single actor—every stakeholder has a vital role to play. Moving forward, collaboration across the public, private, and philanthropic sectors will be essential to scaling impact and ensuring that capital reaches those who need it most. The increasing involvement of private sector actors signals a shift toward greater market participation, but there is still considerable potential for growth, particularly in aligning commercial investments with targeted gender-lens strategies.

*Please view our [gender equality page](https://www.convergence.finance/about/themes) for more gender-related blended finance resources, including stats on gender deals, grant programs, trainings, publications, and more.*

Recent years have demonstrated an increase in blended finance transactions, not only in the number of overall transactions launched but also in the scope of stakeholders involved. We see a similar upward trend in gender-related blended finance deals.

Top Investors in Gender-Focused Blended Finance Deals

Who Are the Top Investors in Gender-Focused Blended Finance Deals?

According to the [*2025 Macroeconomic Performance and Outlook Report*](https://www.afdb.org/en/documents/publications/africas-macro-economic-performance-and-outlook-report) released by the African Development Bank (AFDB), East Africa is projected to be the fastest-growing region in Africa, with GDP growth expected to rise from 4.4% in 2024 to 5.3% in 2025 and further increase to 6.1% by 2026. However, the underserved investment market in East Africa is immense. In response, new business models are emerging to address the barriers to financial inclusion in the form of mobile banking, digital lending, and other fintech innovations. Achieving success in reaching the underserved with appropriate services tailored to their needs includes focusing on enterprising individuals plus small and growing businesses.

## adOpes Microleasing Fund
In 2023, the SDG Impact Finance Initiative, with the support of Convergence, awarded a $200,000 expansion grant to adOpes under the Innovation Window. The Design Funding was specifically used to support expansion of the adOpes Microleasing Fund, which provides 9 to 18-month lease-to-own contracts to facilitate the acquisition of productive use assets by smallholder farmers. The Fund was launched in May 2023 and has deployed capital in Kenya, Tanzania, and Uganda, providing financing to Savings and Credit Cooperatives (SACCOs) and Microfinance institutions (MFIs) for microleasing to smallholder farmers, who would otherwise remain excluded from asset finance. In addition, the fund offers capacity-building and technical assistance, with the support of local technical partners  to the investees and farmers.

## Impact To-Date
As of December 2024, the adOpes Microleasing Fund's investments in partner SACCOs and MFIs have provided financing for lease-to-own contracts for __16,424 productive assets__ (microleases) for farmers in the region, with __68% of the total assets leased by women farmers__. These microleases are expected to increase the income of smallholder farmers by approximately __$4.8 million over the next three years__. Additionally, the Fund's investments have had an indirect mobilization or crowding in effect, with __SACCO and MFI partners leveraging about 50% of additional capital__ to help to co-finance these leases. The activity through the Microleasing Fund also led to the __creation of 57 formal jobs__ at the SACCO and MFI levels. 

Since May 2023, farmers have acquired a diverse range of assets, including farm tools, small transport, land leases, and climate-smart equipment such as solar and biogas-powered assets. By acquiring __climate-smart assets__, smallholder farmers are also contributing to SDG 13 (Climate Action) through the reduction of CO2 emissions as well as SDG 7 (Affordable and Clean Energy), by promoting the use of energy-efficient and environmentally friendly technologies. As of December 2024, the Microleasing Fund has financed __444 climate smart assets__, resulting in an estimated __775 tCO2 emission reductions__.

Through these initiatives, farmers like [Vicky Cherono](https://adopes.com/news/celebrating-vicky-cherono-empowering-women-in-agriculture/) and [Margaret Wanja](https://adopes.com/news/our-shujaa-the-inspiring-success-story-of-margaret-wanja/) have been able to transform their farms and homes, significantly changing their lives. Microleases are structured to transfer ownership to the farmers upon payment of the assets. This enables women and youth to overcome the collateral barrier of traditional lending.
![adOpes Microleasing Fund](//images.ctfassets.net/4cgqlwde6qy0/2FTlih0dIkSf2IzMY1Rr1q/48117a9ee2d51c3602b25d2092cfef6a/adOpes2.jpg)

## adOpes’ unique approach 
Within just 18 months of operations, adOpes has successfully achieved two key milestones; __non-performing loans of only 1% and successful recycling of capital__ through repaid principal and interest. Several factors contribute to the Microleasing Fund experiencing comparatively low losses. First, the Fund exclusively finances microleases for assets that can be sold in secondary markets in case of defaults. The ability to retain the asset while making payments and benefiting from its use provides a strong incentive for farmers to stay on track with payments. Second, the demand for asset finance tailored to the needs of farmers in East Africa exceeds the available capital. Thousands of SACCOs and MFIs across Kenya, Rwanda, Tanzania, and Uganda are looking to fund assets for their farmers, allowing for a rigorous screening and accreditation process to ensure requisite experience, vintage, balance sheet size, and current portfolio performance. Currently, the Fund’s indicative pipeline stands at 96 SACCOs/MFIs seeking to fund $48 million in assets for farmers. Additionally, having an external investment committee with extensive regional and sectoral knowledge and experience and a rigorous risk management framework ensures good governance. Finally, the microleasing portfolio is diversified by asset classes, countries, and currencies, mitigating geographical concentration risk.

## How to enhance and sustain impact in the microleasing and agrifinance sector?
From a market systems development perspective, adOpes’ investment approach extends beyond directly benefiting agriculture and agriculture finance supply chains. It also engages and catalyzes enterprises in supporting functions of the agriculture market system, including asset/equipment suppliers, micro-insurance providers, training providers, and input suppliers. By addressing a key constraint in agrifinance, a single investment can lead to growth in economic activity, job creation, and higher incomes, delivering significantly higher value for money compared to direct investments in each function separately.

SACCOs and MFIs, along with digital solutions and banking agents, have built a strong network in rural areas that link the financial sector with farmers. However, their services are often limited to deposits, savings, and small loans rather than productive loans to facilitate growth in the sector. Many SACCOs and MFIs remain unable to meet the capital needs of the vast numbers of farmers. Therefore, investments to scale high-performing SACCOs and MFIs are a critical component to driving growth and an untapped opportunity for the financial services market from both commercial and impact perspectives.

Additionally, capacity building plays a crucial role in empowering farmers. Financial literacy, entrepreneurship training, and agricultural best practices help both farmers and SACCOs and MFIs unlock their full potential while further de-risking the Fund’s portfolio. Availing capital for productive agricultural assets will also accelerate the distribution and uptake of climate-smart and green technology in the region.

## Key positive trends in the microleasing and agrifinance space
Agriculture is more vital than ever before. The global population is [expected to reach 10 billion by 2050](https://www.wri.org/insights/how-sustainably-feed-10-billion-people-2050-21-charts), leading to higher food consumption. Currently,[ family farms produce 80% of the world’s food supply](https://www.fao.org/newsroom/detail/Small-family-farmers-produce-a-third-of-the-world-s-food/en). Agriculture continues to be a crucial sector for Africa's socio-economic development. Smallholder farming alone supports over 60% of the continent's population and contributes around 23% to Africa's GDP. Access to inputs, financing, and availability of water are [essential for agricultural productivity and ensuring food security](https://www.nepad.org/blog/improving-food-security-africa-through-water-harvesting-technologies). These factors present both significant challenges and opportunities for the agricultural sector.

adOpes has observed a significant increase in awareness of agriculture’s importance, particularly the role of farmers in primary crop and livestock production  in East Africa. Farmers not only supply food for consumption but also provide inputs for value-added agriSMEs across the region.

Agriculture is increasingly important in providing livelihoods and income generation, especially for women and the growing youth population. Over the past three to five years, the agriculture sector has gained more recognition, leading to increased capital investment in agriSMEs. However, investing in primary agri-value chain production at the smallholder farmer level and their related activities remains a challenge. Farmers face multiple risks, including reliance on rain-fed agriculture, climate change impacts, and fluctuating input and selling prices for their produce.

As investors seek solutions to address these challenges, agrifinance players have a growing opportunity to innovate and provide tailored financial products for rural farmers.

## How Design Funding advanced the solution, and what’s next for adOpes?  
The Design Funding award helped to further propel adOpes and its Microleasing Fund by increasing visibility and attracting increased investor interest. In addition, the upfront rigorous and competitive application process allowed adOpes to further consider, refine, and align its offerings. The award supporting key design and expansion activities, combined with adOpes’ demonstrated impact so far, has further strengthened confidence in its forward-leaning and inclusive financing model. The grant has also supported deal structuring efforts in Kenya, Tanzania, and Uganda, further advancing the Fund’s mission. 

Looking forward, adOpes and the Microleasing Fund aim to fund the demand pipeline and continue to grow a quality portfolio that will take them into profitability. adOpes also plans to expand and deploy capital in Rwanda later in 2025. Together with partners in the areas of technology, insurance, capacity building, asset companies, agriSME,s and Ministries of Agriculture, adOpes aspires to build a platform that supports farmers in East Africa beyond capital alone.


Impact Story: adOpes - a microleasing platform offering productive assets to smallholder farmers and micro enterprises

adOpes - a microleasing platform

Learn how blended finance fits into AECF's approach, how they measure and track impact, the evolution of their business model, and more.

AECF Member Spotlight

Africa Enterprise Challenge Fund Member Spotlight with Victoria Sabula

Convergence and the East Africa Venture Capital Association (EAVCA) have signed a memorandum of understanding (MoU) to collaborate on growing and developing the understanding, adoption, and application of blended finance in Africa.

Under this MoU, Convergence and EAVCA will collaborate through a strategic framework to expand blended finance knowledge and support the mobilization of private capital in the region. The organizations will participate in reciprocal speaking opportunities, cooperate on joint training programs, and collaborate on other related activities, such as conferences, roundtables, workshops, and more.

“Sustainable investment in East Africa demands innovative financial instruments tailored to local market dynamics to unlock the region’s full economic potential. Blended finance plays a critical role in mobilizing private capital while ensuring the efficient use of public resources,” said Jacklyne Iminza, COO of EAVCA. “Our partnership with Convergence marks a key milestone in strengthening industry capacity, raising awareness, and accelerating the adoption of blended finance to support business growth in the region.” 

“EAVCA’s mandate closely aligns with Convergence’s vision for the growth of blended finance in Africa,” says Aakif Merchant, Director at Convergence. “This partnership will deepen regional blended finance knowledge, while furthering opportunities for our members and partners across the continent.”

__About East Africa Venture Capital Association (EAVCA)__ 
[EAVCA](https://www.eavca.org/), is a business membership organization representing private capital investors across East Africa. Formed in 2013, EAVCA is dedicated to fostering collaboration between capital providers and businesses in the region. The association plays a key role in strengthening the private capital investment ecosystem by advocating for enabling policies, facilitating industry insights and networks, and promoting best practices that drive sustainable economic growth in East Africa. EAVCA membership includes development finance institutions, private equity and venture capital funds, impact investors, family offices, and intermediary advisory firms. EAVCA has offices in Kenya and Uganda.

__About Convergence__ 
[Convergence](http://www.convergence.finance/) is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement. Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further. We offer this community exclusive access to original market intelligence and knowledge products (such as case studies, data analyses, and online and in-person training), networking events, and more. To accelerate advances in the field, Convergence also provides grants for the design of vehicles that could attract private capital to global development at scale.

Convergence and the East Africa Venture Capital Association have signed a MoU to collaborate on growing and developing the understanding, adoption, and application of blended finance in Africa.

Convergence and EAVCA announce partnership

Convergence and East Africa Venture Capital Association announce partnership to develop blended finance in Africa

At Convergence, we keep our finger on the pulse of new blended finance research and literature, so we can consider them in our analysis and add them to our [Resource Library](https://www.convergence.finance/resource). Over the past year, we have seen many new reports on gender and blended finance come out. Here are three main takeaways:

__1. Industry standards for gender-related impact measurement are becoming more sophisticated.__

Measuring and monitoring the impact of investments on gender quality and women’s economic empowerment can be challenging. 2024 saw important developments in this space. One highlight was the release of the updated [2X Criteria Reference Guide](https://www.2xchallenge.org/2x-criteria-reference-guide). The guide helps investors apply the 2X Criteria, which allow actors to screen and mark deals as 2X-aligned for their internal reporting and tracking purposes. The 2X Criteria are applicable to any kind of investor or financial institution, from impact investors to asset managers, private equity firms, and development finance institutions. As a result, we have seen an increase in the number of blended finance vehicles that apply the 2X Criteria over the past year.

Another highlight was the launch of [2X Certification](https://www.2xcertification.org/) in September 2024. 2X Certification is an independent, third-party verification process that helps advance gender equity for investors, companies and financial instruments. The certification platform is powered by Equilo, a web-based App.

__2. The spotlight turns to investment decision making processes and gender composition of leadership teams.__

In the past, many gender related blended funds and facilities focused their attention on collecting and reporting gender disaggregated data on their investee companies, such as the percentage of women among beneficiaries, or the percentage of women-owned/women-led enterprises. Nowadays, “counting heads” at beneficiary level is no longer sufficient to brand your blended finance vehicle as gender responsive. As part of the selection and due diligence processes, it is an increasingly common practice to review the gender composition of the investment teams and senior management, and gauge how inclusive the decision making processes of these teams really are.

In June 2024, Convergence member IPE Global released a “[Toolkit for Gender Lens Investing](https://samridhhealth.org/toolkit/)”. Based on the experience of the USAID-supported SAMRIDH Blended Finance Facility, this publication provides tailored gender responsive approaches to investments in healthcare. For example, SAMRIDH’s investment committee has equal representation of men and women, all of whom undergo gender sensitization training to ensure an unbiased selection process. The toolkit identifies several teams (at fund level) whose gender composition matters:
![Gender Composition at the Fund level SAMRIDH](//images.ctfassets.net/4cgqlwde6qy0/2oc6KvE41K0aDxhaKS21AX/f3ba82f46f922c5d8f941ba8e9ed5cbb/Gender_Composition_at_the_Fund_level_SAMRIDH.png)
*Image: Gender Composition at the Fund level (Credit: SAMRIDH)*

__3. Moving from short-term to long-term gender outcomes.__

The prevailing three to five year funding cycles of donor-supported projects and blended funds can make it difficult to measure changes over a longer period of time. It inadvertently means interventions are designed with a focus on short-term outputs, such as the number of jobs created for women. Yet, if the goal is lasting change and improving the livelihoods of women across the world, we need to shift towards aiming for and evaluating long-term changes in social dynamics and values. The [first stocktaking report](https://www.ccfacility.org/learning-hub) on Blended Finance and the Gender-Energy Nexus, published by the Catalytic Climate Finance Facility’s Learning Hub, summarized this as follows: “…robust evidence on long-term outcomes of gender lens investing is critical in creating an industry transformation and a paradigm shift in investment practices.”

__For more of the latest research on blended finance, visit our [Resource Library](https://www.convergence.finance/resource).__

*Please view our [gender equality page](https://www.convergence.finance/about/themes) for more gender-related blended finance resources, including stats on gender deals, grant programs, trainings, publications, and more.*

Over the past year, we have seen many new reports on gender and blended finance come out. Learn about three key takeaways.

3 takeaways from recent reports on gender & blended finance

Three takeaways from recent reports on gender and blended finance

*__Written in collaboration with [Thomas An](https://www.linkedin.com/in/thomasseungan/?originalSubdomain=ca), Associate, Market Acceleration & Design Funding (former).__*

Since its inception eight years ago, Convergence’s Design Funding program has granted over $22 million in design-stage funding to 72 blended finance solutions, fostering the development and implementation of early-stage initiatives that attract private capital towards emerging markets and the Sustainable Development Goals. To date, 28 of these supported solutions have collectively mobilized $2 billion in follow-on capital from a diverse array of public, philanthropic, and private investors. The $2 billion also includes capital mobilized through joint-run programs, such as the SDG Impact Finance Initiative, and the Catalytic Climate Finance Facility in collaboration with the Climate Policy Initiative.

This blog delves into how these solutions have successfully attracted substantial capital, breaking down the types of investors involved and the specific financial vehicles utilized. We also spotlight three projects—Mirova’s Gigaton Empowerment Fund, BlackRock’s Climate Finance Partnership, and The Nature Conservancy’s Blue Bonds—which together account for nearly 70% of the total capital mobilized. By examining these case studies, we aim to provide insights into what makes certain blended finance models effective and scalable, as well as highlight lessons learned from smaller-scale projects like Africa GreenCo, which showcase innovative approaches in high-impact sectors.

## Over half of capital mobilized in the form of private, commercial capital 

![Breakdown of the Design Funding Program’s $2B Capital mobilization figure based on investor and capital type ](//images.ctfassets.net/4cgqlwde6qy0/4R5R0sOd0Ol0PYMjik3iUC/021127f497fb332663f0ebbc5255141b/P1.png)
*Figure 1: Breakdown of the Design Funding Program’s $2B Capital mobilization figure based on investor and capital type*

Most notably, approximately 78% of the total capital mobilized originates from capital providers seeking market-rate financial returns, including $1.19 billion from exclusively private commercial investments. This commitment underscores the effectiveness of these blended finance solutions in instilling confidence and attracting substantial interest from commercially oriented investors.

Contributing further to this mobilization, nearly 14% of the total capital was sourced as concessional funding with below-market rate return expectations from development agencies and similar entities. These development agencies play a pivotal role by offering more favorable terms that lower investment risk, thereby encouraging private investor participation in high-impact projects that might otherwise be overlooked. 

The remaining portion of the total capital mobilized comprises philanthropic and non-return seeking concessional capital, with $157 million allocated in grants. While we see grants more commonly used at the investment stage in transactions in the broader blended finance market, most grants secured by vehicles within our portfolio have been directed toward either earlier-stage design and scale-up activities or technical assistance, providing critical support for vehicle structuring and implementation. 

These funding structures have a strong demonstration effect, showcasing how blended finance can effectively mobilize private capital.

## Fund and bond vehicle types mobilized almost all of the capital 

![Fund and bond vehicle types mobilized almost all of the capital ](//images.ctfassets.net/4cgqlwde6qy0/3sOnY0MmbsU69A8ynLV7dU/b53b909b87c793902c7c4677dd4ea8f2/P2.png)
*Figure 2: Proportion of capital mobilized disaggregated by vehicle type*

As illustrated in Figure 2, the Design Funding portfolio demonstrates a significant concentration of capital mobilization in fund and bond vehicles. Fund-type vehicles have attracted $1.29 billion, accounting for 64% of the total $2 billion mobilized, while bond and note-type vehicles have garnered $550 million, representing 27%. These figures are consistent with prevailing trends in the broader blended finance market as documented by Convergence.

Investors’ familiarity with fund structures plays a crucial role in enhancing their participation in these transactions. Funds facilitate the aggregation of diverse projects or companies, making them an efficient vehicle for investing in diversified portfolios. Bonds and notes in our portfolio, on the other hand, have been primarily utilized for sector-specific solutions such as the blue or green economy. The issuers rely on external certifications to verify targeted impacts and adherence to established standards, thereby attracting investors interested in specific developmental objectives.

Outliers in this landscape include facilities, companies, and impact bonds—nuanced and needs-based blended finance structures that have yet to replicate at scale. At Convergence, we remain eager to support applications proposing unique and innovative financial vehicles across these structure types, recognizing their potential to drive impactful solutions in the future.

## Taking Bets Leads to Whale deals and Scaled Development 

Of the Convergence grant portfolio’s $2 billion of capital mobilized, three solutions represent nearly 70% of the mobilization figure, collectively raising $1.3 billion. The three whale solutions include the Mirova Gigaton Fund, Blackrock’s Climate Finance Partnership (CFP), and The Nature Conservancy’s Blue Bonds for Ocean Conservation. 

Mirova’s [Gigaton Empowerment Fund](https://www.convergence.finance/design-funding/grant-portfolio/1VFqZA6pJa6CXtYRESEvZa/view) has mobilized $331.5 million in capital. The fund is designed with an intentional gender lens, integrating gender-focused investment strategies and business practices. The Fund also is positioned to become the largest-scale initiative addressing the electricity gap. Convergence’s design-stage grant supported the fund in improving its gender strategies to meet the 2X Certification criteria, pursue a credit rating and attract private investors. The fund has already begun making strides in the clean energy sector in emerging markets, investing in [three energy projects thus far across the Africa Region](https://impact-investor.com/mirova-gigaton-fund-grows-to-282m-with-eib-backing/). A contributing factor to the success and scale of the fund is Mirova's experience with managing other blended finance funds. Mirova draws upon its previous experiences and learnings for the Gigaton Empowerment Fund to demonstrate to investors the financial soundness and viability of the fund. 

[Climate Finance Partnership](https://www.convergence.finance/design-funding/grant-portfolio/I5y8rA7djo7Ic6w6n4fp7/view) (CFP), a private equity fund managed by BlackRock, represents one of the largest blended finance transactions to date, aiming to reach a financial close of $1 billion, and marking an unprecedented amount of capital mobilized towards achieving the SDGs. Its [structure, size, catalytic contributions and investment strategy](https://www.convergence.finance/news/3s7v2XsCRrzfeHTxqf7Lzn/view) position it as a scalable and replicable climate-focused transaction in emerging markets. The Fund has invested in five projects in the wind and solar industries, most notably contributing to accessibility and affordability of energy in [Kenya](https://www.power-technology.com/news/climate-finance-kenya/), and supporting [Brazil’s](https://irei.com/news/brasol-announces-investment-from-blackrocks-climate-finance-partnership/) national transition to low-carbon energy. A unique aspect of the CFP is its substantial catalytic tranche, which has received over $100 million in concessional contributions. The private equity fund aims to generate the highest industry-wide concessional to private mobilization ratio by prioritizing investments in middle-income markets. 

[The Belize Blue Bond](https://www.convergence.finance/news/53nMkbseHrNo8CBK9Um1U1/view) for Ocean Conservation has mobilized $400.8 million of capital to date since its launch in 2021. The solution gained Convergence’s support in its early design and structuring stages because of its innovative structure, which supports economic development by refinancing sovereign debt to strengthen national marine conservation efforts. The Belize Blue Bond has made serious waves, [reducing national debt by 12%](https://www.caribois.org/2024/06/can-carbon-credits-be-the-solution-to-belizes-debt/#:~:text=A%20Blue%20Economy%20Sparked%20%E2%80%9CBlue%20Bonds%E2%80%9D&text=It%20represents%20the%20single%20most,cent%20of%20the%20country's%20oceans.). The initial Blue Bond launched in the Seychelles was successful, and served as a model for subsequent blue bonds in other SIDS, including the Belize Bond, and then, the Barbados Bond launched in 2022, and Ecuador Debt-for-Nature Swap in 2023. The structuring of all these transactions leveraged blended finance to demonstrate the bonds structure viability and replicability, and reduce the need for concessional capital in future Blue Bonds. 

While these three whale deals showcase effective ways to increase commercial contributions towards the SDGs, relatively smaller scale solutions in the design funding portfolio have innovative models that not only generate significant impacts, but can also have strong demonstration effects for other blended finance practitioners. 

One example is Africa Greenco (AGC), which has mobilized approximately $23 million in debt, equity and grant commitments, and $122.5 million in guarantee commitments since Convergence’s contributions. Africa faces a persistent and widespread issue of unreliable and insufficient energy access with nearly [600 million individuals](https://csis-website-prod.s3.amazonaws.com/s3fs-public/2024-01/240131_Baskaran_Energy_Africa.pdf?VersionId=5H6XEl6W.3YisdwUoqotAo7aFeXIHLU3) lacking access to electricity in 2022. Despite being a continent rich in energy resources, Sub-Saharan Africa accounts for over [75%](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Market_Africa_2022.pdf?rev=bb73e285a0974bc996a1f942635ca556) of the global population living without electricity. AGC emerged as an innovative solution to this pervasive problem, functioning as an [intermediary off-taker and service provider](https://africagreenco.com/about-us/) of renewable energy across the Southern Africa Power Pool, and mitigating the risk of power purchasers defaulting to unreliable independent renewable energy companies. This helps strengthen the region’s renewable energy sector, boosts investment in clean energy projects, and enhances the reliability and affordability of energy across Africa. Africa GreenCo has signed three power purchase agreements as of 2023: the [25 MW Ilute Solar PV](https://africagreenco.com/pdf/20231202__PPA_Press_Release%20Ilute%20PPA%20Signing.pdf) Project in Western Zambia, an [85 MW solar project with AMEA Power](https://www.ameapower.com/amea-power-expands-its-presence-in-south-africa-with-85mw-power-purchase-agreement-with-greenco/) in South Africa, and most recently, the [30MW Sable Solar Project in Zimbabwe](https://www.greenbuildingafrica.co.za/jcm-power-signs-ppa-for-30mw-sable-solar-project-in-zimbabwe/). These agreements are facilitating the development of 140 MW of clean energy capacity. Despite the company’s smaller mobilization size, it has provided valuable learnings to the renewable energy market in Africa, as well as delivering substantial impacts to residents and businesses across the region. Since its inception in 2015, there has been a rise in similar renewable off-taker models across the African region. AGC has continued to build on its success, recently signing a [facilities agreement](https://africagreenco.com/regional-collaboration-and-innovative-financing-addresses-zambias-energy-crisis/) with Stanbic Bank and Standard Bank to prepay for 130 MW of electricity imports into Zambia. 

## Conclusion 

“The Design Funding approach offers significant leverage for donors, philanthropists, and impact investors to accelerate the race to address key global development objectives,” says Leah Pedersen, Convergence Senior Director. “The impressive track record of Convergence’s Design Funding initiative underscores the effectiveness of accelerating the launch of new blended finance structures to attract more private sector capital and highlights the catalytic role of grant funding in structuring impactful financing solutions.” By providing design-stage grants, Convergence enhances the viability of early-stage projects and de-risks investments, signaling to private investors that these initiatives are likely sound both financially and in terms of impact. As these projects scale and replicate, they have the potential to contribute significantly to sustainable development in emerging economies. Through design funding, Convergence directly advances its mission to increase private investment in emerging markets and developing economies, supporting the achievement of the SDGs.

Breaking Down the Billions: A Closer Look into Convergence’s Design Funding Program’s $2 Billion Mobilization Figure 

*This op-ed was originally published in [Environmental Finance](https://www.environmental-finance.com/content/analysis/to-support-climate-adaptation-experienced-fund-managers-must-take-the-lead.html).*

The consensus coming out of COP29 is that achieving global climate goals will require increased participation from the private sector. Convergence's recent report on the State of Blended Finance (Climate Edition) found that private sector investment into blended transactions targeting climate goals surged from $1.8 billion in 2022 to $6.2 billion in 2023.

Yet, the bulk of this money flows to climate mitigation rather than adaptation. In the global climate adaptation market, only 1.6% of financing comes from the private sector.

Private investors can be more hesitant to consider investments in blended funds that target adaptation.

Mitigation transactions often have direct revenue streams, such as through the sale of renewable energy, or cost savings from energy efficiency. Conversely, adaptation transactions, which aim to reduce vulnerability to climate impacts and increase resiliency, often do not have an obvious or immediate revenue stream.

Blended finance can be used as a structuring approach to mitigate risk for private sector investors, making it more likely for them to invest in deals aimed at climate adaptation.

Adding a concessional debt or equity tranche in the capital structure, for example, can provide a risk cushion to senior tranche investors. It thereby allows pension funds, insurance companies, or commercial banks to invest in line with their fiduciary responsibilities.

Experienced fund managers play a critical role in structuring such funds. They act as market builders for blended climate adaptation, supplying investors with investment opportunities in line with their (minimum) investment size and their risk-return expectations.

Two examples highlight how fund managers can use blended finance to attract private investment at scale into adaptation.

First, let's look at Climate Investor Two, a blended facility targeting adaptation, specifically water, sanitation, waste, and ocean infrastructure projects in emerging markets.

It is managed by Climate Fund Managers, a Dutch-based joint venture between the Dutch development bank FMO and Sanlam Infraworks. Established in 2019, the fund reached its third close in 2023 with $875 million in commitments, including from institutional investors, such as a Nordic pension fund, a prominent US investment firm, the IMAS Foundation (under the IKEA umbrella), and a commercial bank.

Climate Investor Two is a great example of how a fund manager was able to build on its track record to venture into a more nascent sector. Many investors that took part in Climate Investor Two had already been investors in its predecessor, Climate Investor One, which focused on mitigation (renewable energy infrastructure) in emerging markets.

Climate Investor One was conceptualized in 2015 and reached a final close at $850 million in 2019. By participating in Climate Investor One, commercial investors had already gained an in-depth understanding of the firm's fund architecture and unique full investment cycle approach.

This helped them build strong arguments internally for investing in an adaptation-focused product, despite it being a first for many of them.

Another example is Incofin Investment Management's Water Access Acceleration Fund.

Incofin, a Belgium-based impact fund manager, launched this private equity fund in 2023 to invest in safe drinking water enterprises, primarily in Africa and Asia.

Incofin has a strong track record in using blended finance to catalyze investments in emerging markets: the firm has managed several blended funds focused on the microfinance and agriculture sectors (e.g. Incofin Fairtrade Access Fund).

Now turning to the water sector, the $55 million fund brings together diverse investors such as Danone, BNP Paribas, US International Development Finance Corporation, the Danish development finance institution IFU, Norfund, European Investment Bank, Aqua for All, and the US Agency for International Development.

Here as well, investors trusted the captains that had done it before.

To be sure, first-time fund managers also play an important role in launching adaptation-focused vehicles. In fact, the first adaptation-focused blended fund, the Climate Resilience and Adaptation Finance and Technology-transfer facility, was launched in 2019 by a first-time fund manager (the Lightsmith Group).

However, we need to see more money flowing towards adaptation, urgently. The time to market (from incubation to first financial close) will arguably be shorter when experienced managers steer the ship to new waters.

To all established fund managers: this is the time to use your experience and track record to bring along private investors into adaptation focused financial vehicles.

We need to see more money flowing towards climate adaptation, to support this experienced fund managers must take the lead