The Dutch Fund for Climate and Development (DFCD)is organizing interactive events focused on Uganda, Kenya and Bangladesh to discuss the local climate challenges and how the DFCD could support potentially bankable climate projects in scaling successfully, and generating social and environmental development in these countries. 

The Scalable Climate Solutions Challenge is looking for projects that provide climate-resilience and large-scale impact in climate-vulnerable landscapes. One project per country will be provided with a development contribution of up to € 350,000 from the existing DFCD Origination facility, get a chance to present their project at COP26 in Glasgow and become eligible for larger support from DFCD. Do you have or know a project with a scalable business model that contributes to improving the quality and management of water, the resilience of agriculture or the health and diversity of ecosystems in Uganda, Kenya or Bangladesh that would be up for this Challenge and can benefit from our support? Or do you just want to learn more about the Challenge? DFCD encourages all stakeholders to participate.  

*__Please check your own time zone__*

__Uganda: 22 April at 9:00 am CET (or 10:00 Uganda Time)__

__Bangladesh: 28 April at 10:00 am CET (or 14:00 Bangladesh Time)__ 

__Kenya: 6 May at 10:00 am CET (or 11.00 Kenya Time)__

Register yourself and share the link with others:
[https://www.thedfcd.com/challenge/live](https://www.thedfcd.com/challenge/live "DFCD Scalable Climate Challenge")

Want to know more? [Visit www.thedfcd.com/challenge](https://www.thedfcd.com/challenge/ "DFCD Scalable Climate Challenge") or reach out to info@thedfcd.com for further questions. 

To directly apply click on the link below:
[https://airtable.com/shrV3PUGJ6Tmdyvco](https://airtable.com/shrV3PUGJ6Tmdyvco)

DFCD Scalable Climate Solutions Challenge in Uganda, Kenya and Bangladesh

The Dutch Fund for Climate and Development (DFCD)is organizing interactive events focused on Uganda, Kenya and Bangladesh to discuss the local climate challenges and how the DFCD could support potentially bankable climate projects in scaling successfully, and generating social and environmental development in these countries. 

DFCD Scalable Climate Solutions Challenge

Convergence and The Conservation Finance Alliance are co-hosting a webinar to share challenges and opportunities in designing financing structures for nature-based solutions.

Convergence and the CFA are bringing together practitioners to discuss lessons learned and challenges encountered in early stage design work of natural capital and conservation finance structures.

Convergence’s [Asia Natural Capital Design Funding Window](https://www.convergence.finance/design-funding/open-window/asia-natural-capital-open-window "Convergence | Asia Natural Capital Design Funding Window") provides grants for the design and launch of blended finance solutions focused on natural capital in Asia. The CFA’s [Incubator](https://www.conservationfinancealliance.org/incubator "CFA Incubator") program seeks to identify, support, and promote innovative ideas and solutions to conservation finance challenges that have significant positive conservation impacts. The webinar will feature past grant recipients and program participants, who will share their practical insights.

Convergence accepts applications on a rolling basis, and the __next deadline for the Asia Natural Capital Window is June 3rd, 2021__. 

Designing Financing Structures  for Nature-based Solutions (Asia)

Convergence and The Conservation Finance Alliance are co-hosting a webinar on April 22nd to share challenges and opportunities in designing financing structures for nature-based solutions.

Designing Financing Structures  for Nature-based Solutions

Designing Financing Structures  for Nature-based Solutions (US/Europe)

Convergence and The Conservation Finance Alliance are co-hosting a webinar on April 20th to share challenges and opportunities in designing financing structures for nature-based solutions.

The natural world underpins our economies, with more than 44 trillion USD of economic value generation, half the world’s GDP, moderately or highly dependent on this critical asset. Nature is central to supply chains and raw materials, supporting the businesses we finance, invest in and insure - and yet it is increasingly under threat. 

As part of the [Sustainable Investment Forum 2021](https://events.climateaction.org/sustainable-investment-forum-europe/ "Sustainable Investment Forum 2021"), this session will explore how European investors can move from the case for investing in nature to meeting the conservation finance gap at scale. This shift presents many business opportunities for European investors, with the support of blended finance and strategic public investments in accelerating nature finance. 

__Joan M. Larrea, CEO of Convergence, will participate on the panel to discuss how blended finance can help accelerate nature finance.__ 

UNEP FI Panel on Nature & Biodiversity

This session will explore how European investors can move from the case for investing in nature to meeting the conservation finance gap at scale. This shift presents many business opportunities for European investors, with the support of blended finance and strategic public investments in accelerating nature finance. 


The Island Finance Forum brings together senior financiers, development partners and regulators to share and exchange expertise on sustainable and inclusive financial structures in island communities. The Forum aims to highlight the unique financial challenges faced by global island communities and the solutions for sustainable economic recovery and inclusive growth in a post-pandemic world.

The Island Finance Forum will:
1. Bridge the gap between sustainable development practitioners and financial stakeholders.
2. Help island stakeholders access expert knowledge and financial opportunities available to them.
3. Showcase the economic opportunities available from investing in the sustainability sector on islands – particularly impact investing and ESG.

Register now to attend the various online sessions taking place 14-15th April 2021.

 Island Finance Forum 2021

The Island Finance Forum brings together senior financiers, development partners and regulators, highlighting the unique financial challenges faced by global island communities, and the solutions for sustainable economic recovery and inclusive growth in a post-pandemic world.

Convergence Eventbrite

__Tuesday, April 13 2021, 9am – 11:30am Eastern time (GMT -4):__

__This seminar has reached full capacity.__

---

This 2.5-hour (150 minutes) interactive seminar will cover:
- How blended finance is used to mobilize additional private sector financing for health and education in developing countries;
- Case studies and trend analysis on blended finance transactions in health and education; and
- Recommendations to practitioners on leveraging blended finance effectively.

Historically, Convergence has not seen sustained activity in blended finance for health and education, with both sectors combined accounting for less than 10% of the blended finance market. More recently, though, blended finance activity has grown in both sectors - in part due to the COVID-19 pandemic. Among transactions currently fundraising on Convergence’s matchmaking platform, 19% target the health sector and 18% target the education sector. In this seminar, Convergence members will share their insights, and participants will discuss current initiatives in small groups.

This is the last seminar in our five-part series “Blended Finance in Select Sectors". You are welcome to register even if you have not attended any of the preceding seminars.

*The seminar has limited space to ensure an intensive and practice-driven learning experience. Each Convergence member organization has two complimentary seats in each seminar, please apply the __discount code__ you received by e-mail. Non-members can register for a fee of USD150.*


Blended Finance for Health and Education (Europe/East Coast)

'Blended Finance for Health and Education' is the fifth seminar in Convergence's series "Blended Finance in Select Sectors".

Informed by ODI’s new report, “ Development Finance Institutions (DFIs): need for bold action to invest better ” ODI investigates what has and has not worked in mobilizing private finance for development. ODI explores how development finance institutions, multilateral development banks and their shareholders, can re-evaluate their business models, investment approaches and collaborative initiatives to better support the vision of the Addis Ababa Action Agenda, and support the global effort to ‘build back better'.

### Speakers:

__Samantha Attridge__
Senior Research Fellow, Development and Public Finance, ODI

__Jean-Philippe De Schrevel__
Founder and Managing Partner, [Bamboo Capital Partners](https://www.convergence.finance/news-and-events/news/7sugegQYKLl5oQ8mZS6wDc/view "Convergence | BCP Member Spotlight")

__Joost Zuidberg__
Chief Executive Officer, Cardano Development

__Andrew Herscowitz__
Panellist – Chief Development Officer, [US International Development Finance Corporation](https://www.convergence.finance/news-and-events/news/3iypwUnCmLfgcuhvc12wxQ/view "Convergence | DFC Member Spotlight") (DFC)

__Katharine Steger__
Managing Director, Regional Head Europe, Public Sector Development Organizations, Standard Chartered

Development Finance Institutions: Bold Action to Invest Better

Virtual event organized by ODI to explore how development finance institutions, multilateral development banks and their shareholders, can re-evaluate their business models, investment approaches and collaborative initiatives to better support the vision of the Addis Ababa Action Agenda, and support the global effort to ‘build back better'.

Bold Action to Invest Better

The countries of the Africa, Caribbean and Pacific (ACP) regions are some of the most vulnerable to climate change. However, financial flows for private sector projects in climate adaptation remain limited. Overcoming this challenge and stimulating the expertise and innovation capacity of the private sector is critical for the future of these regions. This online event examines how ACP countries can overcome the barriers to mobilizing finance to catalyze the private sector to provide goods and services which delivers climate resilient economic growth. This will include discussion on the role of various international sources of finance, such as multilateral development banks or impact investors, in catalyzing other sources of investment.

This online event will share experiences and provide guidance to public and private sector stakeholders in ACP countries seeking to mobilize finance to stimulate private sector engagement in climate adaptation projects. It will highlight the need for ACP countries to better translate their National Adaptation Plans into clear investments priorities for the private sector and the pivotal role of Developmental Financial Institutions to provide tailored financial solutions which meets the needs of the private sector in these countries.


Mobilizing International Finance to Stimulate Investment into Climate Change Adaptation

This event will include a discussion on the role of various international sources of finance, such as multilateral development banks or impact investors, in catalyzing other sources of investment, and offer guidance to public and private sector stakeholders in ACP countries seeking to mobilize finance to stimulate private sector engagement in climate adaptation projects.

Mobilizing Investments towards Climate Change Adaptation

As part of the upcoming Africa Regional Review meeting for the 5th UN Conference on LDCs, co-convened by UN office of the High Representative on LDCs, Landlocked  Countries and Small Island Developing States (UN-OHRLLS), UN Economic Commission for Africa (UNECA) and the Government of Malawi (chair of the LDC group), UNCDF has organized a virtual dialogue with country partners and relevant stakeholders on the Impact of COVID-19 on SMEs in LDCs and the role of blended finance in supporting a resilient recovery, on February 24 between 6:00-7:30 EST.

This side event will provide insights from UNCDF’s [Blended Finance in the Least Developed Countries 2020: Supporting a Resilient Covid-19 Recovery report](https://www.convergence.finance/resource/7e4c5d28-38e0-495e-9fcb-57c7ad85cb96/view "Blended Finance in the Least Developed Countries 2020: Supporting a Resilient Covid-19 Recovery report"), including an update on the deployment of blended finance in LDCs with a particular focus on Africa, as well as analysis of its potential role in helping LDCs recover from the COVID 19 crisis. 

The session will also highlight impacts of COVID-19 on SMEs and the need for additional SME finance. 

Convergence is happy to have Ladé Araba, Managing Director for Africa, join the panel of experts to share perspectives on the role of blended finance to support a resilient recovery in Africa. 

![Screen Shot 2021-02-17 at 12.32.52 PM](//images.ctfassets.net/4cgqlwde6qy0/6tfkXZhpuUCTd2NQYrrPAK/c9cda1dd9a87e3d5146494bfded76cbe/Screen_Shot_2021-02-17_at_12.32.52_PM.png)

*__Please be sure to select ‘Impacts of COVID-19 on SMEs in LDCs and the role of blended finance in supporting a reliant recovery’ in side events you would like to attend. A Zoom link will be sent to all registered participants.__*

Impacts of COVID-19 on SMEs in LDCs

Ladé Araba, Managing Director for Africa at Convergence joins panel with country partners and relevant stakeholders to discuss the impacts of COVID-19 on SMEs in LDCs and the role of blended finance in supporting a resilient recovery, organized by UNCDF as part of the upcoming Africa Regional Review meeting for the 5th UN Conference on LDCs.

__Thursday, February 18th 2021, 9am – 11:30am Singapore time (GMT +8):__

---

This 2.5-hour (150 minutes) interactive seminar will cover:

- How blended finance can mobilize additional private sector finance for financial inclusion;
- Case studies and trend analysis on deals that provide financing to domestic banks, microfinance institutions and alternative financial service providers; and
- Recommendations to practitioners on leveraging blended finance effectively.

Blended finance has a long track record of supporting financial inclusion solutions. Financial inclusion solutions support banks, cooperatives, microfinance institutions (MFIs), money transfer companies and mobile network operators to extend the reach of financial markets to those most in need. Relative to other impact themes, the private sector has demonstrated a healthy appetite for financial inclusion in developing countries - 25% of blended finance deals in Convergence’s database target financial inclusion. In this seminar, Convergence members will share their insights, and participants will discuss current initiatives in small groups. 

This is the fourth seminar in our five-part series “Blended Finance in Select Sectors". You are welcome to register even if you have not attended any of the preceding seminars.

*The seminar has limited space to ensure an intensive and practice-driven learning experience. Each Convergence member organization has two complimentary seats in each seminar, please apply the __discount code__ you received by e-mail. Non-members can register for a fee of USD150.*

Blended Finance for Financial Inclusion (Asia/West Coast)

Blended Finance for Financial Inclusion is the fourth seminar in Convergence's series "Blended Finance in Select Sectors".

Blended Finance for Financial Inclusion, Asia/West Coast

__This executive panel is designed for public and private sector officials, NGOs, and others interested in blended finance. It will discuss how blended finance can be used to help build back better, safely, and securely to achieve the SDGs, with a particular focus on using blended finance to address the needs of women.__

The COVID-19 crisis has set back progress towards achieving the Sustainable Development Goals (SDGs). New attention needs to be paid to building back better in the post-COVID world.

Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development. It has been advocated by the international development community as a tool to help address the estimated USD 2.5 trillion annual SDG funding gap in emerging markets and developing countries. 

There are three interrelated areas that will be explored in this executive panel:

- The resources for international assistance to support build-back efforts are limited
- How blended finance can be used to advance gendered-focus investments
- How blended finance can increase opportunities and reduce risk to support financial sector regulators and supervisors balance growth and investment with financial and economic stability


 Utilizing Blended Finance to Help Developing Countries Build Back Better

Blended Finance for Developing Countries Build Back Better

The OECD will mark the first anniversary of the Development Assistance Committee (DAC)’s Community of Practice on Private Finance for Sustainable Development (CoP-PFSD) with a series of discussions that will aim to answer the following critical policy topics in a COVID-19 era: 

__Addressing regulatory and financial capacity constraints__ 
Institutions that deliver development finance, such as DFIs, will be required to respond to the COVID-19 crisis with constrained financial capacity: a situation where balance sheet optimisation can play an important role. This discussion will feed on insights from the Report of the Global Investors for Sustainable Development. 

__Closing the SDG financing gap: making the most of blended finance__
Mobilizing additional financial resources effectively for sustainable development requires mitigating investment risks and encouraging commercial finance providers. Blended finance instruments — such as guarantees and direct investment — have proven effective, with USD 205.2 billion in private capital mobilized for development over 2012-18. The OECD DAC Blended Finance Guidance provides policy makers and development finance actors with the background, evidence, best practice and tools to engage in blended finance effectively. 

__Driving impact: the role of frameworks and standards__ 
Businesses and investors often point out their SDG alignment without disclosing how they contribute meaningfully to the achievement of the Goals. Public and private actors need to agree on common frameworks and standards to measure the impact of sustainable development investments, and reduce the risks of “SDG washing”. 

__Focusing on climate and gender to build back better__ 
With less than 10 years to reduce global net CO2 emissions by 45% and limit global warming to 1.5C, mobilizing climate finance may be the most pressing challenge of our time. Governments, institutional investors and other actors must scale up climate finance mechanisms, strategies and disclosure levels in order to ensure the COVID-19 build back is sustainable. Adopting a gender lens while implementing blended finance initiatives is also necessary for ‘smart’ finance to meet the needs and priorities of marginalised groups.

2021 Blended Finance Impact Week

[Ceniarth](https://ceniarthllc.com/ "Ceniarth | Impact Investor"), the single-family office of Diane Isenberg, is focused on funding enterprises and intermediaries delivering products, services and support that reach marginalized, primarily rural, populations. As an impact-first investor, Ceniarth deploys low cost capital in markets where more commercial returns are not feasible. While operating with a more modest return expectation, Ceniarth is focused on capital preservation, underwriting investments to a risk standard of returning capital from all investments. The organization also provides programmatic funding to support high-risk projects and pooled interventions such as early stage pilots to support market building.

Ceniarth has invested in 29 blended finance deals with an average investment size of USD 2-5 million. As Ceniarth is one of the few family offices in the global blended finance market, we connected with Greg Neichin, Director of Ceniarth, to learn more about their impact investing approach and what makes blended finance an attractive tool to build their investment portfolio and meet their impact objectives.

 

## As an asset owner, why does Ceniarth find it valuable to engage in blended finance?

 

Blended finance is the most valuable tool that we have to increase the scale of our impact as a stand-alone family office. Ceniarth manages approximately USD 450 million to advance sustainable development that reaches marginalized, primarily rural, populations. It is a small amount of money in comparison to the scale of the challenges at hand affecting global poverty, racial and social injustice, and climate change. However, blended finance allows us to achieve significant leverage from our commitments by incentivizing others, such as development finance institutions (DFIs), foundations, and impact investors, to participate in below market-rate transactions to increase the investments towards SDG related projects in developing countries.

 

## From Ceniarth’s original three investment approaches, one of which was a more traditional market-rate impact mandate, the firm is now focused on impact-first investments and supporting higher risk projects and pooled interventions. What inspired this decision, and how does blended finance enable this? 

 

When Ceniarth launched 8 years ago, Diane Isenberg, our founder, was steadfast in wanting our capital to have a demonstrative impact on the people living in rural poverty but was open-minded as to how we went about this. As a result, Ceniarth built a portfolio with a wide range of impact investing modalities from more conventional public equity and private equity commitments to our higher risk Program Related Investment (PRI) offerings.

Over time, we saw our conventional impact investments do well financially. But, when we asked ourselves, “Are we doing the most we can with our capital?” we realized there was more we could do to increase investment into vulnerable communities. Similarly, our PRI making was highly impactful in delivering pilot loans to early stage enterprises in developing economies, but it came with significant risks of capital impairment, which conflicted with one of our objectives, which is to recycle most of our money over time.

We found that our most successful impact-first investments fell between the ends of this continuum. This includes funds and enterprises that have lower risk profiles but need a lower cost of capital. For example, we have a USD 5 million investment in MCE Social Capital, a non-profit impact investment fund that focuses on lending to high impact microfinance institutions and small, growing social enterprises. MCE has a long track record of successfully returning capital to investors but does require a below-market cost of capital to on-lend at reasonable rates.

So, we are in the process of transitioning our portfolio towards 100% impact orientation. Our experience has told us we can be impact-first while earning modest returns and being catalytic, using blended finance to incentivize other public and private investors to participate in transactions by leveraging our investment. We aim to continue to deliver capital at a cost that allows fund managers and enterprises to stay focused on the most underserved communities without feeling pressured to drift up-market. 

 

## Ceniarth [has participated](https://www.convergence.finance/institution/556a8e54-d228-4db4-81b1-acc31ea14ae0/view/historical-deals/investments "Convergence Member | Ceniarth") in large and small deals, ranging from USD 4 million to upwards of USD 200 million in blended finance. What are some lessons and insights gained from participating in transactions that vary in size?

 

For investors, irrespective of deal size, transactions tend to take the same amount of effort for monitoring and underwriting a deal. This is a big reason why Ceniarth deploys much of its capital via funds and intermediaries. It would be inefficient for us to try and build a substantial book of smaller, direct loans to enterprises. We do this to some degree for the learning value and because capital is so scarce for pilot debt, but it is a sub-optimal approach. In general, our sweet spot is supporting impact fund managers with their earliest funds or supporting niche managers with specialized mandates. Our check size can be meaningful and catalytic for a fund trying to raise USD 20-100 million but is less valuable for more established managers seeking to close funds much larger than that. 

 

## Ceniarth has deployed millions into gender-focused investments. How does Ceniarth identify a women-centered investment initiative? What are the big questions the team is exploring now when it comes to gender lens investing? 

 

Given the gender dynamics in many of the regions we invest in, our mission to address rural livelihoods has become synonymous with investing in women; women as customers, entrepreneurs, service-providers, advocates, and decision-makers. Many of our investees have had an explicit emphasis on women, even before the field began labeling this activity as gender lens investing. For example, we have invested over USD 10 million with [Global Partnerships](https://www.convergence.finance/resource/af090575-76ec-49ed-95b2-d403023dfa32/view "Convergence | Global Partnerships Investment Funds Case Study"), US-based non-profit impact investment firm, in large part because of their women-centered investment initiatives and impact assessment process. Our investments in Pro Mujer (USD 2 million of revolving credit), WaterEquity (Ceniarth invested USD 3 million in their newest fund), and Convergence design funding grantee, Women’s World Banking Capital Partners (Ceniarth invested USD 1 million in their first private equity fund), are based on their explicit focus on women as customers for financial services. These organizations existed before the market adopted the term gender lens.

One question we are now grappling with is how to balance a gender lens view knowing many of the poorest and most vulnerable women in the world live in some of the most conservative societies? Diane is outspoken about how the gender lens movement is taking an overly western centric view of what gender equality should look like today and raises how the westernization of gender equality is resulting in many investors allocating money to the less challenging gender lens opportunities – for example, investing in western companies with female leadership and board membership. On this front, Ceniarth is led with the viewpoint that the gender framework for poorer women in emerging markets will need to look different based on their respective social and cultural fabric. Just as there is finally an acknowledgement that patient capital is required more generally, practitioners in the field need to take a more patient and longer-term view on gender across developing markets. 

I am also happy to share that Ceniarth recently partnered with [Value 4 Women](https://v4w.org/ "Value 4 Women") (V4W), an advisory firm specializing in bringing a gender lens to business practices. In the next few months, V4W will be working with our portfolio companies directly to offer guidance and assistance.

 

## For Ceniarth, achieving a level of financial return is as important as creating lasting impact. Can you highlight the types of terms or arrangements that have allowed your capital to be more catalytic?

 

To clarify, recycling our capital and earning a modest financial return is very important to us in a transaction, but not necessearily generating a commercial level of return. We explicitly invest in opportunities where more mainstream, market-rate capital does not go. That said, typically, our capital is most catalytic when it takes a subordinate and/or first loss position that can be leveraged to attract senior lenders to a transaction. Depending on the perceived risk of an opportunity, Ceniarth can often attract senior lenders to a transaction at a 5:1 or even 10:1 ratio. For example, a USD 5 million subordinate investment (USD 3 million from Ceniarth) in Global Partnership’s most recent blended Impact-First Development Fund unlocked an additional USD 50 million from the U.S. International Development Finance Corporation. This type of leverage is on the high side, given Global Partnership’s strong historical performance, but a real example of how blended finance can be used to scale transactions. 

Our pilot debt transactions, often deployed via our Foundation’s PRI pool, are also highly catalytic, given the amount of risk we shoulder that others cannot. These transactions provide capital to underserved enterprises and help them understand what types of financial forecasting and reporting are required to work with professional, sophisticated lenders. As these enterprises successfully repay us, they in turn build a track record that can be assessed by other lenders.

 

## Ceniarth employs a unique model, what advice would you give to other family offices that are unsure about engaging in blended finance? 

 

A few suggestions come to mind when I think about general family offices:

__- Get clear on your driving cause.__ Know why you are approaching blended finance; is it with the interest to grow your impact investment portfolio or to channel your philanthropic endeavors? Knowing what you are trying to do with your capital will fair you well. 
__- Start small.__ Find other practitioners who are taking more flexible positions in the capital stack and invest with them to get familiar with the market and what works for you.
__- Ask the additionality question.__ It is important to remember that your money must work to mobilize additional capital, so the question, “Is my capital getting leverage and/or bringing down the cost of capital?” must be asked early on. If your dollar is just a dollar in a deal, you should not be involved. 

Finally, I encourage all family offices thinking about engaging in blended finance to come talk to us. It is not as hard as it may seem to be catalytic as a family office in the blended finance space, but only a handful of us are doing it. Ceniarth has spent years building its network with other investors, especially foundations and DFIs, that can support deals and help evaluate the best terms for impactful transactions targeting frontier and emerging markets. This year, we are focused in doing whatever we can to share our learnings and knowledge, so we are happy to speak to others that want to engage in blended finance.

 

## How do you hope Convergence continues to support participants in blended finance and its member network?

 

Convergence does a commendable job at both highlighting transactions in the blended finance market and educating new impact investors on the strategies and tactics that are most effective in structuring and fundraising blended transactions. Currently, we see the most acute need in blended finance for more impact-first investors who are willing to take subordinate, catalytic positions. There is an encouraging amount of senior, development finance and other institutional capital waiting to be deployed if junior tranches can be fully funded. Continuing to identify new sources of first loss capital – most likely from foundations and family offices – is critical to the field. Convergence’s Deal Platform is particularly beneficial for offices that might not have a big in-house team searching for new investment opportunities. It also helps identify other international collaborators that are working on these types of deals (e.g., DFIs), and new interesting public sector vehicles. Ceniarth is very grateful to Convergence for highlighting these opportunities and potentially identifying new participants, and we encourage others seeking to get involved to think about employing such tools.

 

__Are you interested in becoming a member of Convergence's global network for blended finance? [Let us know](https://www.convergence.finance/sign-up "Convergence | Sign-up")!__

Convergence recently connected with Greg Neichin, Director of Ceniarth, to learn more about their impact investing approach and what makes blended finance an attractive tool to build their investment portfolio and meet their impact objectives.

Member Spotlight with Greg Neichin, Director, at Ceniarth

Member Spotlight with Greg Neichin, Director of Ceniarth

__Toronto, April 15, 2021 -__ Today, blended finance network Convergence awards a feasibility study grant to PT. Kandelia Alam (KLIA) to explore a blended finance solution in Indonesia focused on __Sustainable Development Goal (SDG) 15 – Life on Land__. This grant is awarded through the [Asia Natural Capital Design Funding Window](https://www.convergence.finance/design-funding/open-window/asia-natural-capital-open-window%5D "Convergence | Asia Natural Capital Design Funding Window"), funded by the RS Group.

The blended finance vehicle will aggregate financing opportunities for forestry concessions and allow concessionaires to work together on sustainable landscape development. Activities include sustainable forest management, ecosystem services, building biodiversity corridors, developing non-timber forest products, and promoting ecotourism in Kubu Raya. KLIA is a partner of IDH - The Sustainable Trade Initiative and part of IDH’s ‘Production, Protection, Inclusion’ Compact in the Kubu Raya District, West Kalimantan, Indonesia. 

“This is a solution from Indonesia for Indonesia. We are delighted to fund a feasibility study grant toward a solution that aims to foster increased private sector financing for natural capital preservation, and that will set a strong example for sustainability and ecotourism in the country,” says Robert van Zwieten, Managing Director for the Asia-Pacific region at Convergence.

Agricultural croplands and rangelands represent the biggest challenge to biodiversity, and demand [55–69%](https://globalcanopy.org/wp-content/uploads/2021/01/LBIN_2020_EN.pdf "Canopy | The Little Book of Investing in Nature") of global conservation financing needs. Yet, few investable projects in the market exist that focus on protecting biodiversity, restoring forests, and reducing deforestation and degradation, making it difficult for commercial investors to participate. Regulatory complexities, challenging repayment models, and small ticket sizes further limit the participation of private investors.

KLIA, in collaboration with IDH, will lead a coalition of concessionaires in managing forests sustainably, which will be made investable through aggregation. The vehicle is expected to advance reforestation of over 5,000 hectares of degraded area, protection of over 40,000 hectares of mangroves, peatland, and forests, and support the livelihoods of nearly 25,000 people. Its success will also protect key species, such as the proboscis monkey native to Borneo.

PT. Kandelia Alam (KLIA) is an Indonesian private entity with significant experience in sustainable forestry in Indonesia and is a concession holder in Kubu Raya District, West Kalimantan. “Managing forests sustainably requires commitment and consistency” say Fairus Mulia, KLIA. KLIA has done significant work in partnership with IDH to establish the groundwork for this project. IDH brings together businesses, governments, farmers, and communities to build sustainable governance models in landscapes. Through the ‘Production, Protection, and Inclusion’ approach, IDH creates areas where agricultural products are grown sustainably while protecting and restoring natural resources and helping communities thrive.

“Innovation and investment are crucial to support sustainable landscape management. Convergence can help forestry concessions in Indonesia towards sustainable forest management that benefits the environment, economy and social inclusion”, says Fitrian Ardiansyah, Global Envoy for Nature-based Solutions at IDH – the Sustainable Trade Initiative and IDH’s Executive Chairman for Indonesia. This solution builds on achievements by IDH – the Sustainable Trade Initiative and partnerships between government, businesses, and civil society in Indonesia to improve sustainability in trade and value chains.

Protecting and restoring natural capital is an essential component of sustainable development for the private sector, local communities, and government. This work demands sponsoring and enabling innovative solutions that prioritize scale and private participation. Convergence’s Design Funding Program supports organizations to design and launch blended finance solutions that address these priorities. 

__About Convergence’s Design Funding Program__

Convergence’s Design Funding Program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions targeting SDGs. Funded by the RS Group, [The Asia Natural Capital Design Funding Window](https://www.convergence.finance/design-funding/open-window/asia-natural-capital-open-window "Convergence | Asia Natural Capital Design Funding Window") supports blended finance solutions that find new ways to enhance and protect the world's stock of natural assets, including water, land, soil, air, plants, and animals, by attracting private investment at scale. This design funding program is the first of its kind focused on the Asia and Pacific, anchored by RS Group at USD 3 million. The window is currently accepting applications. The next deadline is June 3, 2021. 

__About Convergence__

Convergence is the global network for blended finance. On top of market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. To learn more, visit [www.convergence.finance](https://www.convergence.finance "Convergence | Home").

__Media Contact__
Namrata Narayan
Head of Communications
namrata.narayan@convergence.finance

Convergence awards a feasibility study grant to PT. Kandelia Alam (KLIA) to explore a blended finance solution in Indonesia focused on SDG 15 – Life on Land.

Convergence Funds Sustainable Forestry in Indonesia

Convergence Awards Design Funding to Accelerate Sustainable Forestry and Ecosystem Restoration in Indonesia

Design Funding grant recipient Albion Capital, a Brazilian asset management firm, and Órigo Energia, have successfully closed Green FIDC Solar SD at USD 35.8 million (BRL 201 million), the first FIDC issued as a green bond in Brazil. The announcement comes two weeks after the close of Brazil’s first Green CRI, a spinoff from the Green FIDC, which secured USD 14.3 million (BRL 80.1 million). Together, the two vehicles raised USD 50 million (BRL 281.1 million). 

The Green FIDC allows clean energy and energy efficiency projects to secure financing based on future cash flows from energy sales. The Green FIDC builds on a Brazil-specific instrument, the Fundo de Investimento em Direitos Creditórios (FIDC), which is used by companies to raise capital by securitizing receivables.

Albion Capital and Climate Policy Initiative [received design funding](https://www.convergence.finance/news-and-events/news/4a00hVBqxQoTFuJ7KMs2kK/view "Convergence | Grant awarded to Albion Capital & Climate Policy Initiative to develop an innovative asset-backed securitization for green projects in Brazil") in 2019 for the Green FIDC concept, which was proposed and developed as part of the Global Innovation Lab for Climate Finance (the Lab). Design funding was used to support the research, structuring, and fundraising activities required to bring the Green FIDC model to Brazilian capital markets.

“What attracted us to this concept was how Albion Capital adopted an instrument already familiar to Brazilian investors, the FIDC, and applied it to green projects for the first time,” says Joan Larrea, CEO of Convergence. “Making it possible, through blended finance, to attract local institutional investors in Brazil – not only a large financial market but also a critical country to our global climate goals – into climate-related projects.”

Renewable energy and energy efficiency projects are a crucial component of Brazil’s 2030 climate goals. The country aims to increase energy efficiency by 10% and for non-hydro renewables to account for 23% of total power generation.

The Green FIDC and the Green CRI are each the first of their kind of security to be certified green for the Brazilian market. Certification is handled by the rigorous global standards of the Climate Bonds Initiative. 

For next steps, Albion Capital is currently investigating an expansion of other variations of the Green FIDC concept into different vehicles that match investors’ risk-return preferences. The goal is to allow a faster and simpler scale-up process for other sectors, such as water infrastructure.

__For more information, read the [press release](https://www.climatepolicyinitiative.org/press-release/lab-green-fidc-closes/ "CPI | Brazil’s first FIDC and CRI issued as climate bonds raise USD 50 million").__ 


Design Funding grant recipient Albion Capital, a Brazilian asset management firm, and Órigo Energia, have successfully closed Green FIDC Solar SD at USD 35.8 million (BRL 201 million), the first FIDC issued as a green bond in Brazil.

Design Funding Recipient Closes Brazil’s First Green FIDC

Design Funding Recipient Closes Brazil’s First Green FIDC at USD 35.8 Million

In 2017, Convergence awarded Clarmondial a proof of concept design grant to develop and launch The Food Securities Fund (FSF), an open-ended private credit investment fund focused on providing working capital loans to sustainable local agriculture companies (e.g. cooperatives, traders, and processors). Today, we are thrilled to share that the FSF has officially [launched](https://www.clarmondial.com/fsf_launch_first_investment/ "Clarmondial Launches Food Securities Fund to Support Responsible Agricultural Aggregators ") and started operations. 

The Food Securities Fund kicks off by making its first investment in coffee production in East Africa, reaching almost 4,000 smallholder farmers operating in agroforestry systems, utilizing organic and regenerative practices.

[Learn more](https://www.convergence.finance/design-funding/grant-portfolio/5WUCyaTqWkqcwAGCe822uk/view "Convergence | Design of Food Securities Fund, an open-ended investment fund for private credit in agriculture") about Convergence’s design funding award to Clarmondial. 

*__Convergence’s design funding program is the only funding program exclusively providing design stage grants for innovative blended finance solutions. Since the establishment of the program, Convergence has awarded USD 6.8 million in funding to 21 solutions, which have gone on to mobilize over USD 618 million from public, philanthropic, and private investors. Explore our [open design funding windows](https://www.convergence.finance/design-funding "Convergence | Design Funding Program"). __*


Clarmondial Launches Food Securities Fund to Support Responsible Agricultural Aggregators

The infrastructure sector is chronically underfunded in developing countries. Barriers to infrastructure investment include unstable investment and regulatory environments, underdeveloped local capital markets, and a lack of investible deals. 

[The Private Infrastructure Development Group](https://www.pidg.org/ "PIDG Group") (‘PIDG’) is an innovative infrastructure project developer and investor delivering pioneering, sustainable, and affordable infrastructure in the poorest and most fragile countries in Sub-Saharan Africa and South and Southeast Asia. PIDG has a deliberate focus on financing infrastructure projects through local capital and credit markets, building capacity and resilience in frontier markets across these regions.

PIDG has evolved significantly since its inception. As PIDG enters its 20th year, and sets new sights to create investment-ready, bankable infrastructure opportunities across Sub-Saharan Africa and Southeast Asia, we connected with Philippe Valahu, CEO of the PIDG Group, to learn more about PIDG’s evolution, investment mindset, and vision for blended finance and infrastructure development. 

 

## What led to PIDG’s establishment? Could you walk us through PIDG’s evolution to date?

 

PIDG exists to enable sustainable infrastructure projects in some of the most challenging jurisdictions in the world, and started out as a pilot, and as one entity – our debt fund, the Emerging Africa Infrastructure Fund (EAIF). EAIF was created due to a lack of long-term commercial debt (15–20-year money) to fund infrastructure projects. Over the years, as EAIF proved its purpose and established a track record, other ideas emerged, and other entities were brought on to the PIDG platform to complement EAIF. Today, PIDG has five entities: the debt fund (EAIF), GuarantCo (the local currency credit solutions arm, set up 15 years ago), InfraCo Africa and Asia, which are two early-stage project development companies, and our technical assistance arms: The PIDG Technical Assistance and DevCo. DevCo sits within the International Finance Corporation (IFC) but is managed by PIDG. Each entity was set up as a response to gaps in the market to develop, finance, and take infrastructure projects to successful financial closure and construction. 

 

## How do the various PIDG entities come together to support a project across its lifecycle and capital structure? 

 

Since the establishment of PIDG Limited (PIDG Group) in April 2018, which has its own Board of Directors, there has been improved governance, which has helped us overturn barriers or operational limitations we once faced. 

What does this mean in practice? If there is a transaction in the solar energy space in a country like Chad, that project needs a few things: it needs early-stage project development (equity), debt, and technical assistance. For projects of this nature, there are times where it is necessary to bring in all our entities to give everything that project needs to reach financial close and break ground to generate tangible impact on human lives. However, we do not always do so, because that would crowd out other players in the market. 

 

## How do you know when to pull in other participants and when to keep business within PIDG? 

 

In these difficult markets, we find out quite early in the process. Consider the example above. On the project development side, we would be on a wild goose chase to find a project developer willing to place USD 5-6 million in equity to develop the project and take it towards financial close. In such cases, we know we must rely on one or two players that are linked to the African Development Bank (AFDB) or the IFC, as private sector investors are not willing/positioned to do this unless they team up with a multinational development bank or us (InfraCo). On the debt side, no commercial investor is willing to commit 15-20-year money in such a difficult market. 

With that said, there is no simple model to assess which entities from the group need to be involved. We lean on our due diligence to assure our role is additional. 

 

## How does PIDG use blended finance structures and archetypes to de-risk projects for commercial investors? What are some of these risks that the various offerings help mitigate? 

 

Here, it is worth highlighting the Kigali Bulk Water Supply Project, the first bulk surface water supply project in Sub-Saharan Africa using a public-private partnership (PPP) model. It was developed by Kigali Water Limited (KWL), a fully owned subsidiary of Metito, which is a global provider of intelligent water management solutions based out of Dubai. This project reached financial close in 2017, however, what is more noteworthy is that it reached its Commercial Operations Date (COD) in January this year, which means potable water is now being delivered to the population in Kigali. This is a remarkable accomplishment, given much of the construction and monitoring by the lenders, including EAIF, took place during 2020, 9 months of which were plagued by the COVID-19 pandemic. 

Convergence’s [Case Study on EAIF](https://www.convergence.finance/resource/2e3d40a3-8d79-417c-b253-82714fec31ca/view "Convergence | Emerging Africa Infrastructure Fund Case Study") details this project well. Essentially, EAIF and AFDB provided USD 40.6 million of the capital cost: USD 38 million of senior debt and USD 2.6 million of junior debt, with all loans on 18-year terms. Metito provided the balance in equity finance. 

DevCo did the upstream work to advise the government on the regulatory framework required to allow a water sector PPP. It did the tender and earned the support of a private sector operator and concessionaire (Metito) in a very difficult sector with a 27-year concession. At one stage, what Metito and others in the deal realized was that an element of grant funding was needed to make the model work. Through our technical assistance offering, PIDG put in place a viability gap funding (VGF) package of USD 6.5 million dollars to make the project bankable. This is one of the few examples of a water PPP getting off the ground using a blended finance structure and grant capital to create an investible transaction to improve water connections, to get fresh, clean water to communities that would otherwise not be able to afford this type of access. This is how blended finance should be used.

 

## In 2019, PIDG set a 5-year strategy to continue to overcome investment barriers in developing countries. Can you tell us more about this strategy and its implementation to date?

 

Two key tenets of our strategy are to achieve scalability and replicability. We are focused on creating economies of scale, given capital for early-stage project development can be scarce. The area that is giving us a lot hope is the off-grid sector: micro-grids and mini-grids. The sector itself is designed for scale and adoption, so there is a lot of room to show that these solutions are affordable across different income levels, and there is demand for getting sustainable electricity to communities that have historically had to rely on high-cost energy solutions that are more damaging to human health and the environment. 

 

## How does GuarantCo help advance long-term infrastructure financing in local currency and domestic resource mobilization?

 

This is an area where we are doing what very few others are. GuarantCo is as much about infrastructure as it is about capital market development – developing local currency markets. GuarantCo approached Nigeria as a testing ground and executed several transactions in Nigeria to familiarize itself with the market. Once it knew the market and developed adequate awareness for its product, it began to work with the Nigerian Sovereign Investment Authority (NSIA) to set up InfraCredit Nigeria, offering credit enhancement for domestic bond issuances in Naira (NGN) for the financing of brownfield and greenfield infrastructure projects. 

InfraCredit Nigeria did its first transaction soon after it was set up. The first deal (~USD 40 million) attracted 13 domestic pension funds and six domestic insurance companies, who for the first time were investing in the infrastructure asset class. Before this deal, that had not happened before. To make this happen, GuarantCo worked with NSIA to build up InfraCredit Nigeria, coordinated with regulators to create an infrastructure asset class to attract institutional investors like pension funds and insurance companies, and provided training to these investors to better understand this asset class and the associated risks. As a result, there is some issuance taking place in NGN where institutional investors no longer need credit enhancement. Now, the challenge is a lack of pipeline of bankable transactions of this nature. 

 

## What does success mean to PIDG? What are some of the metrics you use to measure success?

 

Overall, we articulate our impact in terms of outcomes for people – with focus on end users and jobs, wider economy, mobilizing local investors and transforming markets through demonstration that enables future finance flows to infrastructure. So, success looks different based on the rationale behind each project. This is best illustrated when looking at projects like the Kalangala Infrastructure Services (KIS), established to support the residents of Bugala Island, situated on Lake Victoria in Uganda’s Kalangala District. Prior to KIS, Kalangala was identified as one of Uganda’s poorest districts, lacking safe regular access to the mainland, reliable electricity, and clean water. KIS was initially set up to put in place a private ferry service to bridge access between the island and mainland Uganda. If you are familiar with Uganda, every year without fail, hundreds of people lose their lives due to overcrowding and a lack of life vests on these ferry boats. It is devastating. The introduction of this private ferry now delivers a dependable service that allows residents to travel safely from Bugala to the mainland to sell their produce. 

 

## Some of PIDG’s owners, including the Australian Government and Government of Sweden, are interested in gender equality. How does PIDG apply a gender lens?

 

Today, within PIDG we have a gender taskforce to identify actions to further empower women through our investments, and to deliver on PIDG’s Gender Equity Action Plan, which is based on (i) safeguarding women and girls, (ii) gender lens investing, and (iii) gender equity within PIDG. 

In the past 2 years, PIDG put both climate and gender considerations at the core of its investment approach. At the Group level we introduced climate and gender KPIs for each company. At the level of investment decision making, compliance with PIDG Climate Change Standards and Gender Ambition Policy are two of only three minimum compliance thresholds for any deal to be considered (the other being additionality). The development impact rating of each deal is heavily influenced by its expected outcomes for the planet and for women. Deals that directly empower women and demonstrate innovative climate solutions receive bonus ratings and benefit from increased credit limit and higher risk appetite. Conversely, analysis of climate and gender related risks is prioritized. 

The PIDG Gender Ambition Policy broadly aligns with the 2X Challenge and we have tailored the approach to infrastructure projects. We screen all projects for both gender risks and potential for positive gender outcomes against five gender lens domains: company and project governance, workforce, supply chain, consumer market (products and services) and community. The approach is showing some results in bringing about innovative solutions that demonstrate gender lens in infrastructure.

Some examples of PIDG projects that have applied a gender lens and consequently empowered women include the [Zimbabwe Border Crossing Project](https://www.eaif.com/pidg-company-emerging-africa-infrastructure-fund-fills-funding-gap-in-zimbabwe-border-crossing-project-set-to-stimulate-trade-and-business-investment/ "PIDG | Zimbabwe Border Crossing Project"), to stimulate trade and dependable transit – with a dedicated focus on women traders, safeguarding and women in the workforce, and [Net1](https://infracoasia.com/wp-content/uploads/2020/11/201116-InfraCo-Asia-Investments-contributes-to-growth-financing-package-for-rural-broadband-roll-out-in-Indonesia-1.pdf "PIDG | Net1"), delivering broadband access in underserved regions of rural Indonesia, focusing on the supply chains by enabling women to open Wi-Fi kiosks for internet access to boost their income. 

 

## PIDG is approaching its 20-year anniversary. How is the team reflecting on the past 20 years, and if you had to look 20 years ahead, what does the future look like for PIDG and blended finance?

 

On the one hand, the future sometimes looks depressing. On the other, it is filled with hope. 

On the depressing note, the reasons and rationale that led to the establishment of EAIF are just as valid today as they were two decades ago. So, it begs the question: has the needle not moved? In some areas, no. Today, if you look at the market in Sub-Saharan Africa or South and Southeast Asia, there are, maybe, at best, three commercial investors that can provide 15-20-year money; and they usually require some sort of guarantee or insurance. Others have retrenched after the 2008 financial crisis and due to the new regulations to curb risk. On the other hand, if you look at the work GuarantCo is doing today and had told me 5 years ago we would have set up an entity like InfraCredit, I would have laughed. But that has happened because we have coordinated with regulators and pension funds. We have demonstrated it can be done in difficult markets. I find that hopeful. 

Right now, in development finance, everyone wants to talk about the ‘Billions to Trillions’ agenda. For us, interest in this discussion is expiring, because we know what is needed to get to where we need to be. What we should be asking is how do we generate a pipeline of bankable transactions that are risk adjusted for institutional investors to come in? And how do we mobilize domestic savings in Africa and Southeast Asia like the InfraCredits of the world? And how do we focus all these efforts on low carbon, climate resilient and inclusive infrastructure that enables a just transition towards net zero, with the greatest socio-economic needs and aspirations? 

Blended finance, more specifically, is having a moment in the spotlight. Everyone wants to talk about it, everyone is saying they are doing it, but few are really thinking about what it is. That is somewhat frustrating for us, but perhaps more frustrating for organizations like Convergence. In 20 years, I would hope we achieve: 

1. wider recognition of what blended finance is and is not; and it is certainly not a means to prop up investor return or indirectly provide grant funding to a government; 
2. improvements in our tender process and our ability to offer more flexible options (e.g., VGF); and
3. greater sophistication in our understanding and interpretation of investment risk associated to Sub-Saharan Africa and South and Southeast Asia 

As for PIDG, in 20 years, I really hope it has put itself out of business. We dare to dream! 

 

*__Are you interested in becoming a member of Convergence's global network for blended finance? [Sign up today](https://www.convergence.finance/sign-up "Convergence | Sign-up").__*

Convergence recently connected with Philippe Valahu, CEO of the PIDG Group, to learn more about PIDG’s evolution, investment mindset, and vision for blended finance and infrastructure development.

Member Spotlight with Philippe Valahu, CEO of PIDG

Today, we celebrate International Women’s Day. March 8th is a day on which we take stock of the achievements to advance gender equality, acknowledge what remains unrealized, and call to action leaders across industry for improved governance, dialogue, and principles to accelerate opportunities that empower women and girls in society and the market. 

As a field builder, Convergence developed its own Gender Strategy in 2020 to weave gender equality into the fabric of how the firm works and supports capital providers and deal sponsors. We took this step with support from the Government of Australia, inspired by a workshop delivered by Criterion Institute. The groundwork we did internally enabled the team to start having deeper conversations with participants in the field around how they apply a gender lens to their investment mandate and deal structuring activities. By proactively bringing up gender in conversations with all our stakeholders, we identified several trends and insights that we share with you today.

 

## 1. Donors are vanguards of gender mainstreaming in blended finance

 

Concessional capital providers have made considerable progress in mainstreaming gender throughout their grant giving and investment processes. These funders are increasingly encouraging deal sponsors to integrate gender equality as a core consideration in the design process of new financial vehicles, rather than treating it as another checkbox on due diligence requirements. 

Funders such as the Government of Australia (DFAT), USAID, and the Bill & Melinda Gates Foundation, incentivize intermediaries to apply a gender lens by offering technical assistance grants to draft gender assessments, gender frameworks and gender action plans, and for gender awareness trainings. Reinier Musters, founder and CEO of Impact Credit Solutions, a Singapore-based fintech enabling small business lending in Southeast Asia, and Convergence member, shared with us, “The United States International Development Finance Corporation and DFAT supported us in designing a gender assessment framework for our Indonesian Resilience Fund. As part of this process, we completed a training program led by the Financial Alliance for Women, where we discovered the huge and untapped opportunity to launch a women-focused lending program in Indonesia. We hope our pilot project will help us further understand the need and opportunity in this critical segment.”

Beyond incentivizing deal sponsors to adopt a gender lens, catalytic capital providers and investors are collaborating more strategically to improve how gender impacts of investments are measured. They have published several new toolkits that offer guidance on current benchmarks and indicators. In discussions with deal sponsors to date, the two most referenced resources on measuring gender are “[How to measure the gender impact of investments](https://www.convergence.finance/resource/3LnbRNNKGrs8uw0VaBKLyr/view "Convergence | How to measure the gender impact of investments"),” a joint publication by the CDC Group, the Global Impact Investing Network (GIIN) and the 2X Challenge, and the [Gender Assessment Methodology](https://www.womensworldbanking.org/take-action/gender-assessment-methodology/ "Women's World Banking | Gender Assessment Methodology"), a tool developed by Women’s World Banking. 

 

## 2. Being gender smart is good for business 

 

We know gender smart investment yields [both](https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity "McKinsey | Delivering Through Diversity in the Workplace") social and financial returns. Over the past year, many Convergence members, among them Global Affairs Canada, SME Nigeria, AiiM Partners, Calvert Impact Capital, and Developing World Markets, have taken the stance that adopting a gender lens yields greater social impact, improves decision-making processes, attracts more talent to organizations and businesses, and can be a strategy for financial [outperformance](https://www.calvertimpactcapital.org/insights/gender/report "Calvert Impact Capital | Just Good Investing"). 

Convergence’s design funding grant recipient, [Women’s World Banking Asset Management](https://www.womensworldbanking.org/ "Women's World Banking") (WAM), is a good example of the commercial benefits of gender lens investing. In 2017, WAM launched the world’s first private equity fund (WWB), raising over USD 50 million from investors to deploy capital exclusively to women-focused financial providers. After demonstrating a solid track record, WAM launched a follow-on fund called [Women’s World Banking Capital Partners II](https://www.convergence.finance/design-funding/grant-portfolio/5CSvs9Xs76MgQygE2cOke2/view "Convergence | Design of Women's World Banking Capital Partners Fund II") (WWBCP II), that uses blended finance to reach investees in lower-income countries with more diverse products and services. WWBCP II achieved a [first close](https://www.convergence.finance/news-and-events/news/6V666kYoHBiRdUpbkmco50/view "Convergence | WWBCP II Achieves Closing at $75M") of USD 75 million in 2020. With Convergence’s support, the fund developed a public gender assessment methodology to help investees apply a gender lens to their operations. 

Given that adopting a gender lens makes financial sense, we expect more deal sponsors and investors – whether public or private – to strengthen their commitments to gender equality.

 

## 3. Design stage funding proves crucial to advance gender smart solutions

 

Design funding helps early stage blended finance vehicles reach the market by providing grants for feasibility testing or establishing proof of concept. Convergence’s experience through its [Design Funding Program](https://www.convergence.finance/design-funding "Convergence | Design Funding Program") further substantiates that it is [easier](https://www.convergence.finance/resource/4e56568b-29f7-4ca1-a54b-3b7ee1748de8/view "Convergence | Gender as Material to Infrastructure Projects: Reaching Better Outcomes by Applying a Gender Lens from Project Inception") to adopt a gender smart approach in the early development stages than to apply a gender lens or include gender specific process metrics in the later stages of designing a blended finance intervention. In recent years, Convergence has also witnessed greater interest from funders in gender, and an increase in the number of design funding proposals targeting gender equality outcomes. With the field still emerging, donors and investors should continue to prioritize a gender lens through early stage grant support to aid market acceleration and increase the size and scale of projects that are focused on gender. 

For more information about our experience providing design stage grants to support gender smart blended finance solutions, please email us at design.funding@convergence.finance. 

 

## 4. Gender-based violence is still uncharted territory in blended finance

 

While increasing women’s financial independence and their participation in decision-making processes are becoming common goals among blended finance vehicles, [few](https://www.convergence.finance/news-and-events/news/76e3XDOFBRq3nn4AFajIkW/view "Convergence | What can the Blended Finance World Do to Address Gender-based Violence?") explicitly focus on combatting gender-based violence (GBV). With that said, a growing number of actors are making the case for investing in the reduction of GBV. Criterion Institute, in partnership with superannuation fund Christian Super, recently published a [new framework](https://criterioninstitute.org/resources/a-framework-for-screening-portfolios-for-risks-posed-by-gender-based-violence "Criterion Institute | A Framework for Screening Portfolios for Risks Posed by Gender-Based Violence") for screening portfolios for risks posed by GBV. The publication states the underexplored links between culture change and market risk that could markedly change how investors of all types assess market risk. 

 

## Our bottom line: Gender equality is coming to the fore in blended finance

 

In blended finance, gender equality has evolved from a ‘nice-to-have’ social impact target to a goal in and of itself. For a growing number of organizations, applying a gender lens is no longer the exclusive responsibility of the impact team instead gender equality is a shared consideration across teams responsible for financial structuring, business development, and fundraising. RENEW, an impact investment and advisory firm operating out of Addis Ababa, Ethiopia, is an example of one such organization. Ask any member of RENEW’s team about how RENEW promotes gender equality and gender-smart policies, and you will get an extensive answer, propped up with readily available gender-disaggregated data. Can you say the same about your colleagues?

Institutional investors are also thinking critically about advancing gender equality. Société Générale, Deutsche Bank, and Bank of America have all invested in [multiple](https://www.convergence.finance/news-and-events/news/7qPqWJompgLDEMLeyNDk0H/view "Convergence | Who are the top investors in gender-related blended finance deals?") blended finance transactions with a focus on gender. Others have taken steps forward on another important dimension of gender equality; diversity in the workplace. For example, over 300 financial services firms have signed the [Women in Finance Charter](https://www.fnlondon.com/articles/societe-generale-signs-up-to-women-in-finance-charter-20190221 "News: Women in Finance Charter"). Banks, pension funds, and insurance companies should assess how integrating a gender analysis in their financial decision-making could [improve](https://www.calvertimpactcapital.org/insights/gender/report "Calvert Impact Capital | Gender Report") their financial performance. 

We look forward to continuing our efforts to remind investors and those seeking capital to use a gender lens to spot risks and opportunities that otherwise may go unobserved, and to the many more conversations with our network around how to advance gender equality through blended finance.

 

*__For more insights on blended finance and gender, read our [blog series](https://www.convergence.finance/news-and-events/news/7qPqWJompgLDEMLeyNDk0H/view "Convergence | Gender in Blended Finance Series").__*

This International Women's Day, Convergence reflects on  conversations it's had to date with stakeholders in the filed to share trends and insights on how market participants are integrating a gender lens.

Gender Equality is Coming to the Fore in Blended Finance

In February 2021, the UK Foreign, Commonwealth and Development Office (FCDO) launched the COP26 Blended Finance Platform, supported by CDC Group and Convergence. This initiative is focused on identifying blended finance solutions that mobilize more climate finance and investment to emerging markets and developing countries, specifically targeting institutional investors, asset owners and asset managers. The Platform is designed to help deliver additional financial commitments to climate/environment structures and projects that can be showcased and achieve financial close at or following [COP26](https://ukcop26.org/ "COP26") in Glasgow in November 2021, hosted by the UK Government. 

 

## Impetus for the Initiative 

 

The annual investment needs for climate and environment projects in developing countries are estimated by UNCTAD at USD 1.2 - 2 trillion. Despite at least 35% of current development finance and blended finance flows targeting climate action, there is strong consensus that blended finance remains an under-utilized tool to mobilize private investment to climate finance in developing countries. 

Blended finance helps create market-equivalent risk-return investment opportunities to catalyze private investors to invest into projects that would otherwise not meet their investment criteria, especially for developing countries where the median sovereign risk rating is S&P-equivalent “B,” a level of risk beyond the mandate of most asset owners and asset managers. 

According to Convergence’s database – the world’s largest database of [blended finance transactions](https://www.convergence.finance/blended-finance/2020 "Convergence | State of Blended Finance 2020 Report") – over 600 blended finance transactions have mobilized nearly USD 144 billion in aggregate financing. Climate finance transactions aligned to Sustainable Development Goals (SDGs) 7 (Affordable & Clean Energy), 13 (Climate Action) and 11 (Sustainable Cities) represent over half of all aggregate flows in the blended finance market. However, annual blended finance flows to the climate finance SDGs remain far below the annual investment needs for power projects, climate change mitigation and climate change adaptation and resilience. For example, the annual investment gap for mitigation alone is [estimated](https://unctad.org/en/PublicationsLibrary/diaemisc2019d4_en.pdf "UNCTAD") at USD 380-680 billion.

 

## What you need to know 

 

The COP26 Blended Finance Platform aims to bring together public, philanthropic, and private investors to finance a sustainable future, by committing to a set of focused activities that aim to:

- Educate public and philanthropic organizations of the need to allocate catalytic capital to create market-equivalent investment opportunities for private investors 
- Build awareness of prospective public, private and, philanthropic organizations to fund climate/environment blended finance vehicles
- Identify and coordinate multiple blended finance vehicles to successfully raise concessional and commercial capital prior to, during and after COP26 in Glasgow in November 2021

As part of this initiative, the UK FCDO and Convergence have established a Working Group of development organizations (ministries, development agencies, philanthropic foundations, and donor climate funds) to develop and distribute relevant data and research on blended finance climate solutions and identify and support blended finance vehicles seeking institutional private capital, focused on power projects, climate change mitigation and climate change adaptation and resilience.

__Get familiar with blended finance transactions aligned with the COP26 agenda. __

__Please contact Safia Gulamani at safia.gulamani@convergence.finance if you have data and insights to contribute to the COP26 Blended Finance Platform.__

The COP26 Blended Finance Platform, supported by Convergence, is focused on identifying blended finance solutions that mobilize climate finance and private investment to emerging markets and developing countries.

The COP26 Blended Finance Platform

The COP26 Blended Finance Platform: Scaling Climate Finance Through Blended Finance

__Toronto, March 1, 2020 –__ Today, the United Nations (UN) Joint SDG Fund and Convergence announce USD 41 million in investments to catalyze strategic financing to accelerate the Sustainable Development Goals (SDGs). This announcement follows months of evaluation and technical assistance led by Convergence.

Over the past 10 months, as the principal independent evaluator and advisor to operationalize the [Call on SDG Financing Component 2: Catalyzing Strategic Investments](https://www.jointsdgfund.org/sdg-financing "UN Joint SDG Fund"), Convergence conducted a thorough evaluation of over 150 concept notes submitted by 100 UN Country Teams (UNCTs), from which 28 high-potential concepts were shortlisted for full proposal development alongside additional technical assistance from Convergence and the UN Joint SDG Fund. 

In February, Convergence recommended proposals from Fiji, Indonesia, Malawi, and Uruguay for funding, which were approved. “Convergence is a critical partner to the UN Joint SDG Fund as we strive to catalyze private investment and shift the conversation from funding to financing. Through the evaluation and technical process led by Convergence, Fiji, Indonesia, Malawi, and Uruguay are the first to mark a transformative movement to achieving the SDGs by 2030,” says Lisa Kurbiel, Head of the Joint SDG Fund. 

Each of these interventions makes strategic use of catalytic capital to mobilize commercial capital to invest in achieving the SDGs. The Fiji initiative will conserve and protect coastal reefs, marine life ecosystems while empowering local communities who rely on reefs for their survival. The Indonesia initiative will create a new generation of financial products to combat climate change by transitioning towards low impact energy and empowering the creation of women led small businesses. The intervention in Malawi will reduce poverty, hunger, and inequality, by creating jobs and supporting small businesses in the country’s severely undercapitalized agricultural sector. The Uruguay initiative will combat climate change by helping transition the country's transportation and industry sectors to green energy while reducing poverty and providing affordable access to innovative clean technologies. These four interventions are anticipated to mobilize an estimated USD 4.7 billion in additional finance from private, public, and philanthropic investors. 

“We are thrilled to see these proposals move forward. A key strength of these proposals is the deep understanding of the local country context and the strong alignment to national priorities presented by the UNCTs,” says Joan Larrea, CEO of Convergence.

The UN Joint SDG Fund plans to further support a pipeline of 12 additional promising proposals evaluated by Convergence. This pipeline represents diverse country typographies and impact areas, including four small island developing states, five least developed countries, and one fragile state. According to Adhiti Gupta, Manager, Market Acceleration & Design Funding at Convergence, and the lead for this work, the four selected proposals and pipeline of 12 transactions broadly reflect the regional distribution of blended finance deals in emerging markets, observed on Convergence’s Historical Deals Database. 

The partnership with the UN Joint SDG Fund in catalyzing SDG financing forms part of Convergence’s broader market acceleration strategy. Convergence runs an in-house Design Funding Program, open to all practitioners, that provides feasibility study and proof of concept stage grant funding to develop and launch catalytic blended finance vehicles that aim to attract private capital to sustainable development at scale. In the coming months, Convergence looks forward to sharing more insights from its work with the UN Joint SDG Fund to catalyze additional private investment in the SDGs.

 

### About Convergence

Convergence is the global network for blended finance. In addition to its [Design Funding Program](https://www.convergence.finance/design-funding "Convergence | Design Funding Program") and market acceleration activity, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. Organizations interested in partnering with Convergence to help accelerate the market for blended finance, and fund the design of blended finance vehicles, are encouraged to contact Convergence at design.funding@convergence.finance.
To learn more about Convergence, visit [www.convergence.finance](http://www.convergence.finance/ "Convergence | Home"). To more about the Joint SDG Fund Portfolio, visit [www.jointsdgfund.org](https://www.jointsdgfund.org "UN Joint SDG Fund").

 

### Media Contact

Please direct your inquiries to __Namrata Narayan, Head of Communications at Convergence__: namrata.narayan@convergence.finance.

Today, the UN Joint SDG Fund and Convergence announce USD 41 million in investments to catalyze strategic financing to accelerate the SDGs. This announcement follows months of evaluation and technical assistance led by Convergence.

Convergence Announces 41 million in SDG Investments from UN

Convergence Partnership with UN Joint SDG Fund Leads to USD 41 million in SDG Investments to Catalyze Strategic Financing

[https://prod-convergence-public.s3.amazonaws.com/webinars/Chris+No+Bloopers.mp4
](https://prod-convergence-public.s3.amazonaws.com/webinars/Chris+No+Bloopers.mp4 "Convergence | How Does Blended Finance Make a Transaction Less Risky?")

 

Our Managing Director – Europe, Chris Clubb, explains how blended finance uses development-funded capital to create transactions with attractive risk-return profiles. 

Chris works to build our network across Europe.

Interested in blended finance? Join the conversation. #AskConvergence

 

__Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). __

How blended finance uses development-funded capital to create transactions with attractive risk-return profiles. 

How does blended finance make a transaction less risky? 

__Toronto, February 3, 2021 –__ Convergence has awarded a feasibility study grant to the Basel Agency for Sustainable Energy (BASE), in partnership with Oxfam in the Pacific, for the development of a remittance-based financing vehicle that aims to advance climate action and sustainable infrastructure development in the Pacific Islands. This grant funding has been awarded through Convergence’s [Indo-Pacific Design Funding Window](https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window "Convergence | Indo-Pacific Design Funding Window"), funded by the Australian Government. 

“As the world faces a severe climate crisis, we need to accelerate solutions that will equip countries most exposed to its shocks with the right tools and infrastructure. This feasibility study is set out to do just that, building on BASE’s previously implemented remittance-based financing mechanisms in Haiti and Bolivia, which benefited more than 400,000 people in those countries,” states Robert van Zwieten, Managing Director for the Asia-Pacific region at Convergence.

A sizeable portion of the population in the Pacific Islands live and work along its coastlines, exposed to climate events such as land erosion, flooding, and cyclones. Frequent natural disasters in these under-resourced small island states result in damages worth millions of dollars. Much of the physical damage and associated social and economic devastation can be avoided by investing in sustainable and resilient infrastructure. While remittances are an important source of income for people in the Pacific Islands, the potential for remittances to enhance climate resilience has not yet been realized in the region.

BASE is a Swiss not-for-profit foundation that designs, develops and implements innovative financing mechanisms and business models to unlock investment in climate change solutions. Convergence’s feasibility grant will enable BASE, in partnership with Oxfam in the Pacific, to explore the feasibility of a remittance-based financing mechanism for micro-infrastructure solutions such as roof strappings, solar panels and batteries, and solar heaters and water tanks, for enhanced household resiliency. This mechanism is expected to mobilize impact investors, local financial institutions, migrant workers in Australia and New Zealand and remittance recipients in the Pacific Islands, many of whom will be women. After an initial pilot, the mechanism is expected to be self-sustaining, envisaged to mobilize USD 35 million into local economies, and impact 9,000 households. 

“The aim of our program is to design a locally relevant and self-sustaining finance vehicle that enables migrant workers from Pacific Island Countries who live and work abroad to channel part of their remittance payments towards sustainable and climate resilient infrastructure investments for their families and communities at home,” says Jasmine Neve, Deputy Director at BASE.

The feasibility of this mechanism will be explored initially in Samoa, Tonga, Fiji, Vanuatu and Kiribati. Initial work will include detailed research on targeted countries, stakeholder consultations to assess barriers, in-depth gender analysis to understand the impact potential to advance gender equality in the region, and a vehicle structure customized to the identified countries.

 

__About Convergence’s Design Funding Program__

Convergence’s Design Funding Program offers a unique market acceleration opportunity for practitioners to secure feasibility study and proof of concept stage design funding to develop and launch catalytic blended finance vehicles that aim to attract private capital to sustainable development at scale.. The Indo-Pacific Design Funding Window, funded by the Australian Government, provides grant funding for the design and launch of catalytic blended finance solutions focused on sustainable & resilient infrastructure and/or gender equality in certain countries in the Indo-Pacific region. Convergence is accepting applications for its current cycle until February 18, 2021. Find out more here.

__About Convergence__

Convergence is the global network for blended finance. On top of market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. To learn more, visit www.convergence.finance.

 

__Media Contact__

Please direct your inquiries to Namrata Narayan, Head of Communications, at 
namrata.narayan@convergence.finance

Convergence has awarded a feasibility study grant to the Basel Agency for Sustainable Energy (BASE) for the development of a remittance-based financing vehicle to advance climate action and sustainable infrastructure development in the Pacific Islands.

Convergence Awards Grant for Remittance-based Financing

Convergence Awards Design Grant for a Remittance-based Financing Vehicle to Improve Household Infrastructure and Resiliency for Pacific Island Communities

[The African Trade Insurance Agency](https://www.ati-aca.org/ "Convergence | ATI Member Spotlight") (ATI) is a pan-African institution founded and owned by African countries that works for governments, investors, lenders and companies doing business in the region. ATI provides political risk and commercial trade and credit insurance covering risks such as expropriation, non-honouring of sovereign and sub-sovereign obligations, currency inconvertibility and embargoes. 

Unlike traditional private insurers, ATI remains a development finance institution that uses insurance products to increase foreign and domestic capital flows into development in Africa. ATI is the only such insurance company in the region, rated A by Standard & Poor’s (S&P) and A3 by Moody’s, just below the African Development Bank, and higher than almost all African governments. Most importantly, ATI has Preferred Creditor Status (i.e., given priority for repayment).

Given ATI’s aim to increase foreign investment into Africa, and its unique position to influence the flow of trade and capital on the continent, Convergence connected with Deepak Dave, ATI’s Chief Risk Officer, who joined the management team earlier in 2020, to better understand the company’s approach to strengthening investor appetite and increasing investments that offer both financial and social returns in the region. 

 

## Through its various insurance products, ATI plays a critical role to encourage business in Africa, and the mobilization of private capital towards sustainable development in the region. Can you tell us more about this coverage selection and what sets ATI apart from others? 

 

ATI provides assurance to private capital providers funding projects or transactions, that their capital will be protected against perceived esoteric risks associated with doing business in Africa. ATI’s participation does not substitute concessional or donor capital, rather acts as an additional means of attracting private capital into blended transactions. For instance, if you look at our financial capacity, 70-80% of it is devoted to sovereign finance, which includes guarantees to companies that supply African governments and government-backed institutions, against the real and perceived risks of doing business with African institutions, and, insuring private capital placed in government debt issuance, state owned entities, government bonds, capital market bonds, or preferred share issuances, through credit enhancement. 

In terms of what sets us apart, it is a combination of ATI being one of the highest rated financial institutions in Africa and our expertise of local markets, preferred creditor status, regional governments and government relationships. This is also what encourages private global reinsurers to do business through us, because if things turn bad, they are better off than if they were participating as a private financier. That same brew of positives comes into play when a commercial bank operates in the capital market and works with ATI.

And, because the majority of our shareholders are African sovereigns, ATI operates under the principle that it will only enhance the participation of private capital in transactions that meet both a financial and social need. 

 

## How does ATI help its clients navigate political exposure? 

 

Take, for instance, a Canadian company seeking to sell its 30 MRI scanners to a private Ghanaian hospital that is part of an Indian hospital chain. In this scenario, nobody knows anybody, but ATI is more likely than not to have done business with the Indian company, the Ghanaian hospital and government, and the Canadian company. In this scenario, like the many we face, ATI is often the sole participant that has a strong familiarity of all players involved, and the economic, political and social conditions that will influence decision-making and the success of an investment in Africa.

Institutions like ATI exist to bring institutional memory, institutional skills and institutional weight to transactions to keep deals honest. The more deals we do, the more capital comes into the region. 

 

## With regards to the Africa Energy Guarantee Facility (AEGF)–set up by the European Investment Bank (EIB) and Munich Re to promote private investment into the energy sector, where ATI provided investment insurance. Could you tell us more about ATI’s role? 

 

For some context, around 2014, EIB was driven to support the export of European expertise in renewable energy to Africa by financing European firms aiming to build out renewable energy-related infrastructure, renewable energy power supply, and/or related technology or services across the continent. The inherent concern was that the European SMEs were extending themselves into the African region and would face risk of non-repayment from African sovereigns. Given EIB did not have preferred creditor status with African governments, it decided to support European businesses in Africa with public money. 

ATI served as the front for capital coming from abroad to achieve a dual aim – mobilize private capital and increase renewable energy across the continent. ATI managed the private and public capital as the local bank financing renewable energy projects; locally accessible to insurance banks, asset managers, and other African entities. Effectively, our participation guaranteed foreign investors and capital providers investing in Africa protection against expropriation, nationalization, and government action that may harm the viability of a transaction post-facto, hence the term guarantee. 

 

## How has the COVID-19 pandemic further compounded the region's risk factors and what counter-cyclical role has ATI played?

 

COVID-19 has hurt the revenues of many governments. Unlike developed countries, where much of the revenue comes from taxes and corporate profits, a higher proportion of revenue for African countries is generated through import duties, export fees, and corporate profits from sovereign owned transportation businesses (e.g., airlines and railways). COVID-19 put a halt on the transport of passengers and goods, and stilted the provision of services, such as tourism. Consequentially, governments have had to cut budgets on social expenditure, weakening the budgets allocated to education and healthcare, which in any case are chronically underfunded sectors in much of Africa. Lastly, COVID-19 has decimated remittances from the diaspora and international tourism receipts. This capital evaporation has happened all at once, restricting foreign exchange. 

By our very definition, ATI does not behave counter-cyclically. We simply do not see the cycle; we operate right through it. When time came for us to provide immediate support, ATI leveraged its reputation and ratings to maintain the flow of capital to continue financing the development of hospitals and mobilization of Personal Protective Equipment (PPE). Our rating enabled us to put our name behind the importation of goods we know will be paid back over a different tenor than tolerable by private short-term capital.

 

## Has COVID-19 reduced foreign investor appetite towards Africa? 

 

The people who know Africa well have never wanted to stop investing in Africa, or feared investing in the region. The people who do not know Africa well often want their hand held as they are led through the thicket to success. That is what institutions like ATI have achieved some scale doing well. It is a key reason why ATI joined Convergence after I came on board as Chief Risk Officer. We wanted to ensure the institutions on Convergence’s investor platform interested in doing business in Africa, who are less familiar with the landscape, equally unfamiliar with the development banks as they are with the country in question, had exposure to ATI and access to us, primarily to help reduce their risk of investing while increasing their investment success.

 

## In your view, are insurance products adequately sized and priced, and how do you see their demand evolving to match the evolving macroeconomic environment in the region? 

 

The amount of capital that is willing to sit behind insurance in this region is somewhat finite, because we are insuring the first losses institutions take on a transaction. We would love there to be greater capitalization. With that said, given our accreditor status, rating, and skill in maintaining relationships with governments and corporates in the region, we leverage our capital several times over. So, for every dollar that is invested in ATI, we provide $15 or $18 of coverage. In comparison, a bank offers $8 for every dollar invested. This amount of leverage comes at a price. We do not have to provide concessionally priced insurance to attract transactions. ATI has never felt pressured to drop its prices, and I do not believe we would feel pressure even with the presence of comparable institutions in the region. 

 

## The landmark African Continental Free Trade Area (ACFTA) will be a game-changer for intra-African trade and is now the largest free trade area in the world, with a combined market size of USD 2.5 trillion. What role will an organization like ATI play in driving greater volumes of trade in the region and where do you see Blended Finance being utilized to that end?

 

Firstly, if the free trade area gets to a point where it is not just a set of visions on paper, but a driving force that leads African countries to change the ways in which capital and goods flow across borders, which has not yet happened because ACFTA is very new, then it is going to be a very large economic bloc, which will increase business and the flow of goods and capital, introducing a larger number of companies for ATI to insure. 

Secondly, in my view, capital coming into Africa up till now has not been primarily driven by the Africa story, but by foreign countries. This may change with ACFTA, if operationalized, as investors will be able to entertain investing in multiple countries versus pursuing projects on a country-by-country basis. 

So, we are optimistic. When African countries operationalize the treaty, we will play on that bigger pitch. 

 

## What are some of the challenges facing ATI? And where do you see Convergence working to facilitate greater capital flows into the region?

 

ATI works with the largest banks across Europe and Asia, and so is very well known to institutions in these regions. Where we have had difficulty is breaking into a market like North America, as more than most businesses in this region have shown less interest in Africa. The ones that are keen (e.g., big mining and energy firms), know us well. 

From North America, there is not enough direct financial investment and trade investment into the African market. When it does happen, it happens through Europe. For example, we often have a U.S. pension fund that owns Zambian government bonds through its asset manager in Europe who abets credit enhancement from ATI on those bonds. So, the pension fund in the U.S. has no idea who ATI is or what we are doing to make the deal investible in the region. A focus for us right now is to increase foreign direct investment from North America into Africa. We joined Convergence last year because we believe Convergence can provide us the exposure we need to create strong partnerships with investors in North America and bridge the gap between the needs on the ground and foreign investor interest and activity.

 

__*Are you interested in becoming a member of Convergence's global network for blended finance? [Sign up today](https://www.convergence.finance/sign-up "Convergence | Sign-up").*__

Convergence recently connected with Deepak Dave, ATI’s Chief Risk Officer, to better understand the company’s approach to strengthening investor appetite and increasing investments that offer both financial and social returns in the region. 

Member Spotlight with Deepak Dave, Chief Risk Officer at ATI

Member Spotlight with Deepak Dave, Chief Risk Officer at African Trade Insurance

[https://prod-convergence-public.s3.amazonaws.com/webinars/Blended+Finance+for+WIM+and+FSM_Launch+Recording.mp4](https://prod-convergence-public.s3.amazonaws.com/webinars/Blended+Finance+for+WIM+and+FSM_Launch+Recording.mp4)

 

Three months ago, Convergence, with the support from the Swedish International Development Cooperation Agency (Sida), set up a Working Group, convening over 50 organizations from the WASH sector to explore the use of blended finance in two important segments of water service delivery and sanitation: 

1. Repair and maintenance of water infrastructure in less densely populated areas
2. Fecal sludge management

On January 14th, Convergence and Sida co-hosted the launch of the Outcome Document [__*Blended Finance for Water Infrastructure Maintenance and Fecal Sludge Management*__](https://www.convergence.finance/resource/21SjGAEMusduo1T03h91GQ/view "Blended Finance for Water Infrastructure Maintenance and Fecal Sludge Management"), produced by the Working Group, to introduce the recommendations made for using blended finance to mobilize additional funding and financing for rural water maintenance and fecal sludge management.

This online event featured perspectives from the Working Group Coordinators and guest panelists, Meera Mehta from Center for Water and Sanitation in India, Stephen Sena from USAID WASH-Fin, Shabana Abbas from Aqua for All, Regina Rossmann from Convergence, Louis Boorstin from Osprey Foundation, Maria E. G. Berto from Inter-American Development Bank, Mikael Dupuis from UDUMA, and Rob Mills from Social Finance. 

 

![Agenda for launch recording PICTURE](//images.ctfassets.net/4cgqlwde6qy0/79nCtABwNLpxG9w6bGJ7xn/1e4469f6569f362cdc53aea9d3292e21/Agenda_for_launch_recording_PICTURE.png)

 

Once again, we would like to thank the Working Group Coordinators, Sean Furey from Rural Water Supply Network, Beryl Shanyisa from Incofin Investment Management, Valentin Post from WASTE and Sridhar Sampath from WaterEquity, for their participation during the launch event. 

The full list of Working Group participants is available in Annex I (pages 36 & 37) of this report. 

__To learn more, download the [Outcome Document](https://www.convergence.finance/resource/ad358d94-4a04-49cb-8200-e4a605fc6472/view "Blended Finance for Water Infrastructure Maintenance and Fecal Sludge Management"). Convergence has also [summarized](https://www.convergence.finance/news-and-events/news/7HWk9e8elrIoPOfDiDgyPv/view "Convergence | Blended Finance for FSM") the key findings from this report. __

Recording of Launch Event of Outcome Document of the Working Group on Blended Finance for Water Infrastructure Maintenance and Fecal Sludge Management on Jan 14 2021