Convergence and la Red de Instituciones Financieras de Desarrollo (RFD) signed a memorandum of understanding (MOU) to advance the adoption of blended finance as a tool for sustainable development in Ecuador.
RFD is a non-profit, civil corporation created in 2000, which brings together 53 institutions including banks, cooperatives, and NGOs, oriented towards microfinance and solidarity finance in the country. Its main objective is the promotion of financial inclusion in Ecuador, as an effective mechanism to combat poverty and promote social and economic development.
Through the MoU, Convergence and RFD aim to advance blended finance awareness and deal flow in Ecuador as a tool for accelerating investments in climate, social, and economic development.
To achieve Ecuador’s climate and sustainable development objectives, collaboration between the public, private, and philanthropic sectors will be critical. Blended finance can be a useful tool in mobilizing private sector resources and bridging the financing gap for sustainable development projects in Ecuador.
This partnership between Convergence and RFD will include activities such as knowledge sharing and capacity building sessions between the two organizations. As the partnership progresses, the organizations also intend to engage with representatives from public and private entities in Ecuador, such as relevant Ministries, private banks, project developers, and asset managers, to promote blended finance solutions.