Technical assistance (TA) in blended finance transactions can be essential to capacity-building and de-risking potential investments in new or uncertain markets. A versatile form of aid, TA can be used for advisory, assistance, or training programs. Generally, the purpose of TA is to build the operational capacity of investees or those along the value chain, to reduce high transaction costs, or to create a more enabling environment for investors. The goal of TA is to increase the development impacts of private financing to forward the Sustainable Development Goals (SDGs).
This brief analyzes how TA has been deployed in blended finance transactions to date, presenting insights from interviews conducted with industry stakeholders. Convergence’s HDD has recorded 270 blended transactions with a TA component (26% of total transactions), with USD 1.7 billion spent on TA in total.