Navigating the Next Wave of Blended Finance for Financial Inclusion

Blended finance is at the heart of the discussion on how to attract private investors to close the estimated $2.5 trillion annual gap to finance the Sustainable Development Goals (SDGs) (UNCTAD 2014). In financial inclusion, the use of blended finance is not new and has attracted private investments from international and local sources. How will this most recent emphasis on using blended finance to mobilize private capital for development affect funding for financial inclusion? This Brief presents opportunities for the new wave of blended finance and points to areas that deserve further attention to optimize the use of different funding sources to advance responsible financial inclusion.