This report by IFC puts forward a set of justifications for the systematic adoption of blended finance approaches by development finance institutions (DFIs) to motivate development outcomes, and outlines a series of recommendations for more efficient deployment of blended finance structures. For example, the rationale behind blended finance use should be more clearly defined at the outset of potential interventions.
The paper also suggests that while the COVID-19 pandemic has presented innumerable new challenges to blended finance implementation, the resultant circumstances in emerging markets raises the urgency for DFIs to expedite efforts to streamline their blended finance operations.
