Blended finance in the poorest countries: the need for a better approach
The need to mobilise private finance is at the heart of international discussions on how to finance the Sustainable Development Goals (SDGs) and move the needle from ‘billions’ of dollars in development aid to ‘trillions’ of dollars in investment (World Bank, 2015). With an estimated SDG financing gap of $2.5 trillion a year in developing countries alone (UNCTAD, 2014), the international development community is placing an increasing emphasis on blended finance. The report examines in detail the investment portfolios of the largest and most important blended-finance actors, which account for more than three quarters of the total private finance mobilised in LICs, according to the OECD. It analyses the most recent four-year period for which comprehensive mobilisation data are available.