A report from the UNCDF sets out an action agenda for pursuing blended finance strategies effectively in least developed countries. It calls for:
providers of concessional finance to take more risks to support blended transactions, when appropriate, throughout their lifecycle;
least developed countries to be fully included in global discussions about blended finance;
blended strategies to support sustainable outcomes, including by actively seeking out suitable domestic investors and supporting transactions in local currencies;
improvements in impact measurement and transparency of blended deals; and
increased knowledge-sharing and evidence to improve blended finance practices.
“Only 7% of private finance mobilised for development goes to vulnerable countries, meaning the bulk of these investments bypass the people who need it most. We can do better” said UNDP Administrator Achim Steiner. “To meet the Sustainable Development Goals, we must harness a broader range of financing options – including blended, private and public finance when appropriate – and move beyond established pathways to mobilise finance for least developed countries.”