The World Economic Forum and the Organisation for Economic Co-Operation and Development (OECD), through the work of the Forum’s ReDesigning Development Finance Initiative (RDFI), will formally announce three Blended Finance initiatives aimed at unlocking hundreds of billions of dollars of investment to help meet the United Nations Sustainable Development Goals (SDGs).
Blended Finance seeks to attract private-sector investment and finance alongside development finance and philanthropic funds to manage the risks and enhance returns. Blended Finance offers a win-win-win option for all parties: wins for development finance and philanthropic funders, as they make their limited dollars go further; wins for private investors, as they generate attractive returns, and most importantly, wins for populations in developing countries, as more funds are channelled to their communities in ways that enables sustainable growth in the world’s poorest countries.
Initiatives to be announced include:
A Sustainable Development Investment Partnership (SDIP), a global partnership between governments and financial institutions that provides practical solutions to unlock private capital for financing sustainable infrastructure and other development needs. Download the full list of partners here.
Convergence, a virtual platform for deal-making, sharing information and capacity building that facilitates and increases Blended Finance capital flows to developing countries.
The RDFI Toolkit, comprises a set of materials including knowledge products and a virtual community, the Blended Finance Network, to support the scaling up of Blended Finance as a mainstream, systematic practice.
Blended Finance is the strategic use of development finance and philanthropic funds to mobilize private capital flows to developing markets. Funds deployed through Blended Finance demonstrate the effective use of private capital to support development outcomes. A recent survey conducted on behalf of the World Economic Forum identified 74 pooled funds and facilities representing $25.4 billion in Blended Finance assets, with the funds impacting over 177 million lives, demonstrating the tremendous potential of Blended Finance to close the funding gap required to finance the ambitious SDG agenda and deliver development outcomes.
The first Blended Finance Initiatives will be formally announced at the United Nations Financing for Development Conference in Addis Ababa on 15 July. Senior ministers and international financial institutions will discuss how Blended Finance can help achieve the SDGs.