Blended finance is a risk mitigation tool for investments that find it difficult to attract commercial funding.
Blended finance refers to the combination of concessional and commercial funding in private sector-led projects. Its rationale is to support projects with potentially high social benefits, but that would not attract funding on strictly commercial terms due to their high risks.
This note synthesizes evaluation findings from two sources:
Pictured: Men in Kenya guard their livestock. IEG’s evaluation has found that blended finance has improved dairy farmers’ capacity to improve herd management and quality. Photo credit: Dragos Lucian Birtoiu/ shutterstock