Blended Concessional Finance : Scaling Up Private Investment in Lower-Income Countries

Blending funds from private investors with concessional funds from donors and philanthropic sourceshas a strong potential to scale up investment in lower-income countries and thereby acceleratedevelopment. The use of blended concessional finance is...

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Bibliographic Details
Main Authors: Sierra-Escalante, Kruskaia, Karlin, Arthur, Lauridsen, Morten Lykke
Format: Brief
Language:English
Published: International Finance Corporation, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/505351547847027202/Blended-Concessional-Finance-Scaling-Up-Private-Investment-in-Lower-Income-Countries
http://hdl.handle.net/10986/31199
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Summary:Blending funds from private investors with concessional funds from donors and philanthropic sourceshas a strong potential to scale up investment in lower-income countries and thereby acceleratedevelopment. The use of blended concessional finance is already prevalent in lower-income countriesrepresenting over 70 percent of IFC’s commitments. Recent strategies from development financeinstitutions including the World Bank Group indicate that the relative share of lower-income countries in the global mix of blended concessional finance will increase further. Scaling up engagements in lower-income countries requires solutions tailored to local contexts, as well as the deployment of the whole spectrum of development finance tools, including advisory work, regulatory dialogue and reform, and a mix of blending instruments encompassing both pricing and risk mitigation features.