Blended Finance in the Least Developed Countries
Through a rich evidence base, data analysis, and detailed case studies, this report explores how to implement and adapt blended finance approaches to least developed countries (LDCs) to maximize their effectiveness in crowding in private capital while minimizing risks. It also summarizes UNCDF’s proposed action agenda to improve the effectiveness and efficiency of blended finance in LDCs, address risks flagged in the report, fill data and information gaps and consider some future avenues of research and analysis.
The report is meant to stimulate the debate on blended finance in LDCs by providing a venue for think tanks, development finance institution, national development banks, investors, and bilateral and multilateral development organizations to discuss specific questions emerging from their activities.
Some of the questions this report seeks to address include:
- Can blended finance be part of the solution in getting more finance to where it is needed most?
- What challenges and risks should be considered and mitigated?
- How can blended finance be effectively and efficiently deployed, so that projects support national ownership and generate additionality?
- Can blended operations in LDCs crowd in investors, especially domestic investors, while also creating demonstration effects that support commercial replication?
