Blended Finance: An Instrument to Reach the Unbanked
Blended finance is emerging as a critical tool for mobilizing private capital in frontier markets. The challenge is not a lack of capital, but persistent barriers such as risk, weak financial systems, and limited bankable projects, that prevent it from flowing where it’s needed most.
By combining concessional and commercial funding, blended finance reduces risk and unlocks investment in underserved sectors like MSMEs, agriculture, and climate.
