Beyond the Myths: From Perceptions to Practice in Scaling Blended Finance to EMDEs

Year Published

2025

Contributing Organizations

Cambridge Institute for Sustainability Leadership (CISL)

Type of Resource

Guidance

Languages

English

Relevant Topics

Core Topic

Blended Finance

Target Audience

MDBs/DFIs

Banks

Governments & Policymakers

Private Equity

Asset Managers

Relevant Geography

Africa

Asia & the Pacific

Central Asia

Middle East and North Africa

Latin America and the Caribbean

Resource Description

This practitioner guide to blended finance explores how to scale private capital mobilization in EMDEs by addressing risk perceptions, structural barriers, and market enablers.

Why This Matters

Private capital flows to EMDEs remain low despite the need. This resource addresses perception gaps and outlines practical steps to unlock finance for climate and development.

Key Insights

Challenges perceptions of high risk in EMDEs, citing comparable default rates (3.5%) and strong recovery rates (72%)
Shows how guarantees, hedging, and modular structures can reduce currency, complexity, and liquidity risks
Describes how project aggregation and securitization help build investible pipelines and lower transaction costs
Notes improved availability of risk and ESG data, but highlights need for better coordination and standardized reporting
Recommends aligning stakeholder mandates and using templates to streamline investment and reduce friction

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