Blended Finance

Blended finance employs the strategic use of development finance and philanthropic funds to mobilize private capital flows to emerge and frontier markets. It is a method of layering investments to de-risk certain SDG-related investment areas for the private sector. According to the definition provided in the Addis Ababa Action Agenda, blended finance combines concessional public finance with non-concessional finance from either public or private resources to incentivize additional finance for development.