IMD's report highlights the urgent need for innovative finance, including blended finance, in fragile settings, as traditional grants can no longer address today’s challenges. It calls for new capital sources and a shift toward long-term financing options like debt, equity, and insurance to meet growing humanitarian needs. The report also maps the humanitarian impact finance continuum, outlining funding sources for various actors at different stages to encourage innovation and effective implementation.
The report includes a decision tree to guide investors in selecting financial instruments by considering factors such as revenue potential, risk, repayment capacity, and impact with a goal to scale resources, foster sustainable solutions, and drive lasting change in humanitarian finance.
