The Sustainable Development Goals (SDGs) target a range of development challenges, from combating climate change to ending poverty and hunger. To achieve the SDGs in developing countries, a significant scale-up of investment is required. Blended finance is the use of catalytic capital from public and philanthropic sources to mobilize additional private sector investment in developing countries to realize the SDGs. Blended finance is one important approach to financing the SDGs, with the United Nations (UN) member countries reaching consensus on its importance at the Third International Conference on Financing for Development in 2015. Since then, blended finance has become a familiar concept for a diverse set of organizations across the public, private, and philanthropic sectors.

This report uses Convergence data and insights to provide an updated analysis of the blended finance market, including intended impact, blending approaches, focus sectors, and target regions. The report also highlights the most active organizations in the space, provides an overview of emerging trends and themes in blended finance, and reflects on progress towards ‘better blending’. Established out of the Addis Ababa Action Agenda, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries for sustainable development.

The State of Blended Finance 2019

Authored by Convergence