Blended Finance in the Least Developed Countries 2020
Supporting a Resilient COVID-19 Recovery
The least developed countries (LDCs) are the furthest from achieving the Sustainable
Development Goals (SDGs). They are also likely to be hit the hardest by the COVID-19
crisis and badly need the additional private finance that blended finance can unlock.
Yet evidence shows that too little private finance is mobilised for investment in
LDCs. How can this be fixed?
The Blended Finance in the Least Developed Countries 2020 report is the third edition
and second joint UNCDF-OECD report. It builds on UNCDF research and transactional
experience, OECD data and analysis on private finance mobilized by official development
finance, and a series consultations with and contributions by blended finance experts,
LDC governments, UN missions, donors, civil society and research institutions. The
report provides an update on the deployment of blended finance in LDCs. It also analyses
its potential role in helping those countries recover from the COVID-19 crisis, and
provides an Action Agenda for unlocking capital for the achievement of the SDGs in
LDCs, as called for in the 2030 Agenda for Sustainable Development and the Addis Ababa
LDCs continue to receive the lowest, although increasing in volume, share of only 6% of private finance mobilised by official development finance interventions. Blended finance can play a key role to support LDCs in mobilising resources for the medium-to-long term recovery from the Covid-19 crisis.
Private finance mobilised in LDCs, compared to other country groupings
Between 2012 and 2018, approximately USD 13.4 billion was mobilised ind LDCs - a mere 6% of the total. This compare with over 84 billion (41%) in UMICS and 68 billion (33%) in LMICS.
An Action Agenda to harness the blended finance potential for LDCs
The Action Agenda aims to improve the practice of blended finance and help ensure that its application can support LDCs to mobilise resources to finance the SDGs.
Support domestic financial ecosystems and market development
Design blended finance solutions to reach the "last mile"
Improve impact management and measurement and promote transparency
Bring blended finance to scale through systemic and transformational approaches