Blended finance: unlocking Africa’s transformative projects

Insight By Pôle Structuration financière

Why combining concessional and commercial resources has become the key to bankability.

The starting point

Africa’s transformative projects rarely fail for lack of ambition. They fail for lack of financial structuring: prohibitive cost of capital, poorly allocated risks, missing guarantees.

What blended finance brings

Combining grants, concessional debt and commercial capital makes it possible to:

  • lower the weighted average cost of capital (WACC);
  • allocate each risk to the actor best placed to bear it;
  • attract private investors to previously inaccessible assets.

Our conviction

Financial engineering does not replace a project’s intrinsic quality: it reveals it. That is the essence of our End-to-End methodology, which embeds bankability from origination.

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