Blended Finance Effectiveness

Blended finance mechanisms have expanded significantly, yet their impact on SME access to credit remains unclear due to weak measurement of additionality and limited transmission of benefits to end borrowers. Risk-sharing instruments often reduce cost of capital for banks without changing lending behavior or pricing for SMEs.
This session evaluates the structural limitations of current blended finance models, focusing on how to measure true additionality, ensure pass-through to SMEs, and redesign instruments to create scalable, standardized asset classes capable of attracting institutional capital.