ABSTRACT
Private finance has become a cornerstone of international development cooperation. Highlighted in the Addis Ababa Action Agenda and endorsed by the 2030 Agenda for Sustainable Development, the mobilization of private capital from individuals, organizations and non-public financial investors is deemed critical for addressing the significant investment gap to meet the Sustainable Development Goals. Blended finance mechanisms are increasingly employed by public entities to improve the risk-reward profile of investments and ‘unlock’ private capital for sustainable development. However, challenges and concerns regarding accountability, transparency and power dynamics persist, requiring sound governance frameworks to prevent undue or harmful influence of private finance over development priorities.
