Question

What is the primary benefit of using a 'blended finance' approach?

• A. It uses public funds to attract and leverage private capital for development projects.
• B. It primarily relies on government grants and subsidies.
• C. It focuses exclusively on domestic private investment.
• D. It aims to replace private sector involvement entirely with public funding.

Answer 1

Answer:

A. It uses public funds to attract and leverage private capital for development projects.

• The core concept of blended finance is using strategic public or philanthropic funds to reduce risk for private investors, thereby attracting a larger pool of private capital.