Summary of publication
The primary purpose of the Review of DFAT Australia’s Blended Finance Investments (2022) (the Review) is to answer the following question: “To what extent has DFAT’s blended finance portfolio been effective at drawing in more private capital and maximising the development impact of private capital in the Indo-Pacific?” To answer this question, a portfolio-level measurement framework was developed.
The Review finds that DFAT’s blended finance portfolio has been effective at crowding in private capital into investments that support development objectives. The Review finds that private finance mobilisation should not be the sole focus when reviewing blended finance programs. Additionality and the sustainability of private capital flows are also crucial, along with the technical assistance for enterprises in the Indo-Pacific. The Review recommends harmonising different definitions and approaches to measuring employment and economic impact in the portfolio to compare effectiveness across programs.