The Sevilla Financing for Development (FfD) Conference reaffirmed the urgent need to close Africa’s $200B+ annual financing gap for the SDGs. A key tool highlighted is blended finance, combining public, philanthropic, and private capital. This policy brief outlines how blended finance can be structured to reach underserved African communities suffering from poverty, underdevelopment, and climate vulnerability.
Problem Statement
Despite various global finance commitments, African communities continue to face:
• Limited access to affordable finance for basic services
• Extreme exposure to climate shocks (droughts, floods, food insecurity)
• Exclusion from formal financial systems
• Weak local government fiscal capacity
While Sevilla promotes blended finance, without deliberate inclusion, it risks favoring high-return, low-risk projects and leaving vulnerable groups behind.
What Sevilla Committed on Blended Finance
The Compromiso de Sevilla:
• Calls for expansion of blended finance to mobilize private investment aligned with SDGs
• Supports use of concessional finance, de-risking instruments, and guarantees
• Encourages aligning private sector incentives with public development outcomes

Risks & Gaps
Without equity safeguards, blended finance may:
• Prioritize “bankable” projects over those most needed
• Exacerbate debt risks for developing countries
• Bypass community knowledge, women/youth initiatives, and local enterprises

Recommendations to Make Blended Finance Work for Underserved Communities

1. Local Anchoring & Co-Design
   • Involve local governments, CSOs, and cooperatives in project design
   • Embed community engagement protocols in all blended finance deals
2. Pro-Poor Targeting
   • Earmark funds for mini-grids, climate-smart agriculture, health, and early warning systems
   • Use filters for poverty, gender, and youth impact
3. Flexible & Affordable Capital
   • Promote use of first-loss guarantees, long-tenure concessional loans
   • Support SMEs, farmer groups, and fintech innovators
4. Transparency & Accountability
   • Publish project terms, beneficiaries, and risk allocations
   • Establish community-led monitoring and scorecards
5. Climate-Resilient Investments
   • Mandate climate risk assessments and resilience planning
   • Prioritize nature-based solutions and adaptive infrastructure
   Connected Advocacy Action Plan from Sevilla
6. Advocate for the Blended Finance Equity Charter,
7. Create Community Access Guidelines,
8. Develop Public-Community-Private Partnerships (PCPP) Social Protection Round Table, to bridge the gap on blended financing with the underserved communities, and launch of Local Demonstration Projects on Clean Energy Access, scaling up Food Systems Opportunities, and empowering voices from the ground, using data technology, innovative solutions with co-benefits. Talking Points for Engagement
   • “Blended finance must bridge, not widen, inequality gaps in Africa.”
   • “We need not just billions to trillions, but capital with conscience.”
   • “Without pro-poor design, blended finance is climate-washing for capital.”
   • “Sevilla must move from pledges to pipelines that work for people and planet.” Conclusion
   The Sevilla commitments can drive real impact, but only if implementation centers justice, inclusion, and local access. Africa needs blended finance that supports not just growth, but resilience, equity, and dignity.