On June 3, Madrid hosted Blended Finance Africa, one of the leading international events dedicated to blended finance as a key tool for accelerating the achievement of the Sustainable Development Goals (SDGs), particularly in emerging markets and, notably, across the African continent. The event’s convening in Spain was supported by SpainNAB, together with ecosystem actors such as GSI (Global Social Impact Investments), Cofides, and the Cátedra de Impacto Social de UP Comillas, among others, reflecting the country’s growing role in advancing impact investing at a global level.
The event brought together investors, public institutions, multilateral organisations, foundations, and stakeholders from the impact investing ecosystem with a shared objective: to explore how to mobilise greater volumes of capital towards projects delivering measurable social and environmental impact, while reducing risk barriers through innovative financing structures.
A key tool for cooperation and development
Blended finance has become one of the most effective mechanisms in recent years for closing the financing gap, particularly in the context of development cooperation and the achievement of the SDGs. By strategically using public or philanthropic resources to mitigate risk, this approach helps attract private capital to projects that would otherwise struggle to secure sufficient funding.
As highlighted in SpainNAB’s work on catalytic capital, blended finance not only increases the volume of investment available but also enhances its effectiveness. In complex or high-risk environments, such as many African markets, these structures make it possible to align incentives, facilitate the entry of new investors, and scale solutions with tangible social and environmental impact.
In the African context, the relevance of these tools is particularly significant. The need to invest in infrastructure, energy transition, access to basic services, and financial inclusion requires mechanisms capable of mobilising capital at scale and in a sustained manner. In this regard, blended finance serves as a crucial bridge between international cooperation and private investment.
A multi-stakeholder dialogue to advance SDG financing
Mercedes Valcárcel, Chief Executive Officer of SpainNAB, moderated the roundtable titled “Mobilising Capital for SDGs: The Role of Blended Finance & Impact Investing.”
The panel brought together representatives from key institutions such as the Catalytic Finance Foundation, the Spanish Ministry of Economy, and MAPFRE Inversión, offering a diverse perspective on the challenges and opportunities associated with blended finance. Through an open discussion, the session explored how to move from pilot initiatives towards structures capable of attracting larger volumes of institutional capital, one of the sector’s major outstanding challenges.
The discussion highlighted the central role of catalytic capital as an enabling tool. Rather than replacing private investment, this type of funding acts as a lever to improve the balance between risk and return, facilitating the participation of new investors and expanding the reach of interventions.
The importance of strengthening public-private collaboration was also emphasised. Establishing appropriate regulatory frameworks, building trust, and aligning incentives are seen as essential conditions for ensuring that these structures operate effectively and sustainably over time.
Another key topic addressed was the need to further advance impact measurement and management. The credibility and growth of the sector depend largely on its ability to demonstrate tangible results, particularly in contexts where social and environmental needs are especially acute.
Spain’s role in advancing blended finance globally
The participation of Spanish actors in Blended Finance Africa highlights Spain’s growing commitment to the development finance and impact investing agenda. Initiatives such as this help strengthen the country’s position as a relevant node within the international ecosystem, while fostering knowledge exchange and the creation of strategic partnerships.
At a time when the financing gap to achieve the SDGs remains significant, blended finance stands out as an essential tool to channel resources in a more efficient and strategic way. The experience shared in forums like this contributes to the development of more robust, scalable, and results-oriented models.
