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This report by I&P Ecosystems, commissioned by the CC Facility Learning Hub, analyzes the role of blended finance in supporting impact funds under $100 million that operate at the intersection of gender and climate in Sub-Saharan Africa. Based on a sample of 46 nexus funds, the study finds that blended finance is systemic to the sector, with 86% of these funds utilizing at least one blended finance archetype to launch and operate. While essential for de-risking and scaling, the report identifies significant inequities in access, noting that larger debt funds capture the majority of concessional capital, while early-stage SME funds and first-time managers are often excluded from meaningful support beyond small design grants and technical assistance.

This report outlines strategies for scaling investment in Nature-based Solutions (NbS) through blended finance, highlighting the critical role of the public sector in providing technical assistance and concessional capital. It identifies guarantees as highly catalytic tools for de-risking private investment and emphasizes the need for ecosystem building and the creation of new revenue streams via beneficiary engagement and regulated markets (e.g., carbon and blue markets) to prove commercial viability.