By: British International Investment

In this article, BII’s CEO, Nick O’Donohoe, writes about the power of flexible capital in tackling the biggest development challenges

Blended finance solutions are useful for taking a flexible approach to risk, but they are complex, difficult to structure, standardise and scale. Ambitious mobilisation objectives, while necessary given the size of the financing gap, often push investors, including DFIs, towards taking less risk. However, this gap in risk capital needs to be filled if we are going to address the most intractable development challenges. CDC [BII] can play a role, particularly through our Catalyst programme, because we benefit from being an investment company with no leverage, enabling us to have a greater tolerance for volatility and risk.
But we need more partners, including more impact investors and more foundations, willing to join us and commit capital that is more risk-tolerant and flexible if we are going to make a dent in the SDGs.