PGP Research Team: Blended Finance for Climate-Resilient Development in Morocco: Evidence from the AfricaGrow Fund of Funds
This project investigates how blended finance mobilizes private investment to support green SMEs and SMEs operating in climate-vulnerable sectors in Ghana. The study explores whether and under what conditions blended finance instruments can overcome financing barriers in high-risk environments and contribute to climate-resilient development. It focuses on how different blended finance structures shape investment decisions, risk-sharing mechanisms, and capital mobilisation. Particular attention is given to variations in fund design, financial instruments, sectoral focus, and risk profiles, and how these differences influence SME financing outcomes. The project is embedded in broader debates on private sector engagement in sustainable development and climate finance, and is theoretically grounded in blended finance and resource mobilization perspectives, which highlight how concessional public resources can catalyse private investment by improving risk-return conditions and addressing market failures.
Projektleitung:
Bao-We-Wal Bambe
Projektteam:
- Fatima, Ayeza (Public Policy & Social Change)
- Gatzweiler, Aurelius (Political Science)
- Kambouris, Antonia (Climate Change & Diversity – Sustainable Territorial Development)
- Kaufhold, Johanna (Economic Policy)
- Kristensen, Matias (Development Studies)
- Lucks, Johanna (International Development & Management)
Zeitrahmen:
2026 - 2027
/
Laufend
Projektbeschreibung
Country and Research Sites
Field research will be conducted in Ghana, a country characterized by significant SME financing constraints, growing blended finance activity, and high exposure to climate-related risks. The research will primarily take place in urban areas, where the selected investment funds, development finance institutions (DFIs), and beneficiary SMEs are concentrated. The study will compare selected blended finance funds operating in climate-relevant sectors, including agriculture, renewable energy, and financial services, which differ in their financial instruments, risk-sharing mechanisms, and investment strategies. The final case selection will be made in consultation with local partners.
Research Partners
The field research will be conducted in collaboration with local partners in Ghana, who will support stakeholder access, research coordination, and contextual understanding of the blended finance ecosystem. A junior researcher will contribute to the research team by supporting data collection and field activities. In parallel, interviews with fund managers, DFIs, and other relevant stakeholders will provide complementary insights into investment decisions, risk perceptions, and the role of blended finance in addressing SME financing challenges.
Methodology
The study adopts a comparative case study and mixed-method approach. The research team will combine semi-structured expert interviews with fund managers, DFIs, and other key stakeholders with quantitative analysis of fund- and portfolio-level data. The analysis will examine investment volumes, financial instruments, sectoral allocation, and risk profiles to assess how different blended finance structures influence private capital mobilisation and SME financing outcomes. Where feasible, firm-level evidence from supported SMEs will complement the analysis by providing insights into financing constraints and investment performance.