Supporting the design of USAID’s blended finance strategy and identifying potential transactions
Creation of a 6-step framework to identify potential blended transactions, following an issue – instrument approach and testing the approach in 3 countries (India, Tanzania and Liberia) by identifying potential actionable transactions.
USAID has had a massive impact in the space of global health over the last 50+ years. Despite the enormous strides they have made, a lot more is needed to achieve the targets included under the health and well-being Sustainable Development Goals (SDGs) by 2030. Specifically, an additional annual investment of $134 billion is needed to meet the health SDGs in low- and middle-income countries (LMICs) in 2016. By 2030, this is projected to be $371 billion – a need that traditional grant funds alone cannot fulfill.
USAID looked towards blended finance as an important tool to address these funding gaps. KOIS was engaged by USAID to advise them in developing a roadmap to reach high potential opportunities and build specific solutions that align private capital with development needs in healthcare. As part of this engagement, KOIS developed a blended finance roadmap for USAID, laying out a structured approach for engaging in blended finance transactions. This roadmap provided them with a six-step guidance tool to help shortlist appropriate blended finance instruments for a specific health challenge.
Further, KOIS tested this approach in 3 different countries to identify potential actionable transactions in those geographies. The 3 countries chosen – India, Tanzania and Liberia – each had differing health contexts and financing ecosystems.