Blended Finance Evaluation: Governance and Methodological Challenges

This paper tackles the complex challenge of evaluating blended finance operations, which combine public development funds with private capital. It highlights key governance and methodological issues that evaluators face, such as defining the unit of analysis, assessing causality and additionality, and accurately measuring mobilisation and development impact. The authors argue for a systems-based approach to evaluation that considers the interplay between public and private actors and the broader market effects. It provides practical recommendations for agencies on building robust evaluation frameworks to improve the effectiveness of blended finance.