Press Release

Millennium Challenge Corporation Acting CEO: “Blended finance is the future of development”

For Immediate Release

November 14, 2017

LONDON, November 14, 2017 – Millennium Challenge Corporation (MCC) Acting CEO Jonathan Nash led conversations today in London on how the public and private sectors can work together to mobilize private capital funding for public good – often called blended finance.

Hosted by international law firm Berwin Leighton Paisner, the event brought more than 70 global development thought leaders and financiers together to generate greater understanding of private capital needs for infrastructure financing, and strategies for unlocking capital flows in emerging markets.

“Catalyzing private investment for development has been fundamental to MCC’s work since its founding 13 years ago,” MCC Acting CEO Nash said in opening the discussion. “Blended finance is the future of development, and by aligning business strategies with development priorities, we can strengthen outcomes to transform lives.”

With limited foreign assistance available, governments around the world are looking for opportunities to partner with the private sector to supply water, sanitation, transportation, power, public health and other much-needed services. Still, only a fraction of worldwide assets from banks, pension funds, insurers, foundations and companies are invested in sectors with development impact. And despite emerging and frontier markets contributing to 49 percent of global GDP, only a fraction of global capital flows to high-potential markets because of risk and market inefficiencies.

MCC looks for opportunities to leverage public spending across all of its programs to maximize its impact. Through partnership, MCC is uniquely positioned to mobilize the capital, expertise and efficiency of the private sector to deliver faster, better, affordable services and generate more sustainable development outcomes.

Today’s unique London forum brought diverse perspectives together from across the private sector, development and banking communities. Participants included representatives from the U.S. Government’s Overseas Private Investment Corporation, the Organisation for Economic Co-operation and Development, the International Finance Corporation, the European Commission, Citibank, Denham Capital and EY. Following an overview of MCC’s work and approach to blended finance, discussion focused on sharing experiences, lessons and best practices in using development resources to mobilize private capital flows into projects and investments with development outcomes. MCC experts then led sector-focused discussions on opportunities around MCC’s energy, transportation and water investments.

MCC’s work has already leveraged more than $6 billion in additional investments and commitments from the private sector and other development partners. The agency’s time-limited grants are designed to promote growth and private investment, creating more stable, secure countries with new business opportunities. Learn more about working with MCC by visiting the Work With Us section of MCC’s website.

Acting CEO Jonathan Nash is available for interview on this topic. If you are interested in scheduling an interview, please contact Laura Allen at allenlm@mcc.gov.

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The Millennium Challenge Corporation is an independent U.S. Government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.