Abstract

This research paper looks at the application of blended finance in Senegal. Southern Voice analysed the scope and magnitude of the use of the blended finance instrument including in the policy, regulatory and institutional realm. In addition, there has been a change in the government’s focus from a purely grant based donor approach to a combination of public and private donors to finance the SDGs.

Southern Voice conducted a qualitative inquiry. It surveyed key players involved in the implementation of the Sustainable Development Goals (SDGs) and the development finance in Senegal. Among those actors are: commercial banks, private equity funds, sovereign funds, strategic investments backed by the Government of Senegal, and Aid or Donor agencies.

Our findings conclude that Senegal has made use of blended finance for development through initiatives such as the Senegal Strategic Investment Fund (FONSIS). As part of the development finance toolbox, the blended finance instrument is the heart of the public- private partnership strategy in key sectors like health, water, energy and infrastructure. At the institutional level, reforms are still needed to enable financial arrangements and encourage the private sector to get involved from the very beginning of the projects’ life cycle. Major donor agencies and philanthropic funds are still missing players in Senegal, but their cooperation and engagement are vital.

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