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CATALYZE: Blended Finance Market

Development
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Private Sector Engagement Hub USAID CATALYZE: Mobilizing Capital for Development CATALYZE:
Blended Finance Market Development

Blended Finance Market

Development
USAID CATALYZE is focused on building a sustainable supply of private
capital, channeling it into high impact local firms, and ensuring a
conducive investment environment. CATALYZE views this as a
systemic approach, in which the five elements listed below work
together to positively influence the efficacy of each financial
transaction.

Institutions that Provide Financing, thereby strengthening

intermediation capacity, providing blended finance capital and
first loss, and providing guarantees and insurance.
Institutions that Require Financing, which provide partial grants
and cost sharing, as well as project prep and advisory support
services.
Intermediators like fintech and fund matchers & Facilitators like
advocacy, promotion, investment, and convening activities.
Financial Infrastructure that includes credit bureaus, registries
and payment systems.
Enabling Conditions, such as improved market regulation and
oversight, strong property rights and rule of law, and economic
stability and conducive fiscal policy.
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CATALYZE applies a Platform Concept to build relationships among

market actors and drive systemic change using three core elements:
market building to increase local capacity, pay for performance
incentives mechanisms, and stakeholder engagement through a
Community of Action.

CATALYZE engages with, builds the capacity of, and provides

incentives to business and transaction advisory service professionals
(BASPs), stakeholders that connect targeted enterprises to finance, as
well as financial intermediaries (FIs), especially local institutions, to
provide the needed finance to target enterprises. In addition to these
incentive-driven, Pay for Results (P4R) transaction modalities,
CATALYZE conducts market assessments, facilitates deal rooms,
supports incubation initiatives, and rolls-out other market building
and transaction support activities.

Through our robust monitoring, evaluation, learning, knowledge

management and communications strategies, CATALYZE engages key
stakeholders - locally, regionally, and internationally - in our
Community of Action to both support the transaction-focused work
and learn adapt and apply lessons from CATALYZE. This network
includes the supply and demand side actors, the intermediaries and
facilitators, and a diversity of stakeholders from finance and real

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economy sectors, such as regulators, academics and researchers, and

other donors.

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Activities Under CATALYZE

EDUCATION
FINANCE $42.9M
5 years (Oct 2019 – September
2024)
DRC, Rwanda, South Africa,
Improve
access to Tanzania, Zambia, Latin America
and & Caribbean
outcomes of
non-state 5 Partners (UBS Optimus
primary Foundation, Education
and early Partnership Group, Promoting
childhood
Equity in African Schools,
education
Opportunity International)

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WOMEN'S
ECONOMIC $9M
EMPOWERMENT5 years (Oct 2019 – September
2024)
Global

Support
women’s
employment
and
enterprise
development

DFC/GEWE
2X $1M
5 years (Oct 2019 – September
2024)
Global

Improving
the
economic
resiliency of
financial
institutions
and the
SMEs they
serve

ETHIOPIA:
MARKET $12.1M
SYSTEMS 4.5 years (May 2020 – September
FOR 2024)
GROWTH
Ethiopia
Competitiveness, workforce
development and business
enabling environment, primarily
in the food and fiber system
Foster markets
private
enterprise
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growth,
primarily in
agricultural
PERU:to
markets,
MOBILIZING
create jobs $5M
PRIVATE
and 4.5 years (May 2020 – September
increase
INVESTMENT 2024)
incomes
FOR
ALTERNATIVE Peru
DEVELOPMENT Agricultural market development
in the Amazon region

Increase
access to
finance for
rural
agricultural
enterprises

SAHEL
$6M
4.5 years (May 2020 – September
2024)
Sahel (Burkina Faso, Niger)
Increase
financing to Agricultural market development
support
for vulnerable communities in
capital
investment vulnerable regions
in the
agricultural
sector

SRI
LANKA: $5.7M
PRIVATE 4.5 years (May 2020 – September
SECTOR 2024)
DEVELOPMENT
Sri Lanka
Economic diversification focused
on tourism, ICT, and the
commercial care industry
Promote
economic

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diversification
and
employment
opportunities
for women
WESTERN
BALKANS: $4M
ENGINES 2 years (May 2020 – April 2022)
OF
Albania, Bosnia & Herzegovina,
GROWTH
Kosovo, Montenegro, North
Macedonia, Serbia
Enterprise competitiveness and
resiliency to COVID-19 and other
economic shocks
Increase
SME’s
access to
and use of
finance to
drive
Resiliency
enterprise
growth

Global economic shocks, such as the COVID-19 crisis, have substantial

consequences for SMEs and the individuals and communities that
depend on them. When properly harnessed - including through the
CATALYZE approaches described above - private sector capital has the
potential to bolster local markets, and in turn, support economic
rebound. By working with all market actors and stakeholders (SMEs,
Financial Institutions or other investors, as well as regulators,
researchers and other donors) CATALYZE will:

Help Financial Institutions craft new mechanisms that provide

SMEs with more flexible financing, such as variable payment loans
tied to revenues; and
Provide SMEs with technical assistance to build their
management capacity and increase their adaptability to weather
crises;

These approaches will not only improve resilience to the current

global crisis but will increase SMEs resiliency to future local or
international shocks.

Learning Briefs
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MS4G Learning Brief - CATALYZE

USAID CATALYZE MS4G is designed to strengthen
and mobilize the private sector to transform the
fo

EoG Learning Brief WSMEs A2F -

CATALYZE
The CATALYZE Engines of Growth (EoG) Activity
supports the resilience, growth, and job creation
o

EoG Learning Brief PE VC - CATALYZE

The USAID CATALYZE Engines of Growth (EoG)
Activity supports the resilience, growth, and job
crea

EoG Learning Brief FinTech -

CATALYZE
The overall purpose of the EoG Activity is to
support the resilience, growth, and job creation
of

Peru Learning Brief - CATALYZE

CATALYZE Peru seeks to stimulate sustainable
and responsible economic development and
growth in P

F4R Learning Brief - CATALYZE

USAID CATALYZE Finance for Resilience (F4R) uses
blended finance, mostly in the form of incentive

EduFinance Learning Brief Nairobi

Learning Event - CATALYZE
This Learning Brief serves as a summary of
learnings identified and discussed during the
March 20

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