Blended Finance as a Catalyst for Sustainability and Economic growth in Emerging Economies: The case of Morocco

Abstract

Blended finance has grown significantly over the last decade.  It provides a means to de-risk investments in sectors and geographies that are perceived as high-risk by traditional investors and could play a significant role in addressing global challenges especially in less developed economies. By mobilizing private capital for sustainable development, it can contribute to the achievement of the Sustainable Development Goals, which include a wide range of social, economic, and environmental objectives.  In the case of Morocco, there is no research that addresses the impact of Blended finance on economic growth and sustainability in the country.  In this qualitative exploratory study, the goal was to understand the role of Blended finance in attracting private capital needed to finance the substantial investment to boost economic growth in Morocco.  Findings showed that blended finance could play a crucial role in attracting investment, particularly in the agricultural sector, technology, and sustainable development projects, despite the challenges posed by bureaucracy and transparency that hinders the use of blended finance mechanisms.