Blended finance key to sustainability

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

According to the African Development Bank, what is Africa’s estimated annual infrastructure financing shortfall? 

150 billion dollars to 200 billion dollars  

20 billion dollars to 40 billion dollars

300 billion dollars to 500 billion dollars

68 billion dollars to 108 billion dollars

Which regions has Climate Policy Initiative identified as the top regions for blended finance? 

Europe and North America 

Middle East and North Africa

Latin America and the Caribbean 

Sub-Saharan Africa and South and East Asia

By 2030, how much clean energy investment potential did Climate Policy Initiative estimate for eight countries, including five in Africa? 

None of the other answers

3.6 billion dollars  

360 billion dollars

36 billion dollars  

According to Climate Policy Initiative, what level of annual climate finance will be needed from 2024-50 to mitigate the worst impacts of climate change? 

4.5 trillion dollars

45 billion dollars

8.6 trillion dollars

86 billion dollars

Which of the following are categories of blended finance instruments highlighted in the article?

Full lifecycle financing facilities

Guarantee facilities designed to reduce investor risk

All of the other answers

Results-based finance and carbon finance

With which agency(ies) did Rwanda recently announce a 213 million euro financing package?

Multilateral Investment Guarantee Agency

World Bank Group Guarantee Platform

All of the other answers

International Development Association

Why can currency mismatch create problems for African infrastructure projects? 

Local currencies are fixed to the US dollar

Projects generate revenues in US dollars but borrow in local currency 

Projects often borrow in US dollars but generate revenues in local currencies

Governments prohibit foreign currency borrowing

What does Matthew Hurworth describe as the ‘acceleration gap’? 

The time required to secure government approval

The gap between infrastructure demand and supply 

The period between proof of concept and attracting institutional-scale investment

The gap between public and private sector financing 

According to Johan Greyling, what is the key factor in attracting private capital to infrastructure projects? 

Relaxing environmental regulations

Increasing the availability of foreign aid 

Ensuring appropriate risk mitigation and well-structured deals

None of the other answers

Which financial instrument is most suitable for addressing foreign exchange exposure? 

Currency hedging facilities 

Political risk guarantees

Results-based finance

First-loss capital 

1 Unit