Anchoring the blended finance structuring approach on the local context in Sub-Saharan Africa (SSA): a system dynamics approach

Framed as a tool to strategically mobilise private sector capital, it is widely acknowledged that the Blended Finance Structuring Approach (BFSA) holds promise. However, connection to the local dimension is the most significant challenge for financial actors. In addition, anchoring the mechanism on the local context in developing economies is a major challenge. Therefore, to explore the local context in a systemic and holistic manner, the research, anchored on critical realism as its philosophical approach and Systems
Theory/Collaborative Model as its theoretical /conceptual framework, proposed the adoption of the Systems Thinking/System Dynamics methodology. It argues that the problems under exploration is not only complicated and trans- disciplinary in nature but also non-linear with feedback loops, two-way interconnections and interrelationships. Thus, the research, by proactively and systematically identifying potential sensitive intervention points (SIPs) within the BFSA architecture in SSA, will advance our understanding of intervention points of maximum influence that could possibly provide possible future finance flow pathways for clean energy investments in SSA.