Four non-governmental organizations have been selected to receive grants and technical support to develop blended finance solutions aimed at mobilizing private investment for climate action and gender equality across the Indo-Pacific. The announcement was made at the Impact Investment Summit Asia Pacific by Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT), which jointly launched the first cohort of the Indo-Pacific NGO Blended Finance Accelerator.
The accelerator is a five-year initiative funded by DFAT and implemented by Convergence Blended Finance to strengthen the role of NGOs in blended finance. It provides catalytic grant funding and acceleration support to help organizations design, launch, and scale financial structures that combine public, philanthropic, and private capital. More than 80 applications were submitted for the inaugural round, reflecting growing interest among NGOs in using blended finance to address development challenges and funding gaps. Over 70 percent of applicants were local NGOs, highlighting strong local leadership and understanding of regional needs, particularly in climate-vulnerable and underserved markets.
NGOs are increasingly exploring blended finance as traditional donor funding becomes less predictable while development needs continue to expand. Many organizations have demonstrated impact through their programs but require additional capital to scale their work. Blended finance offers a pathway to attract private investment alongside philanthropic and public funding. Despite this potential, data from Convergence Market Data shows that only 17 percent of blended finance transactions currently involve NGOs in their design or implementation, indicating a gap between interest and participation. Barriers such as limited expertise in financial structuring, regulatory complexities, and internal capacity constraints have often limited NGO involvement. The accelerator aims to address these challenges by equipping participating organizations with the skills, tools, and support needed to develop innovative financing models and scale their projects.
The first cohort of awardees represents a diverse set of NGOs working across the Indo-Pacific region on initiatives that combine development impact with investment opportunities. Good Return has been awarded an expansion grant to scale the Good Return Impact Investment Fund II, an evergreen blended finance facility valued at about USD 6.9 million. The fund will support underserved micro, small, and medium enterprises across the Asia-Pacific region, focusing particularly on women-led and climate-resilient businesses. By partnering with financial service providers and using guarantees and lending facilities to attract commercial capital, the initiative aims to support around 5,000 enterprises over the next decade, with at least 70 percent of beneficiaries expected to be women-led or women-owned businesses.
Oxfam Australia, working with OBOR Management Co. Ltd., has received a scoping grant to design the Equi-Green Fund, a proposed USD 20 million blended finance vehicle that will invest in climate-resilient and gender-responsive small and medium enterprises in Cambodia, Indonesia, and Timor-Leste. The fund plans to provide early-stage venture capital and technical assistance to businesses operating in sectors such as renewable energy, the circular economy, and climate-smart agriculture. The accelerator will help validate the fund’s assumptions, refine its financial model, support fundraising efforts, and secure commitments from anchor investors.
Save the Children Global Ventures has been awarded a proof-of-concept grant to develop the Asia Healthcare Fund, a blended finance initiative expected to mobilize between USD 30 million and USD 50 million. The fund will invest in innovative healthcare ventures that improve services for women and children across Southeast Asia and Pacific Island countries. It aims to expand access to diagnostics, nutrition services, and community-based healthcare while supporting scalable solutions. The initiative also intends to improve the health and nutrition of around five million children and train more than 100,000 women health workers in the region. Support from the accelerator will focus on finalizing the legal structure, establishing governance and operations, identifying investment opportunities, and attracting investors.
Another proof-of-concept grant has been awarded to a partnership involving Xpand Foundation, Foundation Rai Matak, and Pollination to design a blended finance platform focused on community-led agroforestry in Timor-Leste. The proposed platform, expected to mobilize between USD 20 million and USD 25 million, will provide upfront financing to local partners who support smallholder farmers in planting and maintaining trees on their land. The initiative aims to create livelihood opportunities for around 20,000 farmers, restore degraded landscapes by planting 10 million trees, and generate an estimated 15 to 25 million tonnes of verified carbon credits over the lifetime of the programme.
The inaugural cohort highlights how NGOs across the Indo-Pacific are exploring new financial approaches to address development challenges while attracting private sector participation. By supporting organizations as impact managers, technical assistance providers, and potentially fund managers, the accelerator seeks to expand the role NGOs play in blended finance ecosystems.
Following the completion of the first cycle, the Indo-Pacific NGO Blended Finance Accelerator plans to launch its second cycle on 1 June 2026, opening new opportunities for NGOs interested in developing innovative financing solutions to support sustainable development across the region.
