Blending and Support to Private Sector Development

Blending is an instrument for achieving European Union (EU) external policy objectives, complementary to other aid modalities and pursuing the relevant regional, national and overarching policy priorities. It is the combination of EU grants with loans, risk capital or guarantees from public and private financiers. The idea behind the instrument is that the EU grant element can be used strategically to attract additional financing for important investments for development in EU partner countries.

This reference document complements the Guidelines on EU blending operations by providing basic information on how potential support can be delivered by EU blending operations in the area of private sector development.