Consultancy Support to DanChurchAid’s Blended Finance Work

DCA has for several years worked with local private sector, civil society, and financial institutions to develop financially sustainable solutions to climate, development and humanitarian needs in countries in Africa, Asia, and the Middle East. DCA aims to further strengthen its organisational capacity and operational approach to blended finance initiatives by establishing a global Blended Finance Modality (BFM) for development, humanitarian and climate action. The modality is designed to catalyse private sector finance in combination with grants-based funding as risk-willing capital to promote financial inclusion for people affected by poverty, wars and conflicts, food crisis and climate change. To support this effort, DanChurchAid (DCA) is seeking a consultant that will strengthen DCA’s capacity to promote long-term sustainability through a blended finance modality in its international programme work based on DCA’s country programmes in selected countries. The consultant will provide technical advice, support and guidance to enhance DCA’s strategic initiatives in this area.

The consultant will be engaged on a framework agreement, providing services as and when required for the period from signature of the Contract by both parties to 31st December 2026. For 2025, the consultant is expected to deliver 8 hours per week on average. The blended finance work is led by DCA’s Private Sector & Market Systems (PS&MS) Team in the Programme Advocacy and Learning (PAL) Unit at DCA’s HQ in Copenhagen. The consultant will report to the Head of the PAL Unit, and work closely together with DCA’s Senior Advisor on Blended Finance and other relevant programme staff in Head Office and Country Offices, as well as partners and stakeholders in Denmark and globally.

BACKGROUND INFORMATION

The consultant will contribute to advancing DCA’s pathways and solutions related to implementing the strategic goals set in DCA’s global strategy goals 2023-2026 particularly in relation to financial sustainability, private sector engagement, and innovative financing models. In this context, DCA’s global strategy has set the following goals:

• We will scale up innovative private sector and multistakeholder partnerships that are inclusive and locally led. This approach will also apply in conflict and crises contexts. We will strengthen the financial sustainability of our interventions through innovative blended financing models.
• We will strengthen innovative green solutions and mobilise resources to develop pro-poor food and market systems. We will do this through dynamic multistakeholder partnerships and blended finance models promoting locally led solutions and working in favour of the poorest, the climate and the environment. We will strengthen the capacity of small-scale producers and local partners on environmental restorative practices and market-based approaches. To underpin these initiatives, we will promote responsible business conduct through human rights and environmental due diligence in the design of project and business models as well as through local and global advocacy efforts.
• We will support communities to enhance financial inclusion. We will increase access to financial services, including savings, loans, and insurance systems, especially for women and youth, and support initiatives that pioneer digital solutions and innovative entrepreneurship (p. 24)
• A core part of DCA’s strategy is our proactive approach to diversify funding streams and attract funding for innovative solutions. DCA will seek to strengthen the financial sustainability and scale of our interventions, for example in value chain and green livelihood projects, through new alliances with private sector partners, financial service providers, foundations, crowd funders, institutional donors and impact investors. In this strategy period, DCA will develop and test blended finance mechanisms in the field of impact business and investments.

THE ASSIGNMENT

The consultant will support DCA’s work on blended finance by providing technical expertise, strategic guidance and advisory services in close coordination with the Senior Advisor on Blended Finance. Specific tasks will include giving direction to DCA’s blended finance strategy, supporting the Blended Finance Task Force and strengthening financial sustainability frameworks in addition to developing blended finance solutions linked to DCA’s pipeline of projects in selected countries.

The work will build on and leverage the knowledge of PAL, particularly PS&MS team, and Country Offices working on the interlinkages between private sector partnerships, resilience and value chains, market systems, blended finance, responsible business conduct, climate change and environment. It will link to the work on Innovation scaling methodologies building on the projects and learnings from DCA’s Innovation Fund.

The consultant will regularly liaise with relevant advisors and management teams via the Head of PAL. The role involves alignment with DCA’s senior management in a steering group that ensures coherence with DCA’s fundamental principles, cross-cutting commitments, and Global Goals when piloting and implementing a blended finance approach.

SCOPE OF WORK

The consultant’s responsibilities will include, but are not limited to:

• Strategic Advisory and Technical Services: Provide strategic and technical support on blended finance initiatives and provide guidance to relevant operational approaches in addition to supporting the work of the Blended Finance Steering Group at project level.
• Task force participation: Support and participate in the Blended finance Task Force and Steering Group, providing technical inputs and contributing to the implementation of work plans.
• Financial Sustainability Framework: Design and present a framework that outlines strategies for achieving financial sustainability demonstrating how innovative blended finance models can facilitate scaling, leveraging DCA’s grants-based funding model.
• Project Portfolio Development: Provide technical advisory support in development and implementation of a portfolio of blended finance projects, with a targeted funding volume linked to DCA’s blended finance modality.
• Performance monitoring: Develop and operationalise a framework to monitor the effectiveness and impact of blended finance projects from a due diligence and risk management perspective.
• Resource Mobilization: Support development of a fundraising strategy for blended finance interventions and engage with relevant donors, partners, and stakeholders if requested.
• Review and Recommendations: Conduct a mid-term review in 2025 of DCA’s blended finance initiatives and provide actionable recommendations for future improvements into 2026 and beyond.

EXPECTED DELIVERABLES

• A financial sustainability framework outlining key approaches and risk management measures
• A pipeline of blended finance projects with clearly defined investment models linked to DCA’s blended finance modality
• Successful raising of new and additional funds for at least one project with external funding
• A fundraising strategy for blended finance projects/pipeline, including identification of potential partnerships and alliances through a shared-value approach
• A performance monitoring framework for assessing project impact and financial sustainability
• A mid-term review with strategic recommendations for future actions

DURATION AND WORK ARRANGEMENT

• The contract will run from signature of contract to 31st December 2026 on a framework basis.
• The consultant will work on specific assignments and tasks agreed upon in advance.
• Remote work is permitted, with flexibility to work from DCA’s head office in Copenhagen as needed.
• Regular check-ins and coordination meetings with relevant teams will be required.

QUALIFICATIONS AND EXPERIENCE

• Extensive technical experience in blended finance, impact investment, or financial inclusion
• Strong knowledge of financial sustainability models and private sector engagement
• Proven track record of developing blended finance projects from A to Z
• Solid experience of working with innovative financing and grants-based funding in a development and humanitarian context
• Proven ability to work in a multidisciplinary and cross-sectoral environment
• Ability to work within complex organizational contexts to achieve tangible results
• Excellent analytical, communication and advisory skills