Blended Binds: How DFI’s Support Programs Stifle Bank Lending in Africa
Organized by the Private Sector Development Research Network
Hosted by the African Development Bank Group (AfDB)
Moderated by Francis Kemeze, Chief Research Economist, AfDB
Friday, 20th of June 2025 from 9-10am EDT / 1pm Abidjan
CLICK HERE TO REGISTER
ABOUT THE SEMINAR
This seminar will discuss important research that addresses our understanding of blended finance in development. While blended finance has become central to development strategies—combining public resources with private capital to tackle global challenges in developing countries—empirical evidence on its effectiveness in leveraging private lenders’ credit supply has remained scarce.
The paper that will be presented during this seminar fills this knowledge gap by examining the lending behavior of African banks that received support through intermediated lending programs from major development finance institutions between 2010 and 2021. Using comprehensive bank-level data, the research reveals a surprising 8% decline in loan growth among supported banks following program implementation. This counterintuitive outcome appears to stem from recipient banks’ limited absorptive capacity, causing them to focus on new clients while neglecting existing borrowers.
The discussion will also cover the research findings on the absence of spillover effects to ineligible banks and the contrasting observation that supported microfinance institutions maintained stable lending activity throughout the same period.
ABOUT THE SPEAKER
Florian LÉON
Senior Economist, Fondation pour les Études et Recherches sur le Développement International (FERDI) / Associate Researcher, CERDI-UCA
Dr. Florian LÉON is Senior Economist at the Fondation pour les Études et Recherches sur le Développement International (FERDI) and an associate researcher at CERDI-UCA. His research interests focus on private sector development and finance in Africa. Dr. LÉON currently serves as the scientific coordinator of the Development Banks Program, and the Impact Investing Chair.
He employs rigorous analytical methodologies to examine financial dynamics in developing economies. His recent work investigates development finance institutions and their impact on bank lending in Africa, monetary policy transmission in developing countries, and the relationship between political connections and firm behavior.
Prior to joining FERDI in 2020, he served as a Postdoctoral Researcher at the University of Luxembourg and as a Lecturer and Researcher at CERDI. Dr. LÉON holds a PhD in Development Economics from CERDI-University of Auvergne, where he is currently an associate researcher.
All his publications are available here.
ABOUT THE MODERATOR
Francis Kemeze
Chief Research Economist, African Development Bank Group (AfDB)
Dr. Francis Kemeze is a Chief Research Economist at the African Development Bank Group. His research interests focus on inclusive financing, with particular emphasis on behavioral and experimental economics applied to finance, insurance, and value chain development. Dr. Kemeze specializes in large-scale RCT experiments that produce evidence-based insights for public and private policy decisions, and is currently preparing to implement a 3-year RCT project in Ghana testing bundled deficit irrigation and index insurance solutions for farmers.
Prior to his current role, Dr. Kemeze held a visiting appointment at The Ohio State University and has amassed over 15 years of experience with international development finance institutions, academia, and think-tanks. He joined the African Development Bank in 2018 as Senior Research Economist, where he assesses additionality and development outcomes of the Bank’s private sector operations.
Dr. Kemeze holds a Ph.D. in Applied Agricultural Economics and Policy from the University of Ghana and a Master’s degree in Economics from the University of Yaounde II in Cameroon. He is a recipient of the Norman Borlaug Leadership Enhancement in Agriculture Program Fellowship and has been recognized as a Fellow at the European Investment Bank and Global Development Network Program.
Click here to access Dr. Kemeze’s publications.