Problem
The Solomon Islands possessed significant potential for tourism-led economic growth, but high perceived risks and a lack of enabling infrastructure deterred the necessary private sector investment. The challenge was to create a financing structure that could absorb early-stage risks to attract pioneering private capital.
Methodology
As the lead for this joint MCC-IFC initiative, my role was to design and secure approval for a blended finance facility.
- Data Collection & Analysis: Conducted market analysis and financial due diligence on potential tourism investments, assessing their commercial viability and potential for economic impact. Aggregated data on tourist arrivals, infrastructure gaps, and investment barriers.
- Modeling & Technique: Designed a blended finance facility that combined public grant funding with private investment. This involved building a financial model to structure a first-loss guarantee, reducing the risk for private investors and improving the overall bankability of tourism projects.
- Communication & Strategy: Led negotiations between the IFC, the Solomon Islands government, and MCC. I presented the facility structure, risk allocation, and expected economic returns to senior leadership, ultimately securing a multi-million dollar commitment.
Outcome
The facility was designed to unlock a critical sector for economic diversification and job creation in a fragile state.
- Strategic Impact: Directly informed MCC’s decision to commit over $10M in catalytic first-loss capital, unlocking a larger pool of private and development finance from the IFC.
- Operational Impact: Created a streamlined, one-stop facility for investors, simplifying the process of securing financing and government support for tourism projects in a challenging market.
- Knowledge Impact: Delivered a concrete model for how U.S. grant funding can be used strategically to de-risk and mobilize significantly larger sums of private capital in frontier markets.