The structured funds' large risk buffer reduces the risk for private investors, who thus have an incentive to invest in regions and sectors that they consider to be risky. So far, however, the mobilisation of private funds has been particularly successful in countries that are considered less risky, including Southeastern Europe, while the mobilisation of private funds has been less successful in Sub-Saharan Africa. Consequently, private investors account for less than 30 percent of total resources in most funds. Nevertheless, due to the funds’ high financing volume overall (provided by public donors, development finance institutions and private investors), structured funds contribute to covering the financing needs in developing and emerging countries and thus also have the potential to cushion private investors' capital flight as a consequence of the coronavirus pandemic. An increase in public funding might at least prevent private investors from withdrawing further resources from these funds. In doing so, the funds can respond flexibly to the needs of particularly affected countries and sectors, as they usually operate regionally or even globally. New funds, on the other hand, take a relatively long time to set up and are therefore not suitable for addressing short-term provision of financing as needed in times of crisis.
Since the funds grant loans at standard market conditions, they are less suited to financing the poorest countries or financial institutions with particularly risky portfolios and marginalised groups, although these are impacted the most by crises. Structured funds should therefore be considered as complementary to other approaches such as grants, which are non-repayable and therefore lay no claims on economic viability. In addition, structured funds are currently mainly active in the MSME sector. Through the coronavirus pandemic, however, considerable financing needs in sectors, in which structured funds had only invested sporadically or not at all until now, have become more urgent. This applies above all to the health sector, but also to the education, water and sanitation sectors.