Investments in agriculture are critical to reducing poverty and boosting food security. Strengthening agriculture and food systems has the potential to improve the lives of millions of farmers and presents tremendous opportunities for people along the value chain, from farmers to consumers.
Agribusiness is diverse and complex, and a successful value chain requires the entire system to perform. But in many countries, the sector faces significant challenges, including resource scarcity, climate change, and access to finance. IFC is uniquely positioned to lead in agribusiness investment with its private and blended finance solutions, as well as advisory services tailored to the needs of large and small businesses. Blended finance allows IFC to support projects in the agricultural sector that may not attract commercial funding due to perceived high risks in this sector. It also allows for the provision of affordable funding with less demanding terms, which allows IFC to invest in early stage or riskier projects that hold high potential for development impact and financial sustainability.
IFC’s strategic objectives for agribusiness are guided by providing enhanced food security, driving economic development and inclusiveness, and making sustainability a driver of business. We continue to focus on climate-smart investments and creating market initiatives, particularly in fragile and conflict countries.
The Global Agriculture and Food Security Program (GAFSP) Private Sector Window uses blended finance solutions and concessional funding to support projects designed to improve the livelihoods of smallholder farmers living in the world’s poorest countries. Investing across the entire food supply chain, from farm inputs to logistics and storage, to processing and financing, the Private Sector Window specializes in early-stage agribusiness projects with a high potential for development impact.
- Every $1 of Private Sector Window funding leverages more than $6 of private sector funding.
- On target to reach 4.5 million farmers$436 million deployed
- 81 investment projects in 27 countries
Working alongside IFC, the GAFSP Private Sector Window applies blended finance solutions and IFC’s expertise and knowledge to invest in projects that may not attract commercial funding due to perceived high risks in the agricultural sector. GAFSP funding is co-invested alongside IFC funding, but the Private Sector Window takes it one step further: addressing market failures by providing affordable funding with less demanding terms. This allows the Private Sector Window to invest in early stage or riskier projects in IDA and fragile and conflict-affected states that hold high potential for development impact and financial sustainability. GAFSP partners with companies who include smallholder farmers as part of their overall value chain, providing access to markets, financing, and storage, and increasing production and incomes for those living and working in the world’s lowest income countries.
Advice and technical support are also a critical part of GAFSP Private Sector Window work as a comprehensive blended finance solutions provider. Through IFC’s Advisory Services, GAFSP helps raise capacity building by providing on-the-ground training and advice for businesses and farmers in improving farmer productivity, strengthening standards, reducing risks and mitigating climate change effects.
GAFSP Private Sector Window is supported by the following development partners: Australia, Canada, Japan, the Netherlands, the United Kingdom, and the United States.
The India Agritech Facility (BMGF-IAF) de-risks IFC’s early-stage equity investments in agriculture technology (agritech) companies in India and aims to develop solutions for Indian smallholder farmers by investing in private sector-led innovations in agriculture technology and business models that have the potential to be deployed at scale.
The facility, which was launched in 2018, helps demonstrate investment models that successfully balance sector risks, commercial success and impact goals, with the potential to attract additional sources of investment capital. It also strengthens the partnership between The Bill & Melinda Gates Foundation and IFC, capitalizing on the shared vision of achieving inclusive agricultural transformation and the complementary strengths of agriculture teams in the two organizations.