NUTRITION AGENDA CHALLENGES AND OPPORTUNITIES IFPRI Workshop - - - PowerPoint PPT Presentation

PUBLIC-PRIVATE PARTNERSHIP & THE NUTRITION AGENDA CHALLENGES AND OPPORTUNITIES

IFPRI Workshop - October 31, 2017 Nelly Fezé

• Sr. Industry Specialist

October 31, 2017

Private sector financing ecosystem

Non commercial Early Stage Late Stage Enterprise maturity

Public sector High Market returns Low Foundations /Donors Impact investors Family Offices Venture Capital Private Equity

IFC Advisory Services

IFC Investment Services

DFIs Financial Institutions / banks Pension funds

2

GAFSP Supports Blended Finance Solutions in Agriculture

Market/fully commercial activities Commercial and developmental (DFIs)

Not fully commercial

Gap: In need of temporary subsidy

Not fully commercial

Gap: In need of LT/permanent subsidy Public Sector (Government/NGOs)

Fully Commercial Requires a form of subsidy

✓ Circumstances where: ▪ there is a lack of commercial viability (because of perceived or real risks, or costs) that results in “under-investment” in activities that can lead to high social benefits ▪ risk/reward balance for private sector can be achieved over time ✓ IFC and other DFIs can play a role, to a certain extent ✓ Blended Finance Solutions to private sector can “fill the gap” in the market and catalyze additional investments

3

IFC investments into healthier food systems

Risk sharing facilities Loans, equity Risk sharing facilities Loans, equity Technical assistance/small holders capacity building Loans, equity Loans, equity Technical assistance/food safety Loans, equity Technical assistance/food safety

4

BOP-affordable nutritious foods & supply chain inclusiveness: AIF Rwanda

Institutional buyers

Government

• f Rwanda

Government

• f Rwanda

Retail

Selected 11 Farmer Cooperatives Loans, Equity

DFIs

KCB Rwanda Partner Bank

Government

• f Rwanda

Complementary food Maize, Soy bean

DFIs, GoR, Foundation

Complementary food Loans Seeds, fertilizers Input suppliers

Risk Sharing Facility, Credit Line Technical assistance Advisory services

Side selling Aflatoxins Won’t grow soy Higher quality product vs. competition Lack of standards Not a sustainable business 45,000 tons

Payment to Collection Account for repayment 5