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 High Venture Capital Financial Institutions / banks Private Equity Market returns DFIs IFC Investment Impact Family Services investors Offices Pension funds Public sector Foundations /Donors IFC Advisory Services Low Non Early Late Stage commercial Stage Enterprise maturity 2
GAFSP Supports Blended Finance Solutions in Agriculture ✓ Circumstances where: Market/fully ▪ there is a lack of commercial viability Commercial commercial activities (because of perceived or real risks, or costs) Fully that results in “under - investment” in Commercial and activities that can lead to high social developmental (DFIs) benefits Not fully commercial ▪ risk/reward balance for private sector can be Gap: In need of Requires a form of subsidy temporary subsidy achieved over time Not fully commercial ✓ IFC and other DFIs can play a role, to a certain Gap: In need of LT/permanent extent subsidy ✓ Blended Finance Solutions to private sector can “fill the gap” in the market and catalyze Public Sector additional investments (Government/NGOs) 3
IFC investments into healthier food systems Risk sharing Risk sharing Loans, equity Loans, equity facilities facilities Technical Technical Loans, equity Loans, equity Loans, assistance/food assistance/food Technical equity safety safety assistance/small holders capacity building 4
BOP-affordable nutritious foods & supply chain inclusiveness: AIF Rwanda DFIs Complementary 45,000 tons Loans, Institutional food Equity buyers Government Government of Rwanda of Rwanda Not a Risk Sharing Facility, sustainable Credit Line Payment to Maize, Complementary business Collection Account Soy bean food KCB for repayment Rwanda Partner Loans Retail Bank Selected 11 Farmer Cooperatives Input suppliers Higher quality Seeds, product vs. fertilizers competition Lack of Side selling standards Aflatoxins Technical assistance Government Advisory services Won’t grow soy of Rwanda DFIs, GoR, 5 Foundation
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