Agriculture remains a cornerstone of African economies, yet the sector faces persistent financing challenges. Smallholder Farmers, agribusinesses, and financial institutions struggle to access suitable financial solutions capital at scale that are fit for purpose for the businesses, limiting productivity, value chain development, and food security. Blended financeSector specific investment funds — strategically combining public and private investment — offers a powerful tool to unlock sustainable financing for agriculture along crowding in private sector capital if structured as blended finance instruments.
This InfoPoint session, which is co-organized with AATIF and the FAO Investment Center, showcased AATIF’s impact through firsthand experiences from an agribusinesses and financial institution that have leveraged its support. It detailed how the interplay between investment capital and technical assistance can act catalytically to support the de-risking of investment opportunities, equip companies with tools and capacity needed to manage their growth as sustainable businesses. It also provided key insights and lessons learned in designing and implementing EU blended finance instruments for agrifood systems.
AATIF discussed risk-return dynamics and how public-backed junior funding and guarantees catalyse commercial capital for agriculture, presenting two case studies of investee companies. The FAO Investment Centre shared key lessons learned from designing and implementing blended finance vehicles, highlighting as well key trends, challenges, and opportunities for scaling sustainable agricultural investment.
