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Innovative donor approaches and sustainable finance – A Review of UNFSS+2

2023-09-14

Global Donor Platform for Rural Development (GDPRD)

Two years following the UN Food Systems Summit, the Global Donor Platform for Rural Development and the Shamba Centre for Food & Climate hosted an official side event at the UNFSS+2. The event explored how donors and public funds are working continuously to enhance the impact of their investments to achieve the SDGs and transform food systems.

By Global Donor Platform for Rural Development (GDPRD)

GDPRD is a network of 40 bilateral and multilateral donors, international financial institutions, intergovernmental organizations, foundations, and development agencies. Set up in 2003 following the first High-Level Forum on Aid Effectiveness in 2002, it brings together donors that believe the best way to tackle global poverty and hunger is to develop agriculture, reshape food systems, and invest in rural communities. More here.

All contributions

This article appeared first on the Donor Platform website.

Watch the event recording.

Participants at the event shared experiences on their collective efforts to make funding more catalytic in order to make genuine progress in ending hunger. They discussed the following:

How can donors make their funding more catalytic?
How can Official Development Assistance (ODA) for food systems better align with and synergize with other sources of development finance, such as climate finance, gender finance and emergency assistance?
To what extent should donors utilize their ODA grants and concessional loans to mobilize additional development finance from philanthropic and private finance providers?
How important is public funding for de-risking investments in food systems?

Highlights from the side event:

Tristan Armstrong, Co-Chair of the Donor Platform, recounted that the global community was challenged in 2021 to significantly increase investments in food systems transformation by an ambitious US$330 billion per year as detailed in the Ceres 2030 report. While there are numerous methodologies for estimating ODA funding for food systems, the consensus is that current amounts are around US$20-30 billion per year. Tristan emphasized the need for bold actions, risk-taking, and creating new partnerships to bridge the funding gap.

We must learn from the evidence that is already out there.

Tuleen Alkhoffash, Senior Partnership Officer, International Fund for Agricultural Development (IFAD), shed light on blended finance to lower commercial risk and leverage private sector investment. She explained mechanisms such as guarantees, which are provided by Multilateral Development Banks (MDBs) to commercial banks’ lending to SMEs. Guarantees serve as cash collateral against loan defaults for lenders who are considered high-risk (oftentimes women or the rural poor). She also elaborated on the use of incentive payments, when a borrower takes out a loan but receives an incentive in return because of the nature of the loan (i.e. energy saving, green). Cashback incentives are also provided through MDBs by donor grants.

Hans Hoogeveen, Independent Chairperson of the Council, Food and Agriculture Organization of the United Nations (FAO) acknowledged the bold statements made during the UNFSS+2 Stocktaking Moment about creating a new financial architecture and the efforts of many, including the World Bank, to set up data systems on financing for food systems transformation. Hans pointed out that while data is crucial, countries know what they are investing in their food systems, and efforts from the World Bank and IMB are the keys to unlocking private sector investments at a massive scale through risk financing.

Christopher Wayne, Associate Director, Investing in Agriculture, Acumen, shared the organization’s model of investing patient capital to empower small and medium-sized enterprises. The approach joins the rigor of private markets with the flexibility and social ambition of philanthropy. Christopher provided examples of patient capital being used to support investments, the returns of which are then recycled into new investments and associated costs.

Lizard Earth, a cocoa aggregator in Sierra Leone, had been facing difficulties with inefficient agroforestry practices and supply chains. Lizard Earth structured a business model around a 365-day climate-resilient agricultural training programme for farmers, including a community-level fermentation and drying centre and centralized processing and management. This model helped farmers grow better cocoa and sell it at a premium price, creating transformational value for smallholders. The farmers reported a minimum income increase of 30%, and 97% reported improved quality of life.

EthioChicken, a poultry company originally based in Ethiopia, provides small farmers with disease-resistant, productive chickens that thrive in local, rural conditions. In 2014, Acumen invested US$500,000 into the company, which was selling 600,000 chickens per year at the time. Today, the company sells 600,000 chickens per week and has expanded to other countries, including Kenya, Rwanda, and Uganda. Christopher concluded,

We need entrepreneurs with big ideas to take big swings, and they need patient capital willing to take and share risks with them.

Tshewang Dorji, Climate Change Specialist, Global Environment Facility (GEF), highlighted the interlinkages between climate and food systems financing for “sustainable food systems that are nature positive, resilient and pollution reduced” to make a visible impact on the ground. GEF Least Developed Countries Fund (LDCF) administers grant funding support for climate change adaptation action in 46 least-developed countries, 66% of which are in Africa. This four-year strategy will provide US$20 million per country through four thematic focus areas, (1) agriculture, food security and health, (2) water, (3) early warning and climate information systems and (4) nature-based solutions. Tshewang noted the synergies of climate and food systems financing, stating that “each of these thematic areas is closely interrelated in what happens in the food system sector.”

Iris Krebber, Head of Food Security, Land and Agriculture and Senior Adviser, Foreign, Commonwealth and Development Office (FCDO) stressed the importance of transparency in blended financing and alignment of objectives among various parties involved.

If we want to help smallholders invest in their future, beyond the next five years, [we must] be clear about what really benefits them and what prevents maladaptation. All these things need to be on the table, need to be looked at, need to be agreed before investment choices are made and agreed, and they need to be accompanied with robust monitoring.

She also stressed the significance of de-risking investments and leveraging donor grants to attract private-sector funding.

In summary: Where do we stand and what’s next?

The event speakers collectively stressed the critical need to increase private sector collaboration, de-risk investments, and revitalize small and medium-sized enterprises to achieve food systems transformation at scale.

“Business as usual“ will not be enough.

The Shamba Centre for Food & Climate’s co-founder and event moderator Oshani Perera concluded by emphasizing the critical role of “trust, collaboration and the systemic link between the providers of philanthropy, capital, and risk money” to bring about meaningful change.

For further insights into the GDPRD workstream with the Shamba Centre on sustainable finance for food systems, explore how donors, international public funds, and philanthropic organizations can make their funding more impactful and serve as a catalyst for achieving SDG 2. Reach out to us to be part of the interviews and workstream.

Visit the event page.

Co-organized by the Global Donor Platform for Rural Development and the Shamba Centre for Food & Climate, this official side event took place on 24 July 2023.

CONTACT | GDPRD
Maurizio Navarra, Secretariat Coordinator at the Global Donor Platform for Rural Development. maurizio.navarra@donorplatform.org

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BMZ releases video on the transformation of agricultural and food systems

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“More of the same is not enough - we need to rethink”

An interview with Dirk Meyer

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Agricultural prices and food security – a complex relationship

A Contribution by Dr. Fatima Olanike Kareem and Dr. Olayinka Idowu Kareem

High agricultural prices affect developed and developing countries alike, but the problem is aggravated for the latter through the lack of or inadequate resilience measures. Dr. Fatima Olanike Kareem, AKADEMIYA2063, and Dr. Olayinka Idowu Kareem, University of Hohenheim, explain what can be done to mitigate the negative effects on food security.

Strengthening the market linkages of smallholders in the face of global supply shocks

A Contribution by Niladri Sekhar Bagchi

The consequences of the Russian invasion of Ukraine have enabled many countries to open up new export markets for their agricultural goods. However, smallholder farms have been largely left out. Drawing on his experience in India, our author gives a brief overview of how this can be changed.

“It created hope. It created a life”

An interview with Ally-Raza Qureshi, WFP

Iraq suffered many years of war, sanctions and economic crises. However, Ally-Raza Qureshi from the World Food Programme in Iraq sees progress. But now the effects of climate change are becoming apparent in the country. What is to be done?

What is needed for a long-term fertiliser strategy?

A contribution by Michael Brüntrup

The world is currently experiencing a historic food crisis. High fertiliser prices are part of the problem. In addition to the necessary short-term aid measures, the crisis ought to be made use of to develop and implement longer-term fertiliser strategies for sustainable, in particular smallholder increases in production in the Global South.

New Podcast – Out now!

A Podcast by Food4Transformation

In a world facing crises – from pandemics, armed conflicts, and climate change – how do we ensure everyone has enough food within planetary boundaries? A new podcast by Food4Transformation discover solutions talking to government officials, scientists, NGOs and farmers around the world.

What the Middle East conflict means for the children in Gaza

An Interview by Jan Rübel

The Gaza Strip depends heavily on humanitarian aid, more than ever with the current war. Gaza population is very young: Half of them are children. What is their situation on the ground? Questions for Lucia Elmi, Unicef Special Representative to the State of Palestine.

Agricultural Financing – from a broader Perspective

A Contribution by GIZ

In Sub-Saharan Africa, not all financial institutions (FIs) have access to knowledge about how to implement processes to enhance rural financial inclusion. The pan-African Community of Practice (CoP) plays a pivotal role in supporting these institutions along this transformative journey.

Agriculture is more than Culture or Tradition

A Contribution by Simeon Kambalame

How can agriculture engage more young people in rural areas? Advocacy and education campaigns can play an important role here. Simeon Kambalame, Timveni Child and Youth Media Organisation, has launched such a campaign in Malawi.

Gender Justice – a Precondition for Resilience

A contribution by IFPRI

Women and girls in poorer countries are affected in particular ways by the multiple crises the world is currently facing. Uncovering the linkages between gender, resilience and food security, experts from International Food Policy Research Institute (IFPRI) look at ways to support women and girls’ capacity to respond to crises.

Where can international cooperation in Gaza come in, Ms. Asseburg?

An Interview by Jan Rübel

The armed conflict between Israeli forces and the Hamas is escalating. What does this mean for a Gaza, region that was already heavily dependent on external aid? Questions for Dr. Muriel Asseburg, Senior Fellow at the German Institute for International and Security Affairs (SWP) in Berlin.

Podcast: Fighting world hunger together

Chancellor Angela Merkel in the Podcast of the Federal Government

At the start of World Food Week around World Food Day on 16 October, Chancellor Angela Merkel stressed that the fight against global hunger will only be successful with international responsibility and solidarity (german only).

Nature conservation around the world

A Contribution by WWF

From measures to promote biodiversity in Germany to more sustainable cocoa cultivation methods in Ecuador: WWF works at many different levels. At the Green Week, it will be demonstrated just how multifaceted nature conservation work is and what role each individual's decision plays.

Together for food security in Zambia

A Contribution by Claudia Jordan (GIZ)

The Agriculture and Food Security Cluster of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in Zambia shows how synergies among different projects and partner organisations can help people to eat healthier, diversified food. A delegation of the Bonn based Division of Agriculture and Rural Development learned this in a field visit in the Eastern Province of the Southern African country.

Felix Phiri and two decades of Agriculture

A Conversation with Felix Phiri

Felix Phiri has been Head of the Department of Nutrition, HIV and AIDS at the Ministry of Health in Malawi for almost 20 years. A conversation about constants and change.

A framework for sustainable and fair agriculture and food systems

A Contribution by Gideon Tups

The guiding orientation framework developed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) summarizes the requirements for the transformation of agriculture and food systems – and identifies principles and approaches for transformative change.

A Call to Action against Desertification

A contribution by GIZ

Every second, worldwide, we lose valuable and healthy soil with the size of four football fields. This was only one of the many facts being presented to a wide audience in Bonn and worldwide via livestream at the World Desertification and Drought Day on 17th June 2024. This was the 30th anniversary of the United Nations Convention on Combatting Desertification (UNCCD), which was celebrated at the Bundeskunsthalle in Bonn.

The untapped potential of protein diversification

A Contribution by Ivo Rzegotta

Diversifying our protein supply to include plant-based foods and cultivated meat can be a game-changer for climate mitigation and climate adaptation, especially in the countries of the Global South. However, a great deal of research is still required to capitalise on this potential. And political support, as Ivo Rzegotta, Good Food Institute, demonstrates.

Climate Resilience in the Apple Value Chain

A Contribution by Puneet Bansal

In Himachal Pradesh, India, natural disasters are becoming more frequent and climatic conditions are changing – with negative consequences for apple production and farmers' livelihoods. Holistic and multidimensional innovation bundles are required for the entire value chain in order to make the food system more resilient in the future.

Cultivating tomorrow

A Contribution by GIZ

Africa’s largest youth generation has the potential to transform agriculture sustainably. Young entrepreneurs like Febelsa in Mozambique are building agricultural businesses that fuel local growth.

Coordination as a Game-Changer

A Contribution by Emmanuel Atamba & Larissa Stiem-Bhatia

Drawing on dialogues with experts in Kenya, TMG Research releases its latest policy brief highlighting the critical need to strengthen coordination mechanisms in food systems governance. Emmanuel Atamba and Larissa Stiem-Bhatia from TMG Research summarize the results.

"The virus does not need visa"

Interview by Dr. Ahmed Ouma (CDC)

Countries across Africa coordinate their efforts in the fight against corona by the Centre for Disease Control (CDC) of the African Union in Addis Abeba. Until now, the curve of new infections has been successfully flattened – why? Dr. Ahmed Ouma, Deputy Director, explains the work of CDC in an interview with Tilman Wörtz.

“We have to prepare for the unexpected”

Interview with Dr Maria Flachsbarth (BMZ)

In August, Germany’s development ministry set up a division concentrating on One Health topics. Parliamentary State Secretary Maria Flachsbarth on knowledge gaps at the human-animal-environmental interface, the link between One Health and food security, and lessons learnt from previous pandemics.

Revolutionising Humanitarian Aid

A contribution by Ralf Südhoff

Financial innovations can prevent a crisis turning into a catastrophe. The livelihoods of people in affected areas may well depend on intervention before a crisis – and on risk funds.

Doing More With Less

A contribution by Jochen Moninger

Innovation is the only way to end hunger worldwide by the deadline we have set ourselves. The secret lies in networking and sharing ideas – and several initiatives are already leading by example.

A new U.S. Africa policy?

An article by Jan Rübel

After four years of Donald Trump in the White House, it is time to take stock: What policies did the Republican government pursue in African regions? And what will change in favor of Joe Biden after the election decision? Here is an evaluation.

Innovations for a secure food supply

A contribution by German Agribusiness Alliance

The COVID 19 pandemic is hitting developing and emerging countries and their poorest populations particularly hard. It is important to take countermeasures at an early stage. Companies in the German agricultural sector want to make their contribution to ensuring the availability of urgently needed operating resources.

Good health is impossible without healthy food

A contribution by Heino von Meyer

Corona makes it even more difficult to achieve a world without hunger by 2030. So that this perspective does not get out of sight, Germany must play a stronger role internationally - a summary of the Strategic Advisory Group of SEWOH.

Can this end world hunger?

A report by Stig Tanzmann

Time to dig deeper: We can only benefit from technical progress if we have a solid legal framework for everybody. But so far, none is in sight - in many countries. Instead, international corporations grow ever more powerful.

"Without peace, there will be no development"

Interview with Karina Mroß (DIE)

What contribution does development cooperation make to conflict prevention? What can it do for sustainable peace? Political scientist Karina Mroß talks to Raphael Thelen about post-conflict societies and their chances for peaceful development.

The 'Grey Gold'

A contribution by Maria Schmidt (GIZ)

The Cashew Council is the first international organisation for a raw material stemming from Africa. The industry promises to make progress in processing and refining cashew nuts - and answers to climate change

Small Farms, big money

A contribution by Agnes Kalibata

Agnes Kalibata, AGRA president since 2014 and former minister of agriculture and wildlife in Rwanda, is convinced that Africa's economy will only grow sustainably if small-scale agriculture is also seen as an opportunity.

How can the private sector prevent food loss and waste?

An interview with David Brand (GIZ)

From a circular food system in Rwanda to functioning cooled transports in Kenya: The lab of tomorrow addresses development challenges such as preventing food loss and waste

From lost products to safe food - Innovations from Zambia

A contribution by GIZ

In Zambia, innovative approaches are used to address the problem of post-harvest losses in the groundnut value chain. GIZ's Rapid Loss Appraisal Tool (RLAT) can help to develop more such approaches.

The Future of Development Politics: Voices from the Parliamentary Groups

A Contribution by Journalist Jan Rübel

Representatives of the six parliamentary groups offer their views on the future of German development cooperation.

How to Combat Hunger in Times of Climate Crisis?

An Interview with Martin Frick (WFP)

The climate crisis fuels world hunger. What needs to change in the global fight against hunger, and which role plays humanitarian aid in international development cooperation?

ICTforAg 2022: Conference

An Initiative by GIZ Fond i4Ag

In March 2022, the virtual conference ICTforAg summons leading actors in the agrartechnology and food sector from low- and middle-income countries to exchange ideas advancing resilience, nutrition and agriculture-led growth.

Cooperation and Effective Incentives for Sustainable Land Use

A Contribution by GIZ

The second GFFA expert panel highlights the need for governance action to reverse global trends of land degradation.

Soil Restoration Starts with the People

A Contribution by TMG Think Tank for Sustainability

Highlighting how secure tenure rights are key to achieving land degradation neutrality and soil restoration targets..

Together towards Sustainable Development: Private Sector Cooperation

A Multimedia-Toolbox by GIZ

Achieving the Sustainable Development Goals through responsible investments in the agri-food sector of emerging countries.

World Soil Conference ends with resolutions on drought management and land restoration

A contribution by GIZ

At the UNCCD COP15, the nearly 200 Parties met in Abidjan, Côte d'Ivoire. A key goal is to halt the loss of fertile soils by 2030.

The fight against illegal fishing

A Report

The oceans are important for our food supply, but they are overfished. To halt this trend the global community is now taking action against illegal fishing. Journalist Jan Rübel spoke with Francesco Marí, a specialist for world food, agricultural trade and maritime policy at "Brot für die Welt," and others.

Nutrition is not just a women’s issue

A contribution by GIZ

When women have control over the resources of a household and manage the income, it usually leads to a more balanced and healthier diet for the family. But often the decision-making power lies with the men. How can this gender inequality be addressed? The GIZ global project Food Security and Resilience provides insights into project work on gender-transformative approaches finances by the Federal Ministry for Economic Cooperation and Development (BMZ).

Partners for change - Network meeting on transforming agricultural and food systems

A Contribution by the Federal Ministry for Economic Cooperation and Development

At the network meeting "Partners for change - Transformation to a food secure, resilient and sustainable future", almost 250 participants from over 20 countries came together to exchange experiences and ideas on the transformation of agricultural and food systems. The final product, joint recommendations to transform agricultural and food systems, can now be read online.

Just change starts with listening

A Contribution by Jan Rübel

Halfway through the 2030 Agenda, the BMZ invited participants to a network meeting entitled "Partners for change - Transformation to a food secure, resilient and sustainable future". Experts from around the world developed recommendations in a consultation process and then consolidated them in Berlin. A site visit.

The UNFSS Stocktaking – shadow and a little light

A Contribution by Harry Hoffmann (TMG) & Nathalie Demel (WHH)

At the halfway mark of the 2030 Agenda and two years after the UN Food System Summit 2021, a stocktaking moment was held in Rome to analyze the progress of countries on the commitments to action in transforming food systems. Dr Harry Hoffmann, TMG Think Tank, and Nathalie Demel, Welthungerhilfe, were on site and take stock as well.

The common thread is the importance of collaboration

A contribution by Scaling Up Nutrition Movement

It takes the joint efforts of diverse actors to achieve a transformative impact on the global food system. Barbara Rehbinder, Scaling Up Nutrition Movement (SUN), discusses four people-centred principles to get closer to this goal.

Rethinking funding

By Anna Sophia Rainer

Peasant farmers tend to fail due to bank credit limits. But investment could help them generate a sustainable income. This has given rise to an intense discussion about potential digital solutions.

Support for sustainable start-ups

Companies in Africa that need financing between $20,000 and $200,000 find relatively few investors, as this sector is too large for microcredit and too small for institutional investors. This creates a "gap in the middle" where companies have limited options. A project of the World Resource Institute provides a remedy with the Landaccelerator 2020.

A World Resources Institute project

Video: 4 Questions to Claudia Makdristo

A video clip by Seedstars

Startups are booming in African agriculture. What are the current trend and challenges – and can other regions benefit from innovative approaches? A Video-Interview with Claudia Makadristo, Regional Manager of Seedstars

The digitised farmyard

An interactive graphic Jan Rübel

Lots of apps are entering the market, but what really makes sense? For African agriculture, some of it seems like a gimmick, some like a real step forward. So this is what a smallholder farm in Africa could look like today - with the help of smartphones, internet and electricity.

Africa's digital disruption

Graphics

What Africa is experiencing in the course of digitisation is a disruption. Here three steps are taken in one, there you remain. In any case, the changes are enormous and bring some surprises. A graphic walk.

Africa's face of agriculture is female

A contribution by Beatrice Gakuba (AWAN-AFRIKA)

Africa has a huge opportunity to make agriculture its economic driver. However, the potential for this is far from being made exhaustive use of, one reason being that women face considerable difficulties in their economic activities. The organisation AWAN Afrika seeks to change this state of affairs.

Not waiting for a savior

An article by Lidet Tadesse

While Africa is the least affected region by Covid-19 so far, the number of confirmed cases and deaths on the continent is quickly rising. Despite the challenges many African countries continue to face, the African response to the coronavirus pandemic displays innovation and ingenuity.

“They said: You can do it”

A contribution by Bread for the World

As President of the IABM cooperative in Muhanga, Alphonsine Mukankusi is not simply focused on the figures. She has learned how to deal with people and how to take on responsibility. At the same time, her work helps her to come to terms with the past

Read more “They said: You can do it”

Investing in Healthy Soils: Curse or Blessing?

A Contribution by WWF

How investing in healthy soils provides incentives for more sustainable agriculture even as it demonstrates the need for far reaching changes in the agrisector.

Successful Blueprints for African Agriculture

A Contribution by GIZ

At the 8th German-African Agribusiness Forum (GAAF) representatives from business and politics discussed successful investment models to improve living conditions in Africa.

"Human capital will play a pivotal role in the transformation of African economies"

A contribution by Ben Leyka

The potential the African food sector holds is still far too strongly associated with the continent’s natural resources, Ben Leyka maintains. He seeks to change this with the African Agri Council.

CompensACTION aims to reward farmers for climate performance

A Contribution of the Initiative

The CompensACTION Initiative for food security and a healthy planet, launched by the German Federal Ministry for Economic Cooperation and Development (BMZ) in 2022, is gaining momentum. It aims to financially compensate smallholder farmers for their contribution to preserving ecosystems. Initial successes have been achieved in Ethiopia, Lesotho and Brazil.

Against all Odds

A Contribution by Claudia Huber

Rose Okello is a Matoke farmer and single mother living in a village near Mbarara, a town in southern Uganda. To ensure that she can pay for her family's food, her children's school fees and other expenses on time, Rose uses various financial services. Her story portrays hurdles but also hope for women in agribusiness.

Innovative donor approaches and sustainable finance – A Review of UNFSS+2

By Global Donor Platform for Rural Development (GDPRD)

Highlights from the side event:

In summary: Where do we stand and what’s next?

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