The European Alliance on Agricultural knowledge for Development

Maximizing Finance for Development in Agricultural Value Chains

24 April 2018“Future of Food : Maximizing Finance for Development in Agricultural Value Chains”

“Townsend, Robert; Ronchi, Loraine; Brett, Chris; Moses, Gene. 2018. Future of Food : Maximizing Finance for Development in Agricultural Value Chains. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/29686 License: CC BY 3.0 IGO.” 44 pages

This report provides details on maximizing finance for development in agricultural value chains.

It highlights financing gaps, identifies a range of potential funding sources, and suggests possible actions to help crowd-in more private investment, while optimizing the use of public resources.

The recommended actions are aligned with the aim to address the market failures that lead to inadequate levels of privately provided goods and services to achieve global development goals. Implementation of MFD in agricultural value chains will require an approach to diagnostics that is more oriented to the private sector, as well as structured, inclusive public-private dialogue to help inform the design of a robust reform and investment program.

Main Messages:

  • Current levels of investment in agricultural value chains are insufficient to achieve key development goals including ending poverty and hunger and boosting shared prosperity through more and better jobs.
  • Crowding-in private investment in the agriculture sector can help achieve development goals and optimize the use of scarce public resources
  • Sources of finance for private sector investments in agricultural value chains are expanding. Sources include own-savings, local and international banks, value chains actors, impact investors, development financing institutions, private sector foundations, and agricultural investment funds.
  • Factors that can help maximize finance for agricultural development include: Improving the enabling environment for the private sector, promoting responsible investment, improving the policy and regulatory environment; using public financing to improve private incentives and to reduce transaction costs and risks—including through blended finance.
  • There is still a critical need for public resources to finance essential public goods and services such as human capital, agricultural research, and complementary public infrastructure.
Related:
21 April 2018. World Bank Group Headquarters. The World Bank Group’s Maximizing Finance for Development (MFD) approach, which leverages private sector resources in fiscally, environmentally, and socially sustainable ways, can be a powerful engine for transforming the global food system into an engine of sustainable and inclusive growth. 
The World Bank Group brought together a diverse panel of speakers from the development, government, and business worlds as they explore MFD in the agriculture sector to discuss opportunities to scale-up investments and innovation.
Speakers:

President, Alliance for a Green Revolution in Africa (AGRA)

Chief Strategy & External Affairs Officer, ABInBEV

Member of the Executive Committee, ECOM Agroindustrial

Minister of Agriculture and Rural Development, Côte d’Ivoire

Vice President, Economics and Private Sector Development, IFC

International Broadcaster and Chair, Royal African Society


Source: PAEPARD FEED

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