Innovative finance opportunities for inclusive agribusiness

  • 25th April 2019
  • by secretary

This report (PDF) by iBAN and BoP Innovation Center offers guidance and describes in depth 8 different financing instruments with specific example cases of its application to inclusive agribusiness.

Agribusiness have a huge business opportunity and a chance to contribute to the SDGs. Financing opportunities for inclusive agribusiness are growing.

The financing instruments are: 
  1. Public-private partnerships, a long-term contractually based mutual cooperation between public and private sector aimed at the provision of public services. 
  2. Project finance, which mainly targets large-scale and long-term projects and it protects the undertaking company in case of failure. 
  3. Blended finance, a mechanism that uses public and philanthropic funds to leverage private capital in order to meet the financing needs of an inclusive business. 
  4. Result-based financing is used by developing country governments, or states or donor agencies, in cooperation with the private sector, to incentivise the provision of goods or services to create or expand markets, or to stimulate innovation. 
  5. Thematic bonds, a sustainable investment option that is beginning to attract a new generation of investors. 
  6. Agricutultural value-chain finance is financing provided to an actors in the chain by a financing source outside of the value chain or by another actor in the value chain. 
  7. Crowdfunding, brings together multiple private investors to fund a project for a specific cause, usually start-ups with the desired impact as main reason why investors choose one proejct over another. 
  8. Impact investment funds, curate a selection of carefully vetted businesses, which seek funding towards an impact area or around a regional focus.
A webinar about the report is available, including its slideshow.