Session 3 – High-Level Session on Sustainable Finance: Making Donor Funding More Catalytic
The estimated additional public investment needed from donors and recipient countries to achieve SDG2 by 2030 ranges between US$33 and 50 billion per year. The research community agrees(1) that the donor share of this total is about additional US$14 billion per year, or roughly double the current level of spending on agriculture and food security, excluding emergency food assistance.
Despite significant efforts by donors and development banks to fill the investment gap, there is now consensus that development finance alone is insufficient. The investment gap will not be filled by the public sector exclusively. More is needed to make other sources of finance work, including commercial loans from multilateral development banks, and blended finance from both public and private sectors.
Donors are well aware of this challenge and are seeking financial additionality through blending their finance with commercial lenders. Defined by the Organisation for Economic Co-operation and Development (OECD) as “the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries”, blended finance offers an untapped opportunity to fill the investment gap.
|9:30 – 9:45
||Welcome and opening
Moderator: Carin Smaller, Co-Founder and Executive Director, Shamba Centre for Food & Climate, Co-Founder of Hesat2030
|9:45 – 10:00
Paul Clements-Hunt, Founder of the Blended Capital Group, former Head of the United Nations Environment Programme (UNEP) Finance Initiative (FI)
|10:00 – 10:15
||Setting the scene: An overview of the findings from the GDPRD enquiry
Oshani Perera, Co-founder and Director of Programmes, Shamba Centre for Food & Climate
|10:15 – 10:35
||High-Level reaction to the findings
Andrea Zinn, Director, Council on Smallholder Agricultural Finance (CSAF) and Senior Manager Aceli Americas, Aceli Africa
|10:35 – 10:50
|10:50 – 12:20
||Recommendations for the way forward and Panel Discussion
Peter Beez, Program Manager and Regional Thematic Advisor, Swiss Agency for Development and Cooperation (SDC)
Cecile Biccari, Managing Partner, Contrast Capital
Fariza Chalal, Investment Officer, Manufacturing, Agribusiness and Services, Proparco
Hamid Hamirani, Senior Advisor, Food Systems for the Future
Agnes Johan, Head of Blended Finance, Rabo Partnerships
Jean-Marc Kilolo, Economist, Innovative Finance & Capital Markets, United Nations Economic Commission for Africa (ECA)
Iris Krebber, Head of Agriculture, Food Security and Land, Foreign, Commonwealth & Development Office (FCDO)
Songbae Lee, Agricultural Finance Lead, USAID Bureau for Resilience, Environment, and Food Security
||End of session
The Shamba Centre for Food & Climate conducted an enquiry on sustainable finance in agri-food systems for the members of the Global Donor Platform for Rural Development (GDPRD) to explore how donors and development banks are working to make aid more catalytic. Interviews took place under Chatham House rules with over 50 donors, philanthropic foundations, development banks, public and blended funds, fund managers, investment advisors, international organisations, NGOs, investor networks, sustainable finance networks, academic and experts on sustainable finance.
This session will present the results of the enquiry and will address the following topics:
How can ODA grants and loans be used to mobilize commercial finance for agri-food SMEs in developing countries?
How can development finance institutions be reformed to allow for more flexibility and allow them to take on more risks?
How can blended finance in the agriculture sector be scaled up?
How can data on the financial performance of agri-food SMEs loans by donors be improved?
At the end of the session, participants are expected to:
Understand the actions that donors and development banks are currently taking to mobilize private sector investment.
Assess what is needed to scale blended finance to achieve SDG 2.
Debate the four key recommendations on how the GDPRD and its members can make donor funding more catalytic.
(1) Laborde, D., Murphy, S., Parent, M., Porciello, J. and Smaller, C. 2020. Ceres2030: Sustainable Solutions to End Hunger – Summary Report. International Food Policy Research Institute (IFPRI), International Institute for Sustainable Development (IISD), and Cornell University. Available from: https://ceres2030.iisd.org/wp-content/uploads/2021/03/ceres2030_en-summary-report.pdf.