Frequently Asked Questions

Why do we need GAFSP?

What does GAFSP finance?

Who is eligible for the public sector window?

Who is eligible under the private sector window?

What is the role of the World Bank in GAFSP?

How does GAFSP relate to the United Nations Rome-based Agencies (FAO, IFAD, and WFP)?  

Who decides which countries are funded under the public sector window?

Who decides which countries are funded under the private sector window?

Can CSOs/research organizations access funds directly from GAFSP?

 

 

Why do we need GAFSP?

GAFSP provides readily available financing to scale-up agricultural and food security assistance on a coordinated basis in response to demonstrated commitment to results by countries. Existing bilateral and multilateral funding cycles typically require several years of advance programming by countries and are not amenable to restructuring already allocated resources and coordinating donor replenishment cycles is difficult. Channeling multiple sources of donor financing through a common mechanism can reduce fragmentation and recipient country transaction costs for aid and improve alignment of country programs.

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What does GAFSP finance?

Depending on the country and regional requests and consistent with the GAFSP Framework Document, GAFSP financing provides for:

1. Raising agricultural activity by supporting:

  • Adoption of high-yielding technologies
  • Technology generation
  • Water management
  • Land rights and land use

2. Linking farmers to markets by supporting:

  • Reduction in transaction costs
  • Value addition
  • Mobilization of rural finance

3. Reducing risk and vulnerability by supporting:

  • Price and weather risk management
  • Strengthening food-related social protection for people
  • Improvement of nutrition of vulnerable groups

4. Improving Non-Farm Rural Livelihoods by supporting:

  • Improvement in the investment climate
  • Promotion of non-farm rural entrepreneurship

5. Technical assistance, institution building, and capacity building by supporting:

  • Sector strategy development, investments, and implementation
  • Enhancing design, monitoring, and evaluation
  • Knowledge development and dissemination

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Who is eligible for the public sector window?

Certain countries are eligible for investment projects and/or technical assistance projects.  Eligible countries are limited to those that are eligible to receive financing from the International Development Association (IDA), and not IBRD (“IDA-only countries”), that are not in non-accrual. 

 

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Who is eligible under the private sector window?

Private firms and financial institutions doing business in eligible countries can apply for loans, credit guarantees or equity investments.  Firms outside of IDA-only countries with a compelling case may be considered for funding in consultation with donors. More information can be found here.

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What is the role of the World Bank in GAFSP? 

The World Bank plays three roles: (1) Trustee (to carry out fiduciary responsibilities as set out in the Trust Fund Administration Agreement), (2) Coordination Unit (a small team to support the GAFSP Steering Committee and Technical Advisory Committee and facilitate communications between the Steering Committee and the other partners of GAFSP), and (3) potential Supervising Entity of GAFSP funded projects, if selected by the Steering Committee.  IFC, the World Bank’s private sector arm, manages the private sector window of GAFSP. Additionally, the World Bank's Development Impact Evaluation Initiative (DIME) has been selected by the Steering Committee to implement in-depth impact evaluations for selected GAFSP Public Sector Window projects.

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How does GAFSP relate to the United Nations Rome-based Agencies (FAO, IFAD, and WFP)? 

The UN Rome-based Agencies (RBAs) – the Food and Agriculture Organization (FAO), International Fund for Agriculture Development (IFAD) and World Food Programme (WFP) are an integral part of GAFSP and play criticals role in both program direction and project supervision and implementation.

 

GAFSP complements and reinforces the RBAs’ objectives, pools resources, and provides additional grant financing to country-led projects that goes beyond their original funding envelope per country. GAFSP’s effective partnership with RBAs leverages resources, knowledge, and expertise for the largest possible impact.  When countries apply for GAFSP funding, they indicate the partner or partners that they would like to work with; more than $150 million of GAFSP funds have been allocated to the RBAs, including $130 million by IFAD. As of December 2016, there were 16 projects supervised by the RBAs: IFAD supervises Public Sector Window investment projects ($123.8 million in Sierra Leone, Togo, Burundi and Lao PDR) while FAO ($10.3 million in Bangladesh, Ethiopia, Gambia, Kenya, Mongolia and Timor-Leste) and WFP ($6 million in LAO PDR) provide technical assistance.

 

The GAFSP Private Sector Window project is also funding the Africa Improved Foods Limited (AIF) Processing Facility in Rwanda, where WFP is using the nutritive bar created by the project. Five pilot projects for a total of $13.2 million in grant funding approved under the innovative Missing Middle Initiative (MMI) are all supervised by the RBAs, ($5 million for two projects in East Senegal and Bangladesh by FAO, $5.2 million for two projects in Mali and the first GAFSP regional project including Rwanda, Tanzania and Uganda by IFAD and $2.6 million for one project in Mali by WFP) and implemented in partnership with producer organizations, smallholder farmers and value chain actors. These partnerships are expected to crowd in private resources and develop market links for sustainability. All three RBAs sit on the GAFSP Steering Committee to help influence program direction. 

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Who decides which countries are funded under the public sector window?

The GAFSP Steering Committee decides on funding allocations. The decision of the Steering Committee is based on the recommendations of the Technical Advisory Committee (TAC). The TAC of GAFSP is an independent panel of experts with a high level of global and regional experience and expertise in agriculture and food security issues.  The TAC provides the due diligence screening of submitted proposals and formulates funding recommendations.  Based on the recommendations, the GAFSP Steering Committee decides on funding.

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Who decides which countries are funded under the private sector window?

The Private Sector Window is always interested in hearing new opportunities. Projects are that meet eligibility requirements will be reviewed by the GAFSP Private Sector Window Secretariat. For more information please contat GAFSPSecretariat@ifc.org.

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Can CSOs/research organizations access funds directly from GAFSP?

Eligible entities for GAFSP public sector funds are limited to IDA countries for investment and/or Technical Assistance projects. Other entities are ineligible for direct GAFSP financing. However, the GAFSP Steering Committee recognizes the importance of participation by relevant stakeholders in the preparation and implementation of projects, and takes this into consideration when making financing decisions and final funding approval. CSOs and private sector actors may have a role as third party implementers or service providers depending on program scope and design of programs in accordance with the internal policies, guidelines, and procedures of the selected Supervising Entity.

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For more information please contact: info@gafspfund.org