The Private Sector Window (PrSW) is implemented and managed by International Finance Corporation (IFC) to provide innovative financing aimed at increasing the commercial potential of small and medium-sized agri-businesses and farmers by connecting them with local, national, and global value chains. It focuses on the following areas:
Increasing productivity: By connecting smallholders with credit, it enables them to expand and leverage economies of scale to increase agricultural yield.
Supporting innovation: The PrSW aims to support companies that develop technology and processes that increase productivity and lower use of water resources and inputs such as fertilizers.
Reducing risks: The PrSW will launch financial products such as first loss cover and weather insurance to manage these risks. It will also invest in micro, small, and medium-sized enterprises (MSMEs) funds to increase their ability to invest in MSMEs in riskier sectors that cannot attract investment capital through traditional channels.
The GAFSP Private Sector Window will add value to current multilateral efforts in agriculture and food security through its focus on smallholder farmers and MSMEs. Also, it will crowd-in private sector investment funding by supporting projects with a different risk/return profile. The Private Sector Window will source proposals from private sector firms during open, competitive Calls for Proposals for financing for private sponsors and MDBs and from the IFC's own pipeline.
Types of Financing