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Private Sector Financing

The GAFSP Private Sector Window uses blended finance* solutions and concessional funding to support projects designed to improve the livelihood of smallholder farmers living in the world’s poorest countries. Investing across the entire food supply chain, from farm inputs to logistics and storage, to processing and financing, the Private Sector Window specializes in early-stage agribusiness projects with a high potential for development impact.

Working alongside the International Finance Corporation (IFC), a member of the World Bank Group, we use blended finance solutions and IFC’s expertise and knowledge to invest in projects that may not attract commercial funding due to perceived high risks in the agricultural sector. GAFSP funding is co-invested alongside IFC funding but the Private Sector Window takes it one step further: addressing market failures by providing affordable funding with less demanding terms. This allows the Private Sector Window to invest in early stage or riskier projects in IDA and fragile and conflict-affected states that hold high potential for development impact and financial sustainability. That means that we can partner with companies who include smallholder farmers as part of their overall value chain, providing access to markets, financing and storage, and increasing production and incomes for those living and working in the world’s lowest income countries.

We know too that it takes more than just finance to achieve sustainable private sector development. That’s why advice and technical support are also a critical part of our work as a comprehensive blended finance solutions provider. Through IFC’s Advisory Services, we help raise capacity building by providing on-the-ground training and advice for businesses and farmers in improving farmer productivity, strengthening standards, reducing risks and mitigating climate change effects.

The Private Sector Window is generously funded by the following government partners: Australia, Canada, Japan, the Netherlands, the United Kingdom, and the United States.

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Changing Lives

Insights into how investments made possible by the GAFSP Private Sector Window help change the lives of farmers worldwide.

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Blended finance is a new tool to crowd in private sector financing that would otherwise not be available to projects with high development impact. One such approach is to blend concessional funds – typically from development partners – alongside commercial funding.

Our Results

To date, the Private Sector Window has supported 81 agribusiness investment projects in 27 countries, deploying approximately $440 million of funds. Our advisory projects—which help companies improve their productivity and standards—include 88 projects across 33 countries for over $44 million. These projects have enabled GAFSP to reach over one million smallholder farmers across the world. They have also enabled IFC to extend its reach into the most fragile markets in the world, demonstrating that blended finance can be a viable model for mobilizing private capital for development priorities.

Our Impact

burkina faso cotton farmer
Impact Story

Better Farming Means Better Lives for Cotton Farmers

Many lives depend on cotton yields in Burkina Faso—one of the World's poorest countries

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bhutan farmer
Impact Story

Blended Finance in a Bhutanese Nutshell

Promoting hazelnut production by smallholders across Bhutan

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child in war-torn yemen
Impact Story

Investing in Nutrition

A lifetime of returns on human capital for children in war-torn Yemen

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Impact Story

Protecting an Ancient Way of Life in the Sahara

Nomadic Pastoralists get new opportunities for income

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child in rwanda
Impact Story

Putting an End to Stunting in Rwanda

A healthy productive life requires adequate nutrition. Yet around the world, millions of people are undernourished and hungry.

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kenya tea farmer
Impact Story

A Recipe for Success

Kenya's tea farmers taste the benefits of hydropower

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Training and a digital payment system are helping co-ops in Côte d’Ivoire become more profitable and sustainable.
Impact story

Cocoa Cooperatives—and their Farmers—Get a Fresh Start

Training and a digital payment system are helping co-ops in Côte d’Ivoire become more profitable and sustainable.

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Training and a digital payment system are helping co-ops in Côte d’Ivoire become more profitable and sustainable.

Work With Us

If you are part of a corporation, foundation, government, multilateral organization, or development institution focused on agriculture, agribusiness, or agri-finance, and would like to learn more about how we can work together to take on the world’s toughest challenges, please contact us.

Contact Us

Mr. Niraj H. Shah
Principal Investment Officer, Program Manager, GAFSP Private Sector Window | tel. 202 473 3743