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Private Sector Window

Private Sector Solutions for Helping Small Farmers

Our Approach

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.

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 blended concessional funds – typically from development partners – alongside commercial funding.

Our Results

To date, the Private Sector Window has supported 61 agribusiness investment projects in 27 countries, deploying approximately $311 million of funds. Our advisory projects—which help companies improve their productivity and standards—include 67 projects across 27 countries for over $21 million. These projects have enabled GAFSP to reach over one million smallholder farmers across the world, over 152,00 of whom are women. 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

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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Impact Story

Blended Finance in a Bhutanese Nutshell

Promoting hazelnut production by smallholders across Bhutan

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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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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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Impact Story

A Recipe for Success

Kenya's tea farmers taste the benefits of hydropower

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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 Shah
Head, GAFSP Private Sector Window
nshah1@ifc.org
Washington, DC
Tel: 202 473 3743