The Good Food Finance Network is developing a new financing mechanism – the Good Food Finance Facility – to expand finance into sustainable and equitable food systems.
The Facility aims to:
- Facilitate co-investments and bridge funds, supported by the Innovative Collaborative Funding Model,
- Develop new financial instruments, and
- Leverage standards for mutual accountability through a Good Food Investing Framework.
Context
GFFN’s working group on Public Finance has researched the true cost of existing food production practices, dietary choices, and food wastage; aimed towards finding innovative ways to fund the ‘Good Food Transformation’. For example, this blog demonstrates the importance of such a transition, showing that current agricultural practices, public policies, and diets are projected to have a several-trillion-dollar impact globally and it risks making countries sick and impoverished.
To address these concerns effectively and efficiently, the Good Food Finance Facility proposes the following funding options for finance ministries across the globe that do not require a large capital outlay, preserve nature, de-risk investing in good food transformation, and mitigate the fiscal risk of doing nothing outlined:
- An innovative collaborative funding model (ICFM) as an investment case for the good food transformation that goes beyond the existing blended finance solution by bringing a multitude of players and innovation together to foster good food finance optimizing investment cost & risk sharing with climate & soil friendly best practices fostering productivity.
- Reallocation of public expenditure to reduce poverty and make nutritious food affordable and accessible.
ICFM provides a strategic framework for implementing the 6th financial imperative action point, “use catalytic capital to de-risk investments in innovative sustainable business models” in the ‘Food Finance Architecture: Financing a Healthy, Equitable and Sustainable Food System’. It provides a roadmap for finance ministries to catalyze good food transformation through partnerships. The ICFM:
- Convenes financial, non-financial, public, and private sector stakeholders to collaborate on systems change.
- Delineates the assets and value each brings, whether expertise, technology, financing instruments (such as concessional and catalytic finance), or sustainable infrastructure.
- Unlocks blended financing, asset monetization, and other innovative tools to fund the transition.
- Distributes risks and returns equitably across partners.
- Generates social, environmental, and economic benefits for all.
The ICFM provides a way forward for establishing an ecosystem aligning the interests of stakeholders and reducing investors’ and lenders’ risk for funding the good food system transition. It is an integral part of the Good Food Finance Facility.
ICFM in Practice: Collaboration for Sustainable Agriculture
Agaciro Development Fund and Hinga Wunguke Cultivating New Frontiers in Agriculture (CNFA) have officially inked a Memorandum of Understanding (MOU) for co-investing in Sustainable Agriculture. This collaboration stands out as an adoption of the Innovative Collaborative Funding Model as the funding mechanism for de-risking investments in the pivotal sectors of food and agriculture in Rwanda. The ICFM leverages existing assets and technical expertise to reduce food waste, carbon emissions, biodiversity losses, and prevent environmental damages. It’s a comprehensive solution to the challenges facing our food system, fostering collaboration and innovation.
NEWS
Agaciro Development Fund, Hinga Wunguke Partner to Strengthen Food Systems, Promote Agricultural Markets
Key Benefits across the food system value chain:
- Farmers: Gain resources to adopt regenerative practices, enhance yields, and significantly improve their income.
- Citizens: Access affordable nutrition, contributing to improved public health.
- Businesses: Profit from the growing demand for sustainable food, addressing issues like obesity and malnutrition.
- Investors: Earn returns while actively contributing to positive change in the food system.
- Donors: Have the opportunity to see their donations repaid as the business generates positive net cash flows.
- Governments: Strengthen fiscal positions through savings on healthcare and climate costs, providing existing assets as equity contributions instead of the initial capital outlay.
The Innovative Collaborative Funding Model: a role for each actor
Good Food Finance Network 