A new report published by ClimateShot Investor Coalition (CLIC) member Shell Foundation explores how to effectively design and implement guarantees to close the agriculture financing gap in emerging markets. Supported by the Foreign, Commonwealth and Development Office, which funds the Lab’s sustainable agriculture and food systems stream, the report explores how these ODA-eligible instruments can support lending to smallholder farmers across Africa and Asia. Learn more about how guarantees can mobilize greater capital and open new markets by reducing the risks for investors and lenders:
At #ShellFoundation, we are committed to raising incomes while lowering emissions for millions of smallholder farmers across #Africa and #Asia. Our latest research report, conducted by Open Capital, with funding from the UK’s Foreign, Commonwealth and Development Office - Research, Science and Innovation explores how #guarantees can attract investors to fill financing gaps in the agriculture sector in emerging markets. By reducing the risk for investors and lenders, guarantees can bring in new capital and open new markets. The research report highlights the important role of ecosystem players and provides key recommendations for effective design and implementation of guarantees. With guarantees now ODA-eligible, more donors are expected to participate in issuing and funding guarantees, which should unlock critical investment for smallholder farmers across Sub-Saharan Africa. Furthermore, the report showcases real-life case studies from African Development Bank Group, Aceli Africa, Rabo Foundation, GuarantCo, and Foreign, Commonwealth and Development Office, among others, as well as actionable recommendations to enhance the effectiveness of guarantees. Discover how guarantees can close the gap between perceived and actual risk of agri-lending in emerging markets: https://lnkd.in/ecsWbrpN #EnergyAccess #EnergyTransition #Research #ImpactInvesting #AgriFinance #Farming #Finance #Agriculture