According to the World Bank, growth in the agriculture sector is two to three times more effective at reducing poverty than equivalent growth in other sectors. However, agriculture remains largely under-financed, with actors across the value chain chronically lacking the funds they need, and an approximately $115bn USD gap for the countries in the Feed the Future initiative.
Through the Primer on Catalyzing Agricultural Finance, USAID and Dalberg have come together to outline the tools that USAID can use to address agricultural finance gaps, with the ultimate aim of tackling market failures and mobilizing private sector finance.
A pragmatic approach
Fundamentally, the Primer on Catalyzing Agricultural Finance is designed to help demystify agricultural finance, and to help USAID staff and other development practitioners understand how they can use different tools to include financing into agricultural development programming.
In the Primer, USAID and Dalberg outline a portfolio approach to using all of the tools at USAID’s disposal. The content is tailored for those who may not yet be an expert in the sector, and includes clear reasoning about just how effective agricultural financing can be. It also outlines the most accessible and available tools for creating positive impact – most of which are well-tested and have a good track record.