Impact Investing for Nutrition (II4N)

Impact investing is a practice that combines financial returns with positive social and environmental outcomes, has gained traction in emerging markets in recent years. Agri-food small, and medium-sized enterprises (SMEs) are estimated to grow and process more than half of the food consumed worldwide. They have the potential to drive positive change and transform current food systems.

Why impact investing for nutrition?

Finance can be used to drive better inputs, production, aggregation, trading, processing, and marketing of healthier foods in low- and middle-income countries (LMIC).  Many of the local enterprises delivering foods with potential to affect nutrition outcomes in low-income households operate in difficult markets with weak financial systems, poor infrastructure, and low consumer education. (cont…)  

These enterprises often face tensions between driving their financial profitability and envisaged impact as they scale. Most of these companies need a combination of working capital financing and a longer-term investment in productive assets (such as equipment for processing or fortifying foods) to increase production and improve efficiency.

To help enable more nutritious food supplies by agri-food SMEs, the overarching goal of this project is to unlock impact investments for SMEs so they can produce healthier foods and help improve nutrition in Sub-Saharan Africa. The project aims to unlock a supply of relevant financing which will in turn stimulate the production of more affordable, safe, and nutritious foods, making them accessible to at-risk populations by encouraging greater impact investments in nutrition.