Addressing Agriculture Market Dysfunctions through Blended Finance with a Gender Lens
Summary
This report delves into the application of blended finance strategies combined with a gender lens to tackle market dysfunctions in the agricultural sector in Southeast Asia. Focusing on women’s small and medium enterprises (SMEs), it outlines how gender-focused blended finance models can drive substantial economic and social benefits by catalyzing private investments in women-led agribusinesses. The report discusses the implementation of various financing structures, such as feasibility grants, first-loss provisions, and side-car syndicates, which aim to de-risk investments and attract private capital. It also highlights successful case studies where blended finance has spurred growth in agribusinesses, improving productivity and market access while enhancing gender equality. By integrating gender mandates into development programming, these financial interventions not only address immediate market gaps but also contribute to broader goals of poverty reduction, hunger elimination, and gender equality.
Highlights
- Blended finance models have effectively mobilized private sector capital to address the financing gap in women-led agribusinesses, crucial for economic growth and gender equality in Southeast Asia.
- Innovative financing structures have facilitated over 62 investments in women’s SMEs by the end of 2021, demonstrating significant private sector engagement.
- The report underscores the importance of adopting gender-focused mandates in investment strategies to ensure inclusive economic growth and the empowerment of women in the agricultural sector.
- Case studies within the report illustrate the positive impact of these investments on the agriculture sector’s productivity, efficiency, and competitiveness.
- The blending of concessional and private funds has proven essential in mitigating risks and leveraging additional capital for sustainable development in agriculture.
