Financing Integrated Landscape Investments in Africa

Seth Shames, EcoAgriculture PartnersJune 2, 2014World Agroforestry Centre, Nairobi

Types of Landscape Investments

Potential Sources of ILM Finance

• Increased public investment• Foreign direct investment (FDI)• Impact investment• Payments for Ecosystem Services• Climate Finance• Conditional Loans

Photo: Danie van der Merwe

Challenges for ILM Finance

Enabling investments• Public sector siloes limit integration• Coordination of integrated landscape

initiatives is often underfunded• Market access, infrastructure and agriculture

research barriers• Over-dependence on donor funding

Photo: Anne Wangalachi, CIMMYT

Challenges for ILM FinanceAsset investments• Short time horizons• Mismatch between investment stake and size of

investment opportunities• Investment risk is high• Potential for deleterious agricultural investment

Actions

• Coordinate public sector funds for enabling investments

• Prioritize donor coordination with national government

• Define and enforce basic guidelines on FDI • Develop innovative investment platforms and

mechanisms

Photo: CIMMYT

Springboards for Action

• National policymakers working across sectors• GM continuing to support the development of

integrated financing mechanisms • Agro-industrial investment corridors organizers

leading on investment guidelines • Investment agencies acquiring knowledge and to

screen FDI • The GEF and other donors playing a leading role

in encouraging multi-objective investments

Photo: Eloise Phillips, CIMMYT