7 Resilience & Inclusion: Recommendations
To encourage mobilization of private sector investment for food security agendas, governments should deploy mechanisms to:
7.1 Recognize that, although during the Covid-19 pandemic they stepped up to subsidize lending rates, finding finance was difficult. This is in spite of the sector benefiting from broader liquidity measures compared to the banking sector, and also other support, such as delaying taxes.
7.2 Recognize that deliberate support from financing institutions, including various fiscal stimulus packages from government, would facilitate the survival of large numbers of SMEs during shocks such as the Covid-19 pandemic.
7.3 Ensure trade and agricultural policy frameworks and sector developments provide financing and incentives where the pure commercial return are unlikely [given the evidence of loss-making in many large-scale, smallholder sourcing models].
7.4 Ensure any increased concessional financing is used appropriately for maximum impact and additionality without being overly burdensome to implement for private investors.
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Impact of Covid-19 on agribusinesses for investors [63 pages] and its executive summary [8 pages] draw out immediate lessons from the pandemic and also future opportunities to improve business resilience in the face of systemic threats that reduce transport and access to markets.
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examines the role carbon finance could play in the transition of smallholder agriculture to a more sustainable, productive and resilient future.
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To support moves towards greater nutritional and food security and more resilient food systems governments should:
7.5 Encourage the uptake of alternative fertilizer products at smallholder farmer levels by ensuring that extension services are trained in the benefits of the products and can support their introduction into farming systems in the most effective manner over the long term
7.6 facilitate local production of green ammonia close to the main agricultural production areas
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Updated November 2023
Summary of recommendations for governments and regulatory agencies