The agriculture sector faces many risks and private investors face trade-offs compared to other sectors with higher returns and less risk. That’s where there’s a need for donor coordination with the private sector.

We need a new way of thinking about blended finance, one that involves more patience when building investable companies and de-risking industries, especially in agriculture.

The goal of the group is to increase transparency, develop benchmarks, and build the evidence that will lead to better decision-making and more effective allocation of scarce donor dollars.

Developing a benchmark to measure the impact of blended finance is very challenging, as each deal comes with different financial and concessional parameters. That is why this group was created.

We are trying to collectively understand and agree on at least a starting point, from which we can move forward. Our promise to our partners is to continue analyzing and testing until the methodology we develop becomes a reference point.