Presentation by Tony Simons from ICRAF at the Business Advantage event on the sidelines of COP23. More information about the event series: https://bit.ly/AgAdvantage

2. Engaging with the Private Sector
Tony Simons, ICRAF, Kenya
Agriculture Advantage, 13 Nov 2017
UNFCCC COP23, Bonn
Public-Private Partnerships, Impact Investments and Blended Finance
– increased scope for scaling up climate actions

3. Public Goods
Private Bads
Private Goods
Public Bads
We need to be smarter at linking
public goods with private interests

4. ODA is not Development ……
$3 in remittances
$6 in FDI
$24 in domestic private sector spend
$35 in developing country Government spending
For every $1 in ODA, there is:
ODA may remain largest revenue stream for some but we
need to better connect it to other finance sources

5. • Access to information: greater understanding of the issues
(allowed in the business conversations)
• Access to expertise and networks: complementary skills to our own
• Fitness for purpose: creating more appropriate products and services
• Cost-sharing/reduction: avoiding duplication, leveraging joint investments
• New paradigms/models: developing novel approaches for complex challenges
• Upskilling staff: enhancing competencies and skills in our staff
• Accelerating impact: scaling up and out
• Reflected glory: partnering with credible businesses
Benefits of engaging with the Private Sector

6. Risks of the Private Sector?
- Reputation risks of partnering with a questionable company
- Uncertainty of the company motives
- Conflicts of interest
- Upfront losses for longer term pay-off (may not arrive)
- Suspicions from other partners
- Bankruptcy of company (non-delivery, risks to farmers)

8. Tropical Landscape Finance Facility (Indonesia)
• Launched 26 October 2016
• $1 billion Loan Fund coupled with matching Grant Fund
• Main investors BNP Paribas, USA, ADM
• Domiciled in Hong Kong (ADM Capital)
• TLFF Secretariat in Jakarta (ICRAF/UNEP)
• Eligibility: Renewable Energy & Landscape Transformations
• Evidence-based investments, shared risks, technical support

9. Smallholder
Farmers
Credit
Equity
Govt
SMLE,
Coop
Local
NGO
INGO,
IARC
Micro-
finance
premium, levy, tax,
revolving fund
Converters:
Money into 5 Capitals
Offtakers:
Harvest
dividend
of 5 capitals
Buyers
Aggregators
Processors
Society
Repayers:
FARMERS
Technical, social, admin, policy, financial, input support
Performance based, conditional incentives
Goods
&
Services
(5 Capitals)
Transformers:
5 Capitals as inputs
Produce:
5 Capitals Value-added
Various Finance Blending Options Available
Grants

10. Financing at Landscape ScaleFinancing at Landscape Scale
Grant Financiers
We have so many
viable project ideas …..
but so little finance
Credit Financiers
We have so much ready
finance …..
but so few viable projects

11. Engaging with the Private Sector
Tony Simons, ICRAF, Kenya
Agriculture Advantage, 13 Nov 2017
UNFCCC COP23, Bonn
Public-Private Partnerships, Impact Investments and Blended Finance
– increased scope for scaling up climate actions