Unleashing the Catalytic Power of Donor Financing to Achieve SDG 2

Current development finance is insufficient to fill the public investment gap needed to achieve SDG 2 by 2030. Donors need new ways to bring in commercial financing from development finance institutions (DFIs) and the private sector.

This report presents the findings and recommendations of an enquiry into sustainable finance in agrifood systems conducted by the Global Donor Platform for Rural Development. A series of interviews explored how donors, philanthropic organizations, public funds and blended capital funds can help achieve SDG 2.

It finds that if donors and DFIs take higher risks with their grants and lending, every donor dollar could mobilize four dollars in commercial finance. With aid as a catalyst, agrifood SMEs have more financing, domestic lenders participate and markets deliver affordable borrowing prices.