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FAO Investment Centre Annual Review 2018 FAO Investment Centre Annual Review 2018 Photo credits: (from left to right, top to bottom) Front cover: CCO; CCO; ©FAO/Netige; ©FAO/Alioune Ndiaye; ©A Melody Lee / World Bank (CC BY-NC-SA 2.0); ©FAO Somalia Annual Review 2018 FAO Investment Centre Food and Agriculture Organization of the United Nations Rome, 2019 FAO. 2019. FAO Investment Centre Annual Review 2018. Rome. Licence: CC BY-NC-SA 3.0 IGO. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. © FAO, 2019 Some rights reserved. This work is made available under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO; https://creativecommons.org/licenses/by-nc-sa/3.0/igo/legalcode). Under the terms of this licence, this work may be copied, redistributed and adapted for non-commercial purposes, provided that the work is appropriately cited. In any use of this work, there should be no suggestion that FAO endorses any specific organization, products or services. The use of the FAO logo is not permitted. If the work is adapted, then it must be licensed under the same or equivalent Creative Commons licence. If a translation of this work is created, it must include the following disclaimer along with the required citation: “This translation was not created by the Food and Agriculture Organization of the United Nations (FAO). FAO is not responsible for the content or accuracy of this translation. The original [Language] edition shall be the authoritative edition.” Disputes arising under the licence that cannot be settled amicably will be resolved by mediation and arbitration as described in Article 8 of the licence except as otherwise provided herein. The applicable mediation rules will be the mediation rules of the World Intellectual Property Organization http://www.wipo.int/amc/en/mediation/rules and any arbitration will be conducted in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). Third-party materials. Users wishing to reuse material from this work that is attributed to a third party, such as tables, figures or images, are responsible for determining whether permission is needed for that reuse and for obtaining permission from the copyright holder. The risk of claims resulting from infringement of any third-party-owned component in the work rests solely with the user. Sales, rights and licensing. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. Requests for commercial use should be submitted via: www.fao.org/contact-us/licence-request. Queries regarding rights and licensing should be submitted to: [email protected]. Photo credits: (from left to right, top to bottom) Page 3 (Contents page): CCO; ©Eric Sales/ADB (CC BY-NC-ND 2.0); ©Neil Palmer/CIAT (CC BY-SA 2.0); ©Benny Lin (CC BY-NC 2.0); CCO; CCO; ©AMISOM Photo / Tobin Jones (CC0 1.0); ©Gaganjit Singh (CC BY-NC-ND 2.0); CCO; CCO Art direction and design: Teikna Design Printed and bound in Italy Contents 4 Acronyms 5 Message from FAO Deputy Director-General (Programmes), Mr Daniel Gustafson 7 Message from FAO Investment Centre Director, Mr Mohamed Manssouri 8 Who we are 10 Facts and figures 12 Partnerships to support public investment 18 Partnerships to support private investment 22 Internal collaboration for greater impact 24 Programme and project support for investment 26 Stronger agroforestry cooperatives in Cuba (IFAD) 26 Toward more secure property rights in Bosnia and Herzegovina (World Bank) 28 Toward greener growth in water-stressed China (World Bank) 28 Public-private producer partnerships to increase farmers’ incomes in Benin - PADAAM (IFAD) 30 Water protection and tourism development in Tanzania (World Bank) 30 Sustained country level support to Bangladesh (World Bank, IFAD, GAFSP) 32 Policy support for investment 33 Greening the agrifood sector in Kazakhstan and Kyrgyz Republic (EBRD) 34 The Caribbean’s agricultural transformation (CDB) 34 Breaking down regional trade barriers in Central Africa (World Bank) 36 Capacity development for investment 38 A bigger slice of the export market in Ukraine and Serbia (EBRD) 38 Origin-based labels boost local economies (EBRD) 39 Creating a community of RuralInvest trainers in Niger (World Bank) 40 Investing in knowledge sharing and innovation 42 Responsible private investment in food and agriculture (EBRD, World Bank, FAO) 42 Closing the digital divide in Uruguay and Honduras (IDB) 45 Future perspectives 46 Annexes 46 List of IFI-approved projects financed in 2018 48 List of policy support and analytical studies in 2018 AfDB African Development Bank AP Asia and the Pacific region CABEI Central American Bank for Economic Integration CDB Caribbean Development Bank CEMAC Central African Economic and Monetary Community CIRAD French Agricultural Research Centre for International Development EBRD European Bank for Reconstruction and Development ECA Europe and Central Asia Region EX-ACT Ex-Ante Carbon-balance Tool FAO Food and Agriculture Organization of the United Nations GAFSP Global Agriculture and Food Security Program GCF Green Climate Fund GI Geographical indication ICT Information and communication technology IDB Inter-American Development Bank IFAD International Fund for Agricultural Development IFI International Financing Institution IsDB Islamic Development Bank LAC Latin America and the Caribbean region M&E Monitoring and evaluation MMI Missing Middle Initiative NENA Near East and North Africa region NGO Non-governmental organization ODA Official Development Assistance SDG Sustainable Development Goal SGA Serbian Grain Association SME Small and medium enterprise SSA Sub-Saharan Africa region 4P Public-private producer partnership Message from FAO Deputy Director-General (Programmes), Mr Daniel Gustafson This is a critical time for FAO and the United Nations. We must “focus more on delivery and less on process; more on people and less on bureaucracy,” as highlighted by Mr António Guterres, UN Secretary General. Momentum is high for the 2030 Agenda for Sustainable Development. Several countries have started aligning their policies toward more effective development and their budgets to achieve the Sustainable Development Goals (SDGs). Challenging times often lead to innovations, and the finance sector is no exception. Already we are seeing encouraging trends like the use of blended finance and impact investing, and a growing interest among private investors to invest more responsibly. Despite these positive developments, public and private investments are still too low to meet the SDGs by 2030. Investment is particularly needed in sectors like agriculture and related infrastructure. Investment can catalyse a country’s development and contribute to ending poverty in all its forms, achieving zero hunger, food security and improved nutrition, creating decent jobs, especially for youth, and promoting environmental sustainability. Governments play a crucial role in meeting these goals, as they can foster an enabling environment that stimulates responsible and inclusive private investment. Only effective and coherent policy and regulations can spur additional investments and make developing countries more attractive to private sector investment. FAO, as custodian of 21 SDG Indicators, and through its work with International Financing Institutions (IFIs), among others, helps the private sector shape and monitor their contributions to these goals. We are also committed to promoting more robust enabling environments for private investment in sustainable agrifood systems, while also making sure those investments reach where they are needed most. The FAO Investment Centre, together with its IFI partners, is already responding to this evolving development finance landscape. In addition to assisting member countries in designing good quality public sector investment operations in partnership with IFIs, the Centre plays a strategic role in promoting a good investment climate. It does this by strengthening the linkages between policy and investment support and by focusing on national development efforts that facilitate long-term sustainable investment. The Investment Centre collaborates with other FAO divisions and decentralized offices to help countries bring greater focus to their agricultural policies. It promotes dialogue with farmers, their organizations and food system actors, as well as collaboration among different stakeholders and development partners. The Centre brings FAO’s technical knowledge to bear on the investment process to help countries realize their full potential. In all, the Investment Centre helps countries make better investment decisions for a healthier, greener and more sustainable future. 5 “Leveraging investments in agriculture, including from the private sector,
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