Mobilizing Money and Movements: Creative Finance for Food Systems Transformation

24 May 2022

This report provides investors with a roadmap of creative finance strategies to transform food economies and systems.

Creative Finance

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Case Studies

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Type

Areas of focus

Local market CIAT Manon Koningstein

Local market CIAT Manon Koningstein

Private, public, and commercial investments have historically prioritized efficiency and profit maximization in food production. However, this narrow focus has led to market failures, social inequalities, and environmental damage. Extractive agricultural practices have diminished soil health, water quality, and biodiversity while undermining the rights and well-being of farmers and food producers.

As awareness grows around these systemic failures, investors are recognizing the material risks of maintaining the status quo. Business-as-usual is no longer viable. Instead, innovative financial models that blend capital sources and align with social and environmental objectives are paving the way for a more just and sustainable food economy.

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Exploring Creative Finance Strategies

Mobilizing Money and Movements highlights six initiatives that have successfully leveraged diverse funding mechanisms to drive meaningful change. From Denmark, Mexico, Sri Lanka, Thailand, the United States, and Zambia, these stories of transformation demonstrate how investments can be strategically structured to balance financial returns with social impact.

Key Financial Strategies Identified:

  • Blended Finance Models: Combining philanthropic capital, public funding, and private investments to mitigate risk and enable transformative businesses.
  • Solidarity Economy Principles: Ensuring shared governance, stakeholder participation, and fair distribution of benefits.
  • Catalytic Capital: Redirecting existing financial flows towards enterprises that accelerate food systems transformation.
  • Cooperative and Shared Ownership Models: Supporting financial sustainability while prioritizing equitable economic outcomes.
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Key Insights

  • Recognize the power of blended finance: Catalytic capital plays a crucial role in de-risking investments and enabling innovative business models to thrive.
  • Redirect funding towards impactful initiatives: Investors should actively move capital away from extractive and unsustainable practices.
  • Support shared ownership models: Cooperative and community-based approaches ensure fair and inclusive returns.
  • Build networks with mission-aligned investors: Collaboration among diverse funding sources strengthens the ecosystem for transformative investment.
  • Seek partnerships for systemic change: Governments, financial institutions, cooperatives, and impact investors must work together to unlock new opportunities in food systems finance.
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Global Alliance For The Future Of Food
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