This paper explores why Development Finance Institutions (DFIs) invest minimally in nutrition-focused businesses and how to unlock more funding for food systems. The research is based on interviews with DFI representatives and an analysis of investment trends.
Key findings:
DFIs primarily focus on economic development, climate action, and food security but do not prioritize nutrition.
Challenges to nutrition investment include a lack of internal capacity, unclear financial returns, and perceived high risks.
DFIs view nutrition as complex and difficult to measure, lacking standardized investment criteria.
Potential solutions include integrating nutrition into DFI strategies, developing financial incentives, and offering technical support for investees.
A collaborative approach with DFIs, governments, and private investors is needed to create a market for nutrition-sensitive investments.
This report emphasizes the need for better advocacy and financial models to position nutrition as a viable and investable sector.
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