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Farmers and agribusinesses at risk under COVID-19: What role for blended finance funds?

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The COVID-19 pandemic is a major economic shock, throwing into question the resilience of the agrifood sector at this stage, particularly in developing countries where self-employed, wage and informal workers are threatened by food supply chain disruptions, limitations on movement and trade restrictions. Even before the crisis, small and medium agribusinesses were often considered to be credit-constrained and extremely vulnerable to shocks. Reaching out to this underserved segment has been one of the objectives driving the development of blended finance funds and facilities in the agrifood sector.

While many operators will be focusing on managing their portfolio through these turbulent times, there is an opportunity to step up blended finance´s contribution to mitigate COVID-19 negative impacts and accelerate the recovery, including Build Back Better efforts. This brief looks at different options for blended finance in the short, mid and long term to help farmers and agribusinesses at risk under COVID-19. 

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