This background note for the development of an AIS Investment Sourcebook provides a menu of tools and guidance to invest in agricultural innovation in different contexts. The content is drawn on tested good practice examples and innovative approaches with emphasis on lessons learned, benefits and impacts, implementation issues, and replicability
In line with the government of Mozambique’s strategies, this document proposes an innovative model with high promise to develop value-adding market led post-harvest processing enterprises and to transform the post harvest-processing sector in Mozambique, while creating sustainable jobs and increasing incomes. The challenge is to ensure coordination across value chains to guarantee that the right conditions are in place for making the Agribusiness Innovation Center (AIC) a success.
Tanzania has tremendous potential to support a thriving agribusiness sector. Agriculture is diverse and extensive, employing more than 80 percent of the population, and contributing about 28 percent of Gross Domestic Product, or GDP and 30 percent of export earnings. A wide range of agricultural commodities are produced in Tanzania, including fiber (sisal, cotton), beverages (coffee, tea), sugar, grains (a diverse range of cereals and legumes), horticulture (temperate and tropical fruits, vegetables and flowers) and edible oils.
The Commission on Sustainable Agriculture Intensification (CoSAI) and the Foreign, Commonwealth and Development Office (FCDO) jointly commissioned a gap study to determine how far away innovation investment is from helping agri-food systems achieve zero hunger goals and the Paris Agreement while reducing impacts on water resources in the Global South. The results show that the world can come much closer with some well-placed investments.
Considering the new opportunities that ICT innovations bring to improve performance of financial and extension services, this study looks at the potential contribution of financial and extension services to the Sustainable Development Goals (SDGs). The approach used extends the standard Data Envelopment Analysis (DEA) model to include longer-term management goals and find a solution that balances the efficient use of innovation investments and the achievement of policy goals, making this approach well suited for the analysis of the SDGs.
A range of approaches and financial instruments have been used to stimulate and support innovation in agriculture and resolve interlocking constraints for uptake at scale. These include innovation platforms, results-based payments, value chain approaches, grants and prizes, incubators, participatory work with farmer networks, and many more.
Innovation for sustainable agricultural intensification (SAI) is challenging. Changing agricultural systems at scale normally means working with partners at different levels to make changes in policies and social institutions, along with technical practices. This study extracts lessons for practitioners and investors in innovation in SAI, based on concrete examples, to guide future investment.
A huge increase in investment in innovation for agricultural systems is critical to meet the Sustainable Development Goals and Paris Climate Agreement. Most of this increase needs to come from reorienting existing funding for innovation. However, understanding whether an investment will fully promote environmentally sustainable and equitable agri-food systems can be difficult.
Finance is a key lever for turning agriculture from a potential source of environmental harm and social inequity to a driver of conservation and social inclusiveness. Private and public sector funding for farmers to combat climate change and protect and restore nature (‘Paying for Nature’) is rapidly increasing. Yet this new funding may not reach its aims without drastically improving farm-level reward mechanisms.