USAID, in partnership with Incofin, GAIN, and the Swiss Agency for Development and Cooperation (SDC), has launched the Nutritious Food Fund (N3F). The Fund aims to boost the production and distribution of safe and nutritious food across sub-Saharan Africa, impacting the lives of millions of people in the region.
The fund has an initial target of Ksh 3.9 billion ($30 million) and a first loss capital of approximately Ksh 1.4 billion ($11 million) already secured. The N3F is an open-ended debt fund that will invest in SMEs focused on improving nutrition in sub-Saharan Africa. Its blended structure combines funds from public and private donors to attract capital from private investors.
It will support SMEs across the nutritious food value chain to produce over half a billion additional servings of nutritious food. More than 7 million people in sub-Saharan Africa will benefit over the next decade.
The N3F’s comprehensive investment strategy is poised to significantly improve access, affordability, and attractiveness of nutritious foods for millions of low-income people, with a focus on women and children. Beyond financial investments, the N3F is committed to providing technical assistance (TA) to SMEs, with GAIN providing this assistance under a grant awarded by the Dutch Ministry of Foreign Affairs. GAIN will also lead the dissemination of knowledge and insights from the validation of the N3F’s nutrition-sensitive investment targeting indicators, a first-of-its-kind nutrition fund.
According to data from the World Food Programme, malnutrition affects more than one in three people worldwide. The challenge of accessing nutritious food is particularly pronounced in Africa, where most food comes from SMEs, especially that consumed by the poorest and most vulnerable people. In today’s world, 80% of Africans cannot afford a healthy diet.
Speaking about the fund, USAID Chief Nutritionist Patrick Webb said: “Even in Africa, most consumers do not produce the food they eat. They buy it in local markets or small stores supplied by small and medium-sized enterprises that work throughout the food system. These are mostly local businesses that process, transport and transform foods of all kinds. I hope that many more donors will join this exciting and innovative initiative.”
Roberta Bove, Senior Manager of Financial Innovation at GAIN, said: “Through the N3F, we aim to pioneer the focus on putting nutrition at the heart of food systems. For too long, investments in food and agriculture in Africa have neglected healthy dietary needs, focusing on export crops or staple foods. Our aim is to show that it is possible to support the entrepreneurs who provide most of the food to local consumers and make diets healthier.”
