FY2021 Annual Report: Initiative for Smallholder Finance/ISF Advisors

The organization was originally launched in May 2013 as a multi-donor initiative to address the gap between the $240 billion in smallholder financing need and the $70 billion supply. ISF's research has underpinned key resources in the rural finance space, including a new landscape report, "Agricultural Platforms in a Digital Era," released in Q1 2021. ISF's research focuses on three key impact pathways: the learning pathway, the new infrastructure pathway, and the intermediation pathway. The learning pathway involves building knowledge and defining opportunities to lead to action. In FY2021, ISF completed a digital platforms landscape analysis, which created a fact base to identify opportunities for investment in support of rural service provision for agri-SMEs and smallholder farmers. ISF also collaborated with the Smallholder and Agri-SME Finance and Investment (SAFIN) network to develop a new segmentation framework for agri-SMEs. The new infrastructure pathway involves facilitating new partnerships and initiatives. In FY2021, ISF advised on the initial design of the Social Enterprise Fund for Agriculture in Africa (SEFAA), which was launched in 2021 with a $24 million investment from KFW. ISF also worked on the development of the Nutritious Food Financing (N3F) Facility, which received an initial funding commitment from USAID. The intermediation pathway involves supporting early-stage investment ideas as a design catalyst. In FY2021, ISF completed a brief blog on different methods of aligning grant funding in support of mobilizing investment in agri-businesses. ISF also advised on the launch of the N3F Fund, which aims to provide financing for nutritious food production and processing. ISF has a global presence with projects and team members spread across the world. The organization has worked on projects in Africa, South America, Asia, and Europe, and currently has 14 team members in the U.S., Kenya, Cote d'Ivoire, South Africa, Spain, France, and Australia. ISF collaborates with other organizations through its projects and research, including Partners for Food Solutions, TechnoServe, Lutheran World Relief, and CGAP. In July 2021, ISF Advisors formally incorporated as a stand-alone non-profit entity, allowing the organization to maintain its own accounts, employ staff, and sign contracts with clients/partners. ISF's focus for FY2022 is on working together effectively and efficiently across geographies and skillsets. The organization plans to complete a state of the sector landscape report in partnership with the UK Government's Commercial Agriculture for Smallholders and Agribusiness (CASA) programme on the current state of agri-SME finance and pathways for better alignment of capital in support of agri-SME growth and transformation. ISF's research has shown that digital platforms can play a significant role in supporting rural finance and agri-SMEs. The organization's analysis of digital platforms has identified opportunities for investment in support of rural service provision for agri-SMEs and smallholder farmers. ISF's research has also highlighted the importance of developing a new model for understanding agri-SMEs and the need for a perspective on household transition pathways through the lens of climate change. Overall, ISF Advisors is committed to transforming rural economies by delivering partnerships and investment structures that promote financial inclusion for rural enterprises and smallholder farmers. The organization's research and advisory services aim to support the growth and development of agri-SMEs and smallholder farmers, and to promote financial inclusion in rural areas.