Financing the Future of Food @ FINAS 2025

A mentimeter warm-up exercise revealed that most of the 40 participants in the side session are representatives of private financial service suppliers, followed by non-financial private sector actors. At the start of this session, the majority of participants (62%), indicates they are 'moderately familiar' with the concept of Food Systems. All embrace the definition of a Food System as 'All elements and activities related to food production, processing, consumption and disposal and its outcomes'. To the question 'how do you think financial institutions can support a more resilient food system in Kenya?', the majority suggested more affordable and suitable financial products, as well as offering patient capital and understanding the food system. The last question was: 'if you had $10 million to transform food systems, where would you invest it first?'. Four preferred areas of investment came out: Tech, de-risking, post harvest loss management and mechanization.

Subsequently Mrs. Wangeci Gitata, Foresight4Food, introduced "Food System Thinking" and its application in Kenya. Moreover she introduced the Foresight4Food Initiative, which uses scenario analysis to understand and navigate the complexities of food systems. They highlight the challenges of uncertainty and turbulence in these systems due to factors like climate change and economic shifts. The concept of exploring different potential futures through scenarios is presented as a way to prepare and adapt.

Furthermore, she emphasized the importance of considering various factors that drive change, including social, political, economic, and regulatory influences. In the specific context of Kenya's food system, practical examples, like the Nakuru County foresight process, illustrate how these concepts are applied, focusing on identifying key trends, uncertainties, and potential scenarios. The role of financial institutions in creating a sustainable food system is also highlighted, including managing hidden costs and responding to sustainability demands and regulatory changes.

Mrs. Hannah Brooke, Capitals Coalition introduced a multi-capital approach to redefine value and success in business decision-making:

• Dominance of financial capital has led to distorted realities and increased risks, especially in the global food system.

• Multiple capitals, including natural, social, human, and produced capital, offer a more holistic valuation perspective.

• Incorporating these capitals into business strategies enhances risk mitigation and articulates sustainability value.

• Real-world examples demonstrate the practical application of multi-capital accounting to bolster business resilience.

Mr. Godfrey Mambo, Rabobank, moderated a panel in which experts from public and private finance jointly explored the role of finance in food system transformation. The panel consisted of: Mr. George Macharia, General Manager Food & Agriculture, Equity Bank Kenya Ltd, Ms. Sophie van Hoof, Dutch Desk Manager in Kenya, Invest International and Mrs. Ulla Balle, Senior Advisor on Blended Finance, Dan Church Aid (DCA).

Building on Capitals Coalitions work, introducing the 4 Capitals: Natural Capital, Human Capital, Social Capital and Produced Capital, the panelists reflect on which of the Capitals, besides produced capital, form an inspiration for the financial expert panelists?:

Ulla of Dan Church Aid identifies Natural Capital as a key inspiration. Out of concern about the global overuse of natural resources to produce waste (e.g., water usage, land for waste) and emphasizes the inheritance of environmental degradation by future generations. But it is difficult to pick just one as they are all interconnected. While George, Equity Bank, states that all four capitals are inseparable and like a "three-legged stool" (implying if one is missing, the system is unstable). He mentions Equity Bank's "three-engine model" focusing on sustainability, commercial viability, and social investment.

On the moderators question ‘How do you make this complex thing (food systems transformation) make sense and start making headway so that a year down the line we are not still talking about the first steps?’, Ms. Sophie of Invest International emphasizes the need to work together with all actors in the food system to build investment platforms and shared infrastructure. She highlights the role of public, private, and philanthropic partners moving in the same direction and mentions blended finance and partnerships as key to creating impact. George of Equity Bank stresses the need for a transformation in thinking towards a "systems thinking approach." This approach needs to be incorporated into all strategies of different organizations. Advocates for strategic thinking with foresight, considering the future implications of current actions. Highlights the importance of localizing solutions to have an actual impact and putting numbers behind the words to measure this impact.

The session concluded with an overview what to expect from Netherlands Food Partnership regarding Food System Finance in 2025:

• E-course Food Systems specifically for professionals from the financial sector by NFP and Wageningen University, with a reference group consisting of : IFAD, Equity Bank Kenya, Rabobank, Oikocredit, Triodos Bank and the Dutch Ministry of Foreign Affairs. Expected launch in Q4 2025 – stay tuned !

• Food Systems Finance Learning Track - Kenya 1st event took place in April 2025. This will be followed-up by more webinars and in-person learning events in 2025 - More to come soon !

• Launch of the CoP Food System Finance - Join us now!