NAIROBI, Kenya- In a groundbreaking initiative, USAID has partnered with Incofin, GAIN, and the Swiss Agency for Development and Cooperation (SDC) to launch the Nutritious Foods Financing Facility Fund (N3F).
This ambitious fund aims to revolutionize the production and distribution of safe and nutritious foods across Sub-Saharan Africa, significantly impacting millions of lives in the region.
With an initial target of Ksh. 3.9 billion (USD 30 million) and a secured first loss capital of approximately Ksh. 1.4 billion (USD 11 million), the N3F is an open-ended debt fund designed to invest in small and medium-sized enterprises (SMEs) focused on improving nutrition.
The fund’s innovative structure blends public and private donor funds to attract private capital, ensuring a robust financial backbone for the initiative.
The N3F aims to generate over half a billion additional servings of nutritious food, benefiting more than 7 million people in Sub-Saharan Africa over the next decade.
This comprehensive investment strategy is poised to enhance access, affordability, and desirability of nutritious foods, particularly for lower-income individuals, with a special emphasis on women and children.
Beyond financial investments, the N3F is committed to providing technical assistance (TA) to SMEs, facilitated by GAIN under a grant from the Netherlands Ministry of Foreign Affairs.
GAIN will also spearhead the dissemination of knowledge and insights, validating metrics for targeting nutrition-sensitive investments—a pioneering effort in the nutrition sector.
According to the World Food Program, malnutrition affects over one in three people globally, with the challenge being most pronounced in Africa.
Here, 80pc of the population cannot afford a healthy diet, making initiatives like N3F crucial for improving food security and nutrition.
Patrick Webb, Chief Nutritionist at USAID, highlighted the fund’s potential: “Even in Africa, most consumers do not produce the food they eat. They purchase it from local markets or small shops supplied by SMEs. These locally-owned businesses process, transport, and transform foods of all kinds. I hope that many more donors will join this exciting and innovative initiative.”
Roberta Bove, Senior Lead Innovative Finance at GAIN, echoed this sentiment, saying, “Through N3F, we aim to make nutrition central to food systems. Investment in food and agriculture in Africa has often neglected healthy dietary needs, focusing instead on crops for export or staple foods. We aim to support entrepreneurs who deliver most of the food to local consumers and make diets healthier.”
The launch of the Nutritious Foods Financing Facility Fund marks a significant step towards addressing malnutrition and improving food security in Sub-Saharan Africa.
By empowering SMEs and providing essential financial and technical support, N3F is set to transform the nutritional landscape of the region, benefiting millions and fostering a healthier future.
