Innovations Against Poverty challenges the private sector to develop
products, services and business models that can contribute to the fight
against poverty and climate change.
Through our advisory and non-reimbursable funding, we support
innovative Inclusive Business models that deliver developmental benefits
for the low income population in both rural and urban areas, while
being commercially viable.
Private sector development has proven to be a real catalyst of change
when it comes to creating the opportunity for low income people to lift
themselves out of poverty. Additionally, low income markets represent a
large business opportunity: the four billion people living on less than
$8 USD a day constitute a global consumer market with a shared
purchasing power valued at 5 trillion USD. The low income population
provides the potential to increase labour, supplier and distribution
channels that can support expanded production and market supply. This
offers significant scope for entrepreneurship and private sector
development to make a positive impact on low income people’s quality of
life.
Innovation and risk-sharing
By thinking innovatively, companies can develop business ideas that
solve social and environmental issues while at the same time maximizing
their competitiveness and profitability. However, many of these
initiatives are exposed to commercial, technical and financial risks,
and have limited access to markets. Most companies initiating an
innovative Inclusive Business idea traditionally lack the technical
support required and are too large for micro-finance, and too small and
risky for mainstream commercial debt and venture capital, making them
part of the so-called “Missing Middle” gap.
In this context, the Swedish International Development Cooperation
Agency (Sida) launched the Innovations Against Poverty Fund (IAP) to
stimulate private sector development initiatives which otherwise would
not have taken place. The IAP fund functions as a risk sharing
mechanism, with the specific mandate to identify and support innovative
Inclusive Business models that deliver both commercial benefits for the
private sector and developmental benefits -such as the creation of jobs,
income increase and access to basic goods and services- for low income
people, prioritizing women and youth.
Moreinfo: https://iba.ventures/iap
