Spotlight on Food Security: Reflections on Financial Inclusion

By Antonella Abategiovanni, Executive Director, Financial Inclusion Forum

On November 12th, the Financial Inclusion Forum hosted a compelling discussion on the intersection of food security and financial inclusion. Inspired by the European Microfinance Platform‘s annual European Microfinance Week, this event highlighted the role of innovative financial solutions in addressing the global challenge of food insecurity.

Why Food Security Matters

As Suzanne Van Ballekom, FIF Director, eloquently reminded us during the event, 1 in 10 people worldwide will go to bed hungry tonight, and approximately 300 million are so severely food insecure that their livelihoods and lives are at risk. In many developing countries, smallholder farmers—ironically, the very people producing food—are among the most food insecure, often struggling to meet their families’ nutritional needs throughout the year.

Financial inclusion plays a pivotal role in addressing this challenge. For households where food constitutes up to 70% of spending, the ability to save securely, access credit tailored to agricultural cycles, or insure against unforeseen risks can significantly alleviate food insecurity. However, solutions must go beyond just providing access to credit; they require aligning financial products with agricultural cycles and the unique needs of farmers.

The Highlights

1. Regional Perspectives: Whole Foods Market Foundation
   Claire Kelly, Portfolio Director for West Africa and the Middle East at Whole Planet Foundation, shared how their approach centers on empowering smallholder farmers through free and flexible capital provided to a portfolio of new social enterprises. These ventures offer farmers accessible finance bundled with services like training and market linkages, enabling improved productivity and sustainable practices.
   
2. Regional Innovation in West Africa: A standout example came from Sierra Leone, where Whole Planet’s partner, Farming Out of Poverty, equips subsistence farmers with agricultural inputs, training, and market linkages to transition into profitable farming. Their innovative picture-based curriculum in local languages ensures inclusivity, particularly for farmers with limited literacy.
   Grassland Cameroon, represented by its founder, Manka Angwafoa, showcased how it combines asset-based financing with climate-smart agricultural practices. The organization has also ventured into food processing, launching Cameroon’s first commercially viable maize-based breakfast cereal. Grassland addresses supply and demand within the food system by supporting farmers and creating affordable, nutritious products. Meanwhile, FOOP’s efforts focus on helping subsistence farmers transition to profitable farming through accessible financial tools and agricultural innovations. Their interventions are particularly impactful in areas where food insecurity is exacerbated by instability and conflict.
3. Local Impact: Fair for You and Iceland Foods
   In the UK, Fair for You , a social Community Development Financial Institution (CDFI), exemplifies how financial inclusion can address food insecurity in high-income countries. In partnership with Iceland Foods, their Food Club product provides interest-free loans to families, allowing them to purchase food and essential grocery items without resorting to high-cost credit or loan sharks. This model is a win-win, benefiting both customers and business partners like Iceland Foods, who are committed to supporting their customers during the Cost of Living Crisis.Beyond Food Club, Fair for You also offers access to household goods on social credit terms, empowering low-income families with affordable options for essential purchases. Early results from Food Club show improved diets, reduced stress, and significant savings on interest costs.

Key Themes

• Tailored Financial Products Beyond Credit Access: Loan terms aligned with agricultural cycles, savings-based models, and profit-sharing arrangements are essential for smallholder farmers. Solutions must address broader needs beyond just providing credit.
• Flexible and Affordable Capital: Speakers emphasized the critical need for accessible, interest-free, or zero-interest capital from the inclusive finance and impact investment sectors to drive scale and impact. For instance, Whole Planet Foundation offers flexible capital to growing ventures, and Fair for You ensures interest-free products for its customers.
• Collaborative Solutions: Financial inclusion isn’t a solution on its own; it takes collaborative partnerships to create a meaningful impact. Partnerships like those between financial institutions, social enterprises, retailers, and NGOs amplify interventions’ reach and effectiveness.
• Climate Resilience: Both Grassland Cameroon and FOOP highlighted the importance of climate-smart agricultural training and technologies like greenhouses to mitigate the risks of unpredictable weather patterns.

A Call to Action

Our November 12th event reaffirmed the critical link between food security and financial inclusion. Food security is not a standalone issue—it’s deeply interwoven with financial resilience, education, and sustainability.

The Financial Inclusion Forum is proud to spotlight these innovative solutions and foster a community of practice to tackle these challenges head-on. Thank you to our speakers, moderators, and attendees for making this event a success.

Stay tuned for updates on upcoming events and opportunities to engage with our community!

Resources

Here are some resources from the event if you are interested in learning more about the participants in this session:

• e-MFP European Microfinance Week report on Inclusive Finance for Food Security and Nutrition can be found at: https://bit.ly/eMFPFoodSecurityReport    
• World Food Programme Hunger Map: https://hungermap.wfp.org/ 
• Fair for You – https://www.fairforyou.co.uk 
• Whole Foods Market Foundation – https://www.wholefoodsmarketfoundation.org/ o
• Farming out of Poverty (FOOP-  www.foop.ag 
• Grassland Cameroon please reach out to Manka at manka@grassland-africa.com

If you would like to watch the full conversation, please check out the recording