Urban and city region food systems (CRFS) are critical to sustain their fast-growing populations, yet securing funding to support and improve themrepresents a significant challenge. In view of often constrained public sector budgets,external, ideally long-term, funds must be secured to fully implement food system actions at the local level.  

As part of the CRFS Knowledge Exchange Series, the Food and Agriculture Organization of the United Nations (FAO), the RUAF Global Partnership on Sustainable Urban Agriculture and Food Systems, and the CGIAR Initiative on Resilient Cities organized a webinar on 20 February 2024 - “Financing urban and city region food systems actions”- to demystify the complexities of funding at the local level. From uncovering overlooked resources to enhancing access and fostering collaboration, the event provided actionable insights for cities striving to enhance their food system governance.  

Introducing the webinar, Guido Santini, Coordinator of the CRFS Programme at FAO, emphasized that “potential funding sources often remain untapped due to lack of awareness or lack of knowledge by local stakeholders on how to access them.”  

Expert speakers then illuminated variousfunding mechanisms, providing insights on how cities can benefit from these. Emphasizing the importance of a systemic approach to mobilising funding – i.e., understanding relationships between parts of the system, multiple entry points, and the power of participatory processes, James Tefft of the FAO Investment Centre explained the value of navigating diverse narratives and interests, and establishing technical and political alliances between actors in the space. Lauren Baker, Deputy Director of the Global Alliance for the Future of Food, added that "cities and other actors who are leading the CRFS work can encourage systems investments, as opposed to project investments, to advance food systems transformation." 

Drawing on the role of the private sector, Brian Cook, RUAF Associate, highlighted the need for impact investment to scale public food policies and initiatives. He outlined investment challenges such as a lack of enabling environments; lack of data and information; challenges in findings investable projects; lack of financial intermediation to aggregate smaller opportunities to match risk preferences of larger investments; and lack of effective collaboration. Tefft identified a variety of instruments that can encourage the private sector to invest: public-private partnerships (PPP), fiscal policies, tax incentives and credits, and blended financing (combining development assistance with other public or private resources). “Blended financing helps to derisk investment, and hence attract funds to food systems – while providing returns to investors,” he said.  

Meanwhile, Yuna Chun, Urban Development Analyst at the World Bank, outlined opportunities for cities and countries to develop projects under the Sustainable Cities Programme of the Global Environment Facility (GEF) and the World Bank’s Global Platform for Sustainable Cities, supporting cities in developing innovative sustainability solutions and strengthening institutional capacity to move towards a net zero carbon, nature-positive, inclusive and resilient urban future. Cities can also become a ‘Lighthouse City’ under the Urban Nature Programme, which aims to translate action plans and targets into accelerated financing for nature in cities.  

Tales from two cities  

The webinar also featured representatives from Bulawayo, Zimbabwe, and Curitiba, Brazil, renowned for their food systems work.  

Roundtable discussion with moderator Jess Halliday (RUAF), Dayane Xavier (Municipality of Curitiba) and Shelton Sithole (Municipality of Bulawayo)

Curitiba’s municipal food system actions are supported through two main funding sources: the municipal treasury and the Curitiba Food Supply Fund, which is resourced by reimbursement for partially subsidised products under the Family Warehouse Programme, income from properties and public spaces, and return on financial investments. As the city’s Nutrition and Food Security Policy has gained municipal priority and is correlated with the Sustainable Development Goals, more external investment is anticipated. Barriers such as lack of confidence on the part of city officials and investors’ low inclination to support food systems may be overcome by developing closer relationships.  

In Bulawayo, civil society development partners are the main funders of food systems work to date, including the Urban Agriculture strategy. The city government facilitates these partnerships through a platform, using a ‘layering’ approach of harnessing specific support from different partners for different aspects of the value chains. In addition, Bulawayo became part of the GEF Sustainable Cities Initiative after an assessment by FAO and the local authority uncovered tensions between firewood use for fuel and the mining industry leading to environmental degradation, and the positive impact of food value chains on the local economy. 

In closing, Makiko Taguchi, Agricultural Officer at FAO, expressed optimism: "Overall, I have heard that where there is political will there is a way. I am optimistic from today’s discussion that those cities – like Curitiba and Bulawayo – that are pulling together funding opportunities can change their food systems," she said. "These are good examples that we can learn from."

The recording of the event is available here. 

Register here for the next webinar on 26 March 2024: Overcoming barriers to building the circular bioeconomy