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.
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 their advisory and non-reimbursable funding, they support innovative Inclusive Business models that deliver developmental benefits for the low income population in both rural and urban areas, while being commercially viable.
Background of IAP
The IAP fund was initially launched in 2011, taking on a pioneering role in promoting innovations and social entrepreneurship aimed at the low income population. During the pilot phase from 2011 until 2016, 66 projects have received funding, 34 large grants and 32 small grants, and a total of €5,4m has been invested in various sectors across 30 developing countries in the world.
Following the success of the pilot phase, Sida launched the second phase of the IAP fund in 2016, managed by SNV Netherlands Development Organisation in partnership with Inclusive Business Sweden (IB Sweden) and BoP Innovation Center (BoP Inc.). The second phase is designed for innovative inclusive business ventures in Cambodia, Ethiopia, Uganda and Zambia active in one of the following sectors:
- Agriculture and food: including, but not limited to, achieve food security and improved nutrition; promote sustainable agriculture;
- WASH: including, but not limited to, availability and sustainable management of water and sanitation for all;
- Energy: including, but not limited to, access to affordable, reliable, sustainable and modern energy for all;
- ICT: including, but not limited to, access to technologies and services that help deliver solutions in the sectors above or other basic needs.
IAP provides advisory support and non-reimbursable funding from EUR 50,000 to EUR 200,000
- Your business idea will be inclusive of the Low Income People (LIP) either as suppliers, employees, distributors and/or consumers for mutual benefits;
- Your business idea is relevant to at least one of the four focus sectors of IAP and at least to one of the four target countries;
- Your business idea brings a clear product or business model innovation;
- Your company or partner(s) related to the proposed business idea are not involved in the arms, tobacco, alcohol and gambling industries; registered in so called tax-havens; involved in environmental or human rights abuses or corruption; or have not been an EU beneficiary of €200,000 or more in the last 3 years;
- Your application is submitted and led by a private company, which secures a co-investment ≥ 51%, of which part of it should directly benefit the LIP.
- Log in or create a user account on the IBA platform. After registering you will receive a confirmation email to activate your account;
- When you are logged to your IBA account you will see the ‘Save and continue later’ option at the bottom of the form. When you use this option you will receive an email with a link to the form and you can continue the IAP application at another time.
Picture credit: Innovations Against Poverty Fund