Innovations Against Poverty (IAP-3) Challenge Fund

Innovations Against Poverty (IAP) is a specialised fund that aims to drive positive social and economic change by supporting innovative and inclusive businesses in Cambodia, Ethiopia, Uganda, and Zambia. This three-year initiative, managed by SNV and funded by the Swedish International Development Cooperation Agency (SIDA), provides companies with grant funding and tailored technical assistance in an effort to enhance the livelihoods of people living in poverty (PLIP) through sustainable, market-based solutions.

Despite significant progress in poverty reduction, barriers such as lack of capital and limited business support continue to hinder the growth of inclusive businesses in developing markets. This phase of the Innovations Against Poverty programme works with businesses with commercially viable innovations that are ready to scale. These businesses engage PLIP as consumers, suppliers, and distributors, offering access to essential goods and services while creating income-generating opportunities. The IAP fund serves as a risk-sharing mechanism to stimulate private sector development initiatives.

By leveraging our in-country presence and extensive networks, IAP supports businesses in building the capacity needed to scale, with a strong emphasis on women’s economic empowerment, environmental sustainability, and financial inclusion. Our approach, refined during earlier funding rounds, includes a streamlined, business-friendly application process, multi-faceted advisory support including go-to-market strategies and gender and environmental sustainability, and extensive mentorship and investment readiness services. IAP aims to drive systemic change, contributing to inclusive economic development and poverty reduction in its target countries by fostering an overall more supportive entrepreneurial ecosystem.

Results and impact from previous funding rounds:

• Over 2M people living in poverty with improved access to basic goods and services (clean and affordable energy, clean cooking, clean water, sanitation services, financial services, or nutritious food).

• Over 700K people living in poverty with increased income or costs savings due to products or services IAP investees offered to their consumers.

• Nearly 37K tonnes of CO2-EQ avoided or reduced

• Over Euro 22.4 M in increased sales revenue for the supported companies since the start of their involvement with the IAP fund.

• Over Euro 32M in additional funding leveraged by supported companies.

• 92% of customers served by supported companies reported an improvement in their quality of life, and 83% of customers served by these companies reported accessing a particular product or service for the first time.