What is IAP?
What is the IAP?
Innovations Against Poverty (IAP) is a challenge fund that provides grants and technical support to innovative inclusive businesses that deliver sustainable solutions for people living in poverty.
Why does IAP exist?
The best solutions to poverty don’t come from handouts — they come from profits. That’s why we’re investing up to €200,000 in businesses that serve low-income communities.
A $5 trillion market opportunity
The 4 billion people who live on less than $8/day represent a $5 trillion market opportunity. But serving these markets brings unique challenges — that’s where Innovations Against Poverty comes in.
What is an inclusive business?
Inclusive businesses connect companies with the vast, often untapped markets at the base of the economic pyramid (BOP). Inclusive businesses integrate them as essential participants in a company’s core operations.
- As suppliers: Sourcing raw materials and products from small-scale producers
- As distributors: Creating jobs through last-mile distribution networks
- As retailers: Empowering micro-entrepreneurs to sell products in their communities
- As customers: Developing affordable, quality products that meet essential needs
Who benefits?
Through our challenge fund, we look for unique businesses in Africa and Asia that have found profitable ways to work with low-income communities — whether as suppliers, employees, distributors, or customers. We select the best ones to receive matching grants of €50,000-€200,000, along with expert support to grow their operations.
How IAP bridges the “missing middle”
We focus on businesses caught in what’s called the “missing middle” – they’re too large for microfinance but too small for commercial investment. By offering both funding and hands-on support, we help these businesses grow and contribute to the United Nations’ sustainable development goals (SDGs) for creating a better world by 2030. These include ending poverty, protecting the environment, and ensuring everyone has access to basic needs like food, water, and healthcare.
How do businesses apply to IAP ?
- Applications for specific countries and themes open during set periods
- Inclusive businesses submit proposals showcasing innovation
- Evaluation and due diligence
- Selection and contracting
- Implementation and investment readiness support
What kind of advisory support do we offer?
Beyond providing matching grants, we work closely with each business to help them grow successfully. Our support includes:
- Expert guidance to help scale their innovations
- Training to help them attract future investment
- For select businesses, we connect them with potential investors and provide ongoing investment mentorship
How does IAP scale successful models?
We document what works. When a business finds a smart way to integrate poor communities into its business model, we share our insights so similar companies can adapt the model to their context.
We also share our approach with other development actors, helping them learn from our successes and setbacks in running challenge funds for business innovation.
How does IAP strengthen the impact investing ecosystem?
We actively help build a stronger support system for impact-focused businesses. We train local business advisors, collaborate with local networks, and work with partners to create an environment where these businesses can succeed.
IAP is managed by SNV and funded by the Swedish government.
What has IAP achieved so far?
IAP results by 2017-2023:
- 39 companies supported
- 2 million people with improved access to basic goods and services
- 700,000 people with increased income or cost savings
- 37,000 tonnes of CO2-EQ avoided or reduced
- €54.5 million additional funding leveraged
- €22.4 million in increased sales revenue
- 92% of customers with improved quality of life
- 83% of customers reported access to a particular product or service for the first time