Since IAPRI's inception in May 2012, the Institute has continued to be funded by Swedish Embassy (SEK48.3 Million) and USAID ($4.9 Million) each with 5 year funding agreements meant to cover the Institute's core activities as per approved strategic plan. As part of diversifying its funding base, the Institute has since developed its Financing Strategy which has seen the approval by the Board to set up a Business Development Unit (BDU) aimed at creating a mix of restricted and unrestricted funding.

The Institute is equally keen to collaborate with multilateral, bilateral, public and other organisations who share the IAPRI vision to ensure the Institute has a good mix of both project and programme funding. All these efforts are aimed at creating a sustainable financing mechanism for the institute.