The Acumen Resilient Agriculture Fund (ARAF) announced it has secured an additional $90 million in committed capital to scale climate-resilient agribusinesses across the African continent.
Current anchor investors in the newly committed capital include returning partners the Green Climate Fund, FMO, and Proparco, joined by new investors Swedfund, BIO, and FASA, alongside a US-based family office.
Smallholder farmers produce nearly 80% of Africa’s food, yet climate shocks put their livelihoods, and the food systems that depend on them, at direct risk. ARAF, launched in 2020 as the world’s first equity fund designed to build the climate resilience of smallholder farmers, invests in fast-growing food and agribusinesses that help smallholder farmers adapt to climate change. ARAF has already directly reached more than 3 million smallholder farmers through its 12 portfolio companies in East and West Africa, with more than 80% of farmers reporting an increase in income and yield as a result.
“This newly committed capital allows us to continue supporting climate resilience for farmers, while seeking to provide financial returns for our investors as we expand beyond East and West Africa into North Africa, where millions of farmers are affected by climate change,” said Tamer El-Raghy, Managing Director of ARAF.
ARAF is expanding beyond its current activities in East and West Africa into North Africa for the first time. Its future ambition is to create direct impact for at least four million additional farmers, by investing in innovative, scalable companies whose business models help farmers cope with drought, flooding, and increasingly unpredictable weather.
Fund management said the newly committed capital reflects growing confidence in the blended finance model and its role in mobilizing private capital to support sustainable development, strengthening the resilience of Africa’s food sector in the face of climate change.