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The Acumen Resilient Agriculture Fund (ARAF) has secured an additional $90 million in committed capital to scale climate-resilient agribusiness companies across Africa. Returning investors Green Climate Fund (GCF), FMO and Proparco, which have supported ARAF since inception, were joined by new backers Swedfund, BIO, FASA and a family office investor.
ARAF invests in fast-growing food and agribusiness ventures that help smallholder farmers adapt to climate change.
“Climate change is a fact of life, and climate resilience for farmers is the difference between a good season and the risk of losing everything,” said Tamer El-Raghy, managing director of ARAF. “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.”
“ARAF proved that resilience is investable, not theoretical,” said Acumen’s president and chief investment officer, Carsten Stendevad. “We’re bringing more blended capital and more partners to the table to help smallholder farmers across Africa adapt to a changing climate. This is the kind of capital the moment demands.”
“GCF, having served as the anchor investor in ARAF I, through our ongoing partnership with Acumen has demonstrated how blended finance can mobilize private capital for climate-resilient agriculture,” said Catherine Koffman, GCF director of the Africa region. “Such financing supports innovative agribusinesses and strengthens the resilience of smallholder farmers and agricultural supply chains. GCF is increasing its commitment to expand the fund’s geographic reach and scale up climate-resilient investments for farmers, who are among the most vulnerable to the impacts of climate change.”
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