Swedfund Invests $12 Million to Build Climate-Resilient Food Systems Across Africa
Swedish development finance institution Swedfund has invested $12 million in the Acumen Resilient Agriculture Fund II (ARAF II), backing food and agriculture companies that are helping African smallholder farmers build resilience against climate and economic shocks.
The fund targets businesses that strengthen agricultural value chains by improving farmers’ access to markets, finance and essential services.
More than 30 million smallholder farmers operate across Sub-Saharan Africa, accounting for 80 percent of all farms and producing 70 percent of the region’s food, according to the International Fund for Agricultural Development (IFAD).
Many of these farmers still struggle with limited access to finance, quality inputs, reliable buyers and market information, even as they remain among the groups most exposed to climate change and weather-related shocks that threaten harvests, incomes and food security.
Helen Hagos, Investment Director for Food Systems & Strategic Investments at Swedfund, said the investment was designed to help farmers strengthen resilience and build more stable incomes.
“Climate change is already affecting the livelihoods of millions of smallholder farmers across Africa. Investing in businesses that improve access to markets, finance and agricultural services helps farmers strengthen their resilience, increase productivity and build more stable incomes,” Hagos said.
ARAF II invests in businesses tackling gaps in agricultural value chains, including market access, post-harvest losses, and financial and digital services for farmers.
The fund aims to reach around four million smallholder farmers through its portfolio companies. It also seeks to meet the criteria of the 2X Challenge, a global initiative supporting women’s economic empowerment.
Swedfund is investing alongside other development finance institutions and investors to help mobilise long-term capital for African agribusinesses that often struggle to access financing despite their role in food security and economic development.
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