Swedfund has committed USD 12 million to the Acumen Resilient Agriculture Fund II (ARAF II), backing businesses that help strengthen agricultural value chains across Africa and improve climate resilience for millions of smallholder farmers.
The investment will support companies providing farmers with better access to markets, finance, quality agricultural inputs and digital services, helping them withstand the growing impacts of climate change while improving productivity and incomes.
According to the International Fund for Agricultural Development (IFAD), more than 30 million smallholder farmers operate across Sub-Saharan Africa, representing 80% of all farms and producing 70% of the region’s food. However, many continue to face limited access to financing, reliable buyers and critical farming services, while remaining highly vulnerable to extreme weather and other climate-related shocks.
“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. That is essential for more resilient food systems,” said Helen Hagos, Investment Director for Food Systems & Strategic Investments at Swedfund.
ARAF II focuses on businesses tackling bottlenecks across agricultural value chains, including reducing post-harvest losses, expanding market access and increasing financial inclusion through digital services. Swedfund said supporting the growth of these companies will strengthen local food systems while improving economic opportunities for farmers.
The fund aims to reach approximately four million smallholder farmers through its portfolio companies. It is also designed to meet the 2X Challenge criteria, promoting investments that advance women’s economic empowerment.
Swedfund is investing alongside other development finance institutions and impact investors to mobilise long-term capital for agricultural businesses that often struggle to secure financing despite their potential to improve food security, climate resilience and economic development across Africa.
