Acumen's ARAF Secures US$90M to Scale Climate-Resilient Agriculture Across Africa

Tamer El-Raghy, ARAF Managing Director

The Acumen Resilient Agriculture Fund (ARAF) has secured US$90 million in additional committed capital to accelerate investments in climate-resilient agribusinesses across Africa, strengthening one of the continent's largest blended finance initiatives focused on helping smallholder farmers adapt to climate change while generating long-term commercial returns.

The latest capital commitment comes as Africa faces increasing climate risks. According to the United Nations Food and Agriculture Organization (FAO), agriculture contributes approximately 35% of Africa's GDP and supports the livelihoods of more than 60% of the continent's workforce, making climate resilience a critical investment priority.

The fund has been supported by returning investors including the Green Climate Fund (GCF), FMO, and Proparco, while attracting new commitments from Swedfund, BIO, FASA, and a family office investor.

Who invested in the latest ARAF funding round?

The new commitments combine support from existing institutional investors with new development finance partners, reinforcing confidence in blended finance as a vehicle for climate adaptation.

Investor	Type	Role in ARAF
Green Climate Fund (GCF)	Climate finance institution	Returning anchor investor with increased commitment
FMO	Dutch development bank	Returning investor
Proparco	French development finance institution	Returning investor
Swedfund	Development finance institution	New investor
BIO	Belgian investment company for developing countries	New investor
FASA	Investment partner	New investor
Family Office Investor	Private capital	New investor

The expanded investor base demonstrates growing institutional demand for investments that combine measurable climate impact with financial performance.

How does ARAF support climate resilience for African farmers?

ARAF invests in high-growth food and agribusiness companies that provide technologies, services, and market access to smallholder farmers, enabling them to better withstand climate-related disruptions.

The fund focuses on businesses that can:

• Improve climate resilience through innovative agricultural solutions.
• Increase food production despite changing weather conditions.
• Strengthen agricultural supply chains.
• Expand access to finance and markets for farmers.
• Deliver commercial returns alongside measurable climate impact.

This investment strategy aligns with global efforts to mobilize blended finance, where public and development capital helps attract private investment into sectors that deliver both economic and social outcomes.

Why is North Africa becoming ARAF's next growth market?

With the new capital, ARAF plans to expand beyond its existing investments in East Africa and West Africa into North Africa, where climate pressures on agriculture continue to intensify.

According to the Intergovernmental Panel on Climate Change (IPCC), Africa remains one of the regions most vulnerable to rising temperatures, prolonged droughts, and water scarcity. These conditions increasingly threaten agricultural productivity and food security across the continent.

Tamer El-Raghy, Managing Director of ARAF, said the additional capital would enable the fund to reach millions more farmers facing climate-related risks while continuing to generate attractive returns for investors.

"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."

Why does this funding matter for Africa's climate investment ecosystem?

The latest close highlights the growing role of blended finance in addressing Africa's climate financing gap.

Acumen President and Chief Investment Officer Carsten Stendevad said the fund demonstrates that climate resilience is now an investable asset class rather than a theoretical concept.

Meanwhile, Catherine Koffman, Director for the Africa Region at the Green Climate Fund (GCF), noted that GCF's continued participation reflects the success of using public climate finance to mobilize larger pools of private capital for climate-resilient agriculture.

The transaction also reflects a broader trend in emerging markets where development finance institutions increasingly partner with private investors to fund sectors that are difficult to finance through conventional venture capital alone. Similar blended finance ecosystems are emerging across innovation hubs including Hub71 and the Abu Dhabi Global Market, while large-scale sustainability initiatives such as NEOM continue to accelerate climate-focused investment across the Middle East.

What does the US$90 million commitment signal for investors?

The additional US$90 million positions ARAF to scale investments in climate-resilient agribusinesses across a broader geographic footprint while strengthening food security for millions of smallholder farmers.

As climate adaptation financing becomes increasingly urgent, institutional investors are demonstrating that resilient agriculture can deliver both measurable environmental impact and sustainable financial returns—an investment model likely to become increasingly important across Africa's agricultural economy.

 

 

FAQs

1. What is the Acumen Resilient Agriculture Fund (ARAF)?
ARAF is a blended finance investment fund managed by Acumen that invests in climate-resilient agribusinesses helping African smallholder farmers adapt to climate change while delivering financial returns.

2. How much funding did ARAF raise?
ARAF secured an additional US$90 million in committed capital from returning and new institutional investors to expand its climate-focused investment strategy across Africa.

3. Who invested in ARAF's latest funding round?
Returning investors include Green Climate Fund (GCF), FMO, and Proparco. New investors include Swedfund, BIO, FASA, and a family office investor.

4. Why is climate-resilient agriculture important in Africa?
Agriculture accounts for roughly 35% of Africa's GDP and supports more than 60% of the workforce. Climate-resilient farming helps protect food production, farmer incomes, and supply chains from increasing climate risks.

5. Where will ARAF expand next?
Following its investments in East and West Africa, ARAF plans to expand into North Africa, where climate change is placing growing pressure on agriculture and water resources.