To support the provision of climate resilience solutions to smallholder farmers in East and West Africa, the Dutch development bank, FMO has invested $7.5 million in the Acumen Resilient Agriculture Fund (ARAF).

An impact investment firm, Acumen set up the Acumen Resilient Agriculture Fund (ARAF) to lend support to smallholder farmers, in order to improve their livelihoods, as well as enhance climate resilience.

The support fund, with a targeted size of $50million, will provide financial and technical support to agribusinesses at their early stages.

The Director, Agribusiness, Food, and Water at FMO, Pieternel Boogard stated that the reduction of carbon emissions alone is not enough to downplay the effects of climate change. He added that investing in climate adaptation projects or climate resilience clients, which are the smallholder farmers, has become a necessity.

“This is why we are proud to partner with Acumen in this innovative fund that aligns well with our strategy to invest in climate-smart agriculture as well as enhance food security, support sustainability, and promote inclusive development”. He explained.

ARAF is also set to invest in companies like Aggregators, who provide bundled solutions to farmers. Other targeted companies include Agri Tech businesses that provide digital solutions to Agric issues and Financial service providers that provide farmers with access to enabling financial services.

SOURCE: AGRONIGERIA