Swedfund invests US$12M in Acumen fund to boost climate resilience for African farmers
The investment aims to improve productivity, strengthen local value chains, and enhance the resilience of food systems.
AFRICA – Swedish development finance institution Swedfund is committing US$12 million to the Acumen Resilient Agriculture Fund II to bolster food security across Africa by supporting private companies that provide smallholder farmers with financial services, digital tools, and improved market access.
More than 30 million smallholder farmers operate across Sub-Saharan Africa, accounting for 80% of farms and producing 70% of the region’s food. Yet many have limited access to finance, quality inputs, reliable buyers, and market information.
At the same time, they are among the most exposed to climate change and weather-related shocks, which threaten harvests, incomes, and food security.
“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,” says Helen Hagos, Investment Director at Swedfund.
Furthermore, ARAF II invests in businesses that address key gaps across agricultural value chains, ranging from improving market access and reducing post-harvest losses to expanding financial and digital services for farmers.
Digital services play a crucial role in strengthening food security by providing farmers with real-time market information, weather forecasts, and agronomic advice via mobile platforms. These tools enable better decision-making for planting, harvesting, and selling, while digital payment systems facilitate access to savings and credit.
Therefore, by helping these businesses grow, the investment aims to improve productivity, strengthen local value chains, and enhance the resilience of food systems.
In addition, the investment specifically addresses climate risks for smallholders by supporting companies that supply climate-smart agricultural inputs, drought-resistant seeds, and irrigation technologies.
It also funds businesses that provide weather-indexed insurance products to protect farmers against crop failures caused by extreme weather events. These interventions help farmers adapt to changing conditions and recover more quickly from climate-related losses.
Moreover, the investment also aims to meet the criteria of the 2X Challenge, which promotes investments that support women’s economic empowerment through targeted support and financial products.
This strategic funding aims to increase crop productivity and build more resilient food systems for millions of people, protecting farmers from the volatile effects of climate change and economic instability.
Lastly, by strengthening agricultural value chains, the investment creates sustainable livelihoods and supports broader economic development goals across the continent.
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