The Acumen Resilient Agriculture Fund (ARAF) has secured another $90 million in commitments, giving it more capital to invest in agribusinesses helping African farmers adapt to climate change while improving food production.
The latest commitments come from a mix of returning and new investors. Existing backers including the Green Climate Fund (GCF), Dutch development bank FMO and France’s Proparco have increased their support, while Swedfund, Belgium’s BIO, FASA and a family office are joining the fund for the first time.
The combination suggests continued confidence from long-term partners while attracting fresh institutional capital into climate adaptation.
ARAF invests in businesses developing practical solutions for smallholder farmers, who remain among the hardest hit by rising temperatures, unpredictable rainfall and prolonged droughts across much of the continent. The additional funding will allow the fund to back more companies working on those challenges.
Managing Director Tamer El-Raghy said the new commitments strengthen ARAF’s ability to support farmers facing growing climate risks while delivering returns for investors.
He added that the fund intends to expand beyond its current presence in East and West Africa into North Africa, where changing weather patterns are placing increasing pressure on agriculture.
Acumen President and Chief Investment Officer Carsten Stendevad believes the fund has already demonstrated that climate resilience can be both commercially viable and socially impactful.
He said Acumen plans to bring in more blended finance partners to increase investment in businesses serving smallholder farmers across Africa.
The Green Climate Fund, which anchored ARAF’s first fund, is also increasing its commitment. According to GCF Africa Regional Director Catherine Koffman, the partnership has shown how blended finance can draw private capital into sectors that have traditionally struggled to attract commercial investors.
She expects the expanded fund to strengthen agricultural supply chains while helping farming communities become more resilient to climate shocks.
The fundraising comes at a time when financing for climate adaptation in African agriculture still falls well short of demand. Agriculture remains the backbone of many African economies, employing a large share of the workforce, yet businesses developing resilient seeds, irrigation systems, climate-smart technologies and farmer support services often struggle to secure long-term investment.
That’s where blended finance continues to play an important role. By combining public and private capital, funds like ARAF can absorb some of the risks that discourage purely commercial investors. The result is a larger pool of patient capital for businesses that might otherwise find it difficult to grow.
The raise also says something about where impact investing is heading. Investors are placing greater weight on adaptation rather than focusing solely on emissions reduction.
With food security climbing higher on policy agendas, businesses that help farmers cope with climate disruption are becoming a more attractive investment proposition.
For agritech startups and agricultural SMEs, that could mean more opportunities to raise growth capital at a time when venture funding remains selective across Africa.
Companies that can demonstrate measurable improvements in productivity, supply chain resilience or climate adaptation are likely to stay near the top of investors’ watchlists.
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