Acumen’s $90M Climate Fund to Empower Millions of African Smallholder Farmers

Africa’s food system depends on smallholder farmers who cultivate small plots across the savannahs, river valleys, and deltas. They produce nearly 80% of the continent’s food, yet climate shocks like droughts, floods, and erratic rainfall threaten their livelihoods. In 2020, Acumen launched the Resilient Agriculture Fund (ARAF), the world’s first equity fund designed to protect smallholder farmers from climate risk. ARAF has backed 12 fast-growing agribusinesses and reached over 3 million farmers, with more than 80% reporting improved incomes and yields. Acumen has now raised an additional $90 million, bringing total capital to $148 million. The fund will expand into North Africa to tackle desertification, water shortages, and unpredictable weather where equity-backed climate adaptation capital is scarce. Institutional backers include the Green Climate Fund, FMO, Proparco, Swedfund, and BIO. By blending concessional and commercial capital, ARAF absorbs early-stage risk and makes investment in climate-resilient agriculture possible. The fund aims to reach four million more farmers, pushing its cumulative impact toward seven million.

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