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Proparco invests USD 12 million in Acumen's ARAF II to strengthen climate-resilient agriculture across Africa

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Smallholder farmer stands in a bountiful field. Photo courtesy of Juhudi Kilimo and Peter Irungu.

Proparco has committed USD 12 million to the Acumen Resilient Agriculture Fund II (ARAF II), a venture capital fund dedicated to supporting innovative agribusinesses that improve the livelihoods of smallholder farmers across Sub-Saharan Africa while strengthening climate resilience and food security.

Building on its investment in ARAF I, Proparco is renewing its commitment through ARAF II, reinforcing its position as one of the fund's principal institutional partners. Managed by Acumen, a leading impact investor, ARAF II provides early-stage financing to high-potential companies addressing critical challenges along agricultural value chains. The fund focuses on businesses that improve access to markets, finance, agricultural services and climate-smart solutions for smallholder farmers, helping them adapt to climate change while increasing productivity and incomes.

Supporting a more resilient agricultural economy

Smallholder farmers produce the majority of food consumed across Sub-Saharan Africa, yet they continue to face limited access to finance, quality inputs, reliable markets and climate-resilient technologies. By investing in early-stage agribusinesses, ARAF II helps close this financing gap while accelerating the development of more sustainable and inclusive food systems.

ARAF has established itself as one of Africa's leading agritech-focused venture capital investors. Since its inception, the fund has reviewed nearly 700 investment opportunities and completed 14 investments across East and West Africa. Through ARAF II, approximately 20 companies are expected to receive financing.

Scaling impact for farmers, jobs and women

Proparco's investment will contribute to supporting companies that directly serve smallholder farmers, promoting more resilient agricultural practices and stronger local value chains. The fund is expected to support the creation or maintenance of more than 2,900 jobs while improving access to essential services for farming communities.

ARAF II has also been qualified under the 2X Challenge, reflecting its strong commitment to advancing women's economic empowerment through its investment strategy.

Building resilient agricultural value chains requires patient capital for innovative businesses that serve smallholder farmers. Through our investment in ARAF II, Proparco is supporting entrepreneurs who are developing practical solutions to strengthen food security, improve farmers' livelihoods and enhance climate resilience across Africa. This investment fully reflects our ambition to foster a more sustainable, resilient and inclusive economy.

Guillaume Barberousse

  • Director of the Investment Department, at Proparco

This investment contributes to Proparco's 2023–2027 Strategy, notably its ambition to invest in a sustainable and resilient economy while reducing inequalities, by supporting inclusive business models that deliver lasting economic, social and environmental impact across Africa.