IFAD makes landmark investment in impact fund helping rural SMEs
The International Fund for Agricultural Development (IFAD) has invested $9 million (€8.4 million) into the Agri-Business Capital Fund, a blended capital impact fund.
The investment was made possible thanks to a contribution from the Swiss Agency for Development and Cooperatio, and is the first time that IFAD has invested directly into a private sector entity.
IFAD’s investment in the ABC Fund is part of a wider plan to scale up IFAD’s engagement with the private sector and design innovative instruments to help increase investments in rural areas and help the private sector overcome the challenges of investing in small-scale agriculture.
The ABC Fund catalyses blended capital and invests in underserved segments of agribusiness value chains focusing on farmer organizations, financial intermediaries and agribusiness SMEs. The fund also prioritizes climate-smart projects that promote sustainable production.
