ACUMEN RESILIENT AGRICULTURE FUND,
Who is our client
Acumen Resilient Agriculture Fund (“ARAF” or “Fund”) will be a fund that provides equity & mezzanine products and technical support to early-stage and early-growth agribusinesses. In turn, these businesses provide climate resilience solutions to smallholder farmers in East and West Africa.
ARAF is established to support smallholder farmers to enhance their livelihoods and climate resilience. It will invest in the following types of companies: • Aggregators: companies that provide bundled solutions such as climate resilience inputs and/or affordable credit bundled with extension services or access to markets; • Agri Tech businesses: companies that provide digital solutions such as an online market place that connects farmers with input providers and/or offer extension support to improve farmer productivity; • Financial service providers: companies that provide farmers with access to innovative financial services enabling them to diversify their income base by investing in additional productive assets and making it affordable to them to buy farm inputs.
Why we fund this project
ARAF’s investment strategy to support smallholder farmers in Africa, with a particular focus on climate, fits well with FMO’s strategy to improve the livelihoods of smallholder farmers and the communities they live in.
Environmental and social rationale
The E&S category is B. The potential E&S risks derived from the investments are considered to be low and manageable. ARAF has designed an adequate E&S risk screening process, based on Acumen’s regional and sector experience, and the pre-investment E&S due diligence process is considered to be adequate. ARAF has an adequate post-investment process which will use, among other tools, a context-based data gathering proprietary tool (Lean Data) to provide feedback to ARAF and the investee company on E&S Performance.
|Date||Total FMO financing|
|1/6/2020||USD 5.00 MLN|
- Website client
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 2.50 MLN
- Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)