Acumen Resilient Agriculture Fund II, LP
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
Acumen Resilient Agriculture Fund II (ARAF II) is the successor fund of ARAF I, where FMO invested in 2020. ARAF II is an impact fund that continues the strategy as implemented by ARAF I: targeting high-growth agribusinesses with a focus on climate resilience of smallholder farmers as well as food security in Africa. ARAF II aims to improve smallholder farmer resilience and adaptation to climate change by investing in sustainable agribusiness models, providing multiple services to these farmers at the same time, and in doing so, enhance smallholder farmer productivity, income, and livelihoods, as well as strengthen the resilience of the entire agriculture value chain.
What is our funding objective?
The Fund invests in a high-risk sector where commercial capital is scarce. FMO is an anchor investor in ARAF II and catalyzes other DFIs and impact investors.
Why do we fund this investment?
100% of FMO’s investment is labelled as Green as it supports activities that contribute to climate mitigation and climate adaptation, contributing to SDG 13, in line with FMO’s methodology to determine the green finance attribution. Furthermore, 100% of FMO’s investment is labelled as Reducing Inequalities as it supports activities that contribute to Inclusive growth contributing to SDG 10.
What is the Environmental and Social categorization rationale?
The ARAF II priority pipeline contains a limited number of higher-risk (category B or B+) opportunities. ARAF II has no mandate to onboard E&S category-A investments. Targeting early- and growth-stage companies mainly into Digital Platforms, Financial Service Provider Platforms and Aggregator Platforms, risk exposure will be limited. Following the EDFI Harmonized E&S categorization for fund investments, ARAF II could turn out to be an E&S category-B or category-B+ fund, depending on the actual amount of B+ opportunities materialized in the final portfolio. Most likely, the initial years of the Fund 's life will show a cat-B profile, until more than two B+ assets are onboarded. FMO will apply a precautionary approach and manage the Fund as a B+ until a fully committed portfolio triggers a lower E&S risk categorization.
- Website customer/investment
- https://arafund.com/
- Region
- Africa
- Country
- Kenya
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 5/23/2025
- Effective date
- 7/6/2026
- Total FMO financing
- USD 12.50 MLN
- Funding
- 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) - B+