Acumen Resilient Agriculture Fund (ARAF)

Overview

The Acumen Resilient Agriculture Fund (ARAF) is a $58 million impact fund dedicated to improving the climate resilience of smallholder farmers in Africa. Sponsored by Acumen and anchored by the Green Climate Fund, ARAF invests in early and early-growth stage agribusinesses that help farmers adapt to climate change, aiming to impact 10 million lives across East and West Africa. The fund is managed by Acumen Capital Partners, a wholly owned subsidiary of Acumen. ARAF focuses on sectors such as agriculture, energy, and education, providing equity and quasi-equity investments ranging from $300,000 to $4 million. The fund seeks to support agribusinesses with business models that enable smallholder farmers to anticipate, weather, and recover from climate events, resulting in increased yields and incomes. ARAF's portfolio includes companies operating in Kenya, Uganda, Nigeria, and Ghana. Since its inception, ARAF has invested in several companies, impacting over 2 million farmers in the region. The fund's partners include the Dutch entrepreneurial development bank (FMO), the Soros Economic Development Fund, the French development institution PROPARCO, the Children’s Investment Fund Foundation, IKEA Foundation, Global Social Impact, and other respected investors and funders. ARAF's initiatives have already impacted more than 2 million farmers in the region, with 90% reporting increased income and improved quality of life. ARAF's investment strategy includes a technical assistance facility to support its investees with business development support, climate adaptation interventions, and ESG reporting. The fund is committed to transparency in its operations and seeks to share relevant information with stakeholders. ARAF also has a grievance mechanism in place to address any concerns or complaints about its investing activities.