GAFSP Launches $75 Million Fund to Support Smallholder Farmers and Agri-Startups

The Global Agriculture and Food Security Program (GAFSP) has introduced a new USD 75 million investment initiative aimed at enhancing financial innovations for smallholder farmers and micro, small, and medium-sized enterprises (MSMEs) in the agri-food sector. This initiative, known as the Business Investment Financing Track (BIFT), seeks to boost food security and agricultural development in low-income countries by making it easier for private investors to mobilize additional funds in traditionally underserved segments of the food system.

The launch of BIFT is timely, as the global food system faces challenges such as supply chain disruptions and the increasing impact of climate change. GAFSP, a multilateral partnership platform established by the G20 in 2010, has so far deployed more than $2.5 billion to support global food and nutrition security. The BIFT, part of GAFSP’s broader strategy, focuses on promoting transformative agricultural investments through blended finance solutions, especially in underfunded regions and value chains.

The BIFT will incentivize public-private partnerships and foster civil society engagement, helping to pool resources from impact investors, banks, and asset managers. This aggregated funding will support larger-scale programs, aiming for more substantial outcomes. The track focuses on strategic public investments in nutritious food value chains, collaboration with non-governmental organizations, and the use of financial instruments such as concessional debt and equity to attract private investment.

Running until June 2026, the BIFT pilot will operate in partnership with organizations such as the African Development Bank, Asian Development Bank, and the International Finance Corporation. Its focus will be on smallholder farmers, MSMEs, and agribusiness start-ups involved in nutritious food production and marketing, sectors often overlooked by private investors due to perceived risks or low returns.

Through innovative financial solutions, BIFT aims to help these high-potential yet underserved segments scale their operations and gain access to mainstream financing.