bis

Swiss Investment Firm Raises $106 Million to Boost Climate-Smart Agriculture in Asia-Pacific, Latin America, and Africa

25 Jul 2023


The interconnections among climate change, food security, and agricultural practices highlight the necessity for cooperative efforts involving farmers, policymakers, and researchers to address this complex issue.

According to the BIS Research report on the climate-smart agriculture market, farmers may face financial hurdles when adopting climate-smart agriculture practices due to the substantial initial expenses related to acquiring new technologies and infrastructure. 

Thus, a Swiss impact investor firm, responsAbility, secured funding for its climate-smart agriculture (CSA) and food fund to fight against the financial barrier. 


Here’s the Complete Story
Swiss impact investor responsAbility successfully raised $106 million for its climate-smart agriculture and food fund on June 22, 2023. The fund aims to make strategic investments in Asia-Pacific, Latin America, and Africa region, targeting initiatives that promote sustainable agricultural practices and address food security challenges in these regions.

In an official statement, responsAbility announced the commitments from several prominent organizations. Global Affairs Canada, the Dutch Entrepreneurial Development Bank (FMO), the Danish Investment Fund for Developing Countries (IFU), Visa Foundation, Calvert Impact Capital, Bank of America, and Ceniarth have all pledged their support to the fund. 

responsAbility, in collaboration with the Consultative Group for International Agricultural Research (CGIAR), has introduced a private debt strategy. Kreditanstalt für Wiederaufbau (KfW) acts as the anchor investor for this initiative, while the U.S. International Development Finance Corporation (DFC) serves as the guaranteed provider.

With the aim of addressing the substantial annual funding requirement of $350 billion for food system transformation and catering to investor interest, responsAbility has developed the solution to cater to the requirements of CSA.



Central Objective of the Investment
responsAbility's climate-smart agriculture and food fund represents a strategic approach to tackle the complex challenges faced by the agricultural sector in these regions. By mobilizing substantial financial resources and leveraging the expertise of multiple stakeholders, the responsibility aims to drive positive change and foster sustainable agricultural practices that are resilient to climate change. 

It seeks to make a meaningful impact by supporting innovative projects and initiatives that contribute to increased productivity, enhanced food security, and improved livelihoods for farmers in Asia-Pacific, Latin America, and Africa regions.

Its primary objective is to offer long-term financing to pioneering agribusinesses in Asia-Pacific, Latin America, and Africa regions. 

Thus, the aim of this funding is to minimize food loss and foster climate resilience within the value chains of the enterprise.

Conclusion
The successful fundraising efforts by responsAbility and the commitment of the notable organizations demonstrate a growing recognition of the urgent need for investment in climate-smart agriculture. By combining financial resources, expertise, and global partnerships, the fund aspires to play a crucial role in catalyzing sustainable agricultural development and addressing the pressing challenges in the agriculture industry. 

Interested to know more about the developing technologies in your industry vertical? Get the latest market studies and insights from BIS Research. Connect with us at [email protected] to learn and understand more. 

 
 
 
 

OUR CLIENTS