The investment is designed to help businesses expand access to markets, finance, agricultural services, and climate-smart technologies while improving food security and helping farming communities adapt to climate change.

The commitment builds on Proparco’s backing of the first ARAF fund and reinforces its role as one of the fund’s leading institutional investors.

Managed by impact investor Acumen, ARAF II targets high-potential businesses developing commercial solutions to address gaps across agricultural value chains.

These companies are expected to help farmers increase productivity, improve incomes, and strengthen resilience against increasingly volatile weather conditions.

The fund expects to invest in around 20 companies, providing much-needed growth capital to businesses operating in one of Africa’s most underfinanced sectors.

According to Proparco, the first ARAF fund reviewed nearly 700 investment opportunities and completed 14 investments across East and West Africa, establishing itself as a leading venture investor focused on agricultural innovation.

“Building resilient agricultural value chains requires patient capital for innovative businesses that serve smallholder farmers,” said Guillaume Barberousse, Director of the Investment Department at Proparco.

“Through our investment in ARAF II, Proparco is supporting entrepreneurs who are developing practical solutions to strengthen food security, improve farmers’ livelihoods and enhance climate resilience across Africa. This investment fully reflects our ambition to foster a more sustainable, resilient and inclusive economy.”

Agriculture remains one of Africa’s largest economic sectors and the primary source of income for millions of households, yet early-stage agribusinesses continue to face significant financing constraints.

Smallholder farmers produce most of the food consumed across sub-Saharan Africa but often lack reliable access to finance, quality inputs, modern technologies, and stable markets.

Funds such as ARAF II aim to close that financing gap by supporting companies that deliver commercially viable services directly to farming communities.

Beyond financing businesses, ARAF II is expected to generate wider economic benefits. Proparco says the fund will help support or sustain more than 2,900 jobs while strengthening local agricultural value chains.

The fund has also qualified under the 2X Challenge, reflecting its commitment to advancing women’s economic empowerment through its investment strategy.