The investment will support ARAF II, an impact investment fund managed by Acumen Capital Partners, a wholly owned subsidiary of Acumen.

The fund invests in fast-growing agriculture and food businesses whose products and services improve farmers’ access to markets, financing, agricultural inputs, advisory services, and other tools that increase resilience and productivity.

Swedfund said the investment reflects the growing need for long-term financing that enables African farmers to withstand increasingly frequent climate shocks while improving incomes and food production.

“Climate change is already affecting the livelihoods of millions of smallholder farmers across Africa. Investing in businesses that improve access to markets, finance and agricultural services helps farmers strengthen their resilience, increase productivity and build more stable incomes. That is essential for more resilient food systems,” said Helen Hagos, Investment Director for Food Systems and Strategic Investments at Swedfund.

Smallholder farmers remain the backbone of African agriculture, producing most of the food consumed across sub-Saharan Africa.

However, many continue to face limited access to finance, quality inputs, reliable markets, and climate adaptation solutions, making them particularly vulnerable to droughts, floods, and changing weather patterns.

ARAF II is designed to address these challenges by financing businesses that provide practical services across agricultural value chains.

The fund builds on the performance of the first Acumen Resilient Agriculture Fund, which reached more than 3 million smallholder farmers.

ARAF II aims to extend that impact by supporting approximately 4 million additional farmers across Africa while expanding its geographic reach into new markets.

The fund has attracted backing from several development finance institutions, including FMO, Proparco, BIO, the Green Climate Fund, and the Fund for Agricultural Finance in Africa, reflecting growing investor confidence in climate-focused agricultural financing.

The investment comes as governments, development finance institutions, and private investors seek to mobilize more capital into African agriculture, a sector that employs a large share of the continent’s workforce but continues to face a significant financing gap.

By directing capital toward scalable agribusinesses, ARAF II aims to strengthen agricultural value chains, improve food security, and create more resilient rural economies.

For Africa’s business and investment landscape, Swedfund’s commitment signals continued international confidence in agriculture as a commercially viable sector capable of delivering both financial returns and measurable development outcomes.