ARAF II
Introduction
Swedfund invests USD 12 million in Acumen Resilient Agriculture Fund II (ARAF II).
Read more in our press release:
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Sector
Food systems
In the Food Systems sector, we contribute to increased food production, less waste during production and increased sustainability throughout the value chain.
Value creation
Impact
The investment contributes to increased climate resilience, productivity and incomes among smallholder farmers in Africa by supporting agribusinesses that improve access to agricultural inputs, markets, financial services and climate-smart solutions. The investment is expected to strengthen more resilient and inclusive agricultural value chains and support women’s economic empowerment through the fund’s gender-lens investment approach.
Additionality
The investment is financially additional by providing growth capital to early-growth agricultural businesses operating in underserved markets across African DAC 1-3 countries. The investment is value additional through active engagement with the fund manager to strengthen impact management, climate resilience, gender equality and sustainability practices across the portfolio.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is Medium-High Risk (Fund-B+) based on potential environmental and social risks and impacts within the portfolio, as well as contextual risks in target markets, including climate risk, human rights, GBV/SEAH and client protection.
ESG Mitigation Measures
Swedfund is supporting the fund manager to further strengthen its environmental and social management system (ESMS). Prioritised areas include human rights, gender equality, biodiversity-related risks and impacts, and sustainability management practices across the portfolio.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1 and 2 are applicable for the activities funded by Swedfund’s investment.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.
Other investments within
Food Systems