GAFSP Launches $75M Investment Window to Support Smallholder Farmers and MSMEs in Agri-Food Sector

Since its establishment by the G20 in 2010, GAFSP has mobilized over $2.5 billion in donor resources for financing global food and nutrition security.

The Global Agriculture and Food Security Program (GAFSP) has announced the launch of a new $75 million investment window designed to accelerate financial innovations aimed at supporting smallholder farmers and micro, small, and medium-sized enterprises (MSMEs) in the agri-food sector. This initiative seeks to boost food security and agricultural development in low-income countries facing significant challenges.

The new Business Investment Financing Track (BIFT) aims to mitigate risks associated with private investments, facilitating easier access to finance for investment vehicles targeting high-potential yet traditionally underserved segments of the food system. This initiative arrives at a critical time when the global food system is grappling with disruptions in supply chains and increasingly severe weather events driven by climate change.

Since its establishment by the G20 in 2010, GAFSP has mobilized over $2.5 billion in donor resources for financing global food and nutrition security. The BIFT will introduce innovative blended finance solutions to promote transformative agricultural investments, particularly in neglected regions and value chains. The BIFT adds to GAFSP’s existing financing tracks, which focus on strategies and programs in low-income countries, agribusinesses, and producer organizations, collectively benefitting over 20 million people through a global portfolio of 300 projects.

The BIFT is designed to incentivize public-private partnerships, encourage civil society engagement, and bolster co-financing platforms that aggregate funds from a diverse range of investors, including impact investors, asset managers, and banks. These efforts aim to support larger and more impactful programs. To attract private investments, the BIFT will require blended finance solutions that build on strategic public investments in nutritious food value chains. It will also involve non-governmental organizations and leverage various financing instruments such as guarantees, insurance, concessional debt, and equity.

“High-potential agri-MSMEs in lower-income countries are being left behind by financial markets and lack pathways into regional or global markets,” stated James Catto, Director of International Development Policy at the United States Department of the Treasury and Chair of the GAFSP Steering Committee. “The BIFT will deploy systemic solutions tailored to the needs of small producers and early-stage agribusinesses so they can achieve scale and access conventional financing.”

The BIFT pilot program will run through June 2026 and will be implemented in partnership with notable institutions, including the African Development Bank, Asian Development Bank, International Finance Corporation, IDB Invest, and the UN’s International Fund for Agricultural Development (IFAD). The blended finance solutions supported under this pilot will focus specifically on smallholder farmers, producer organizations, MSMEs, and agribusiness start-ups involved in the production or marketing of nutritious foods for local and regional markets. Historically, these segments and value chains have been overlooked by private investors due to perceptions of being too small, too risky, or offering modest returns.

“BIFT represents a significant advancement in closing the smallholder financing gap by unlocking essential private capital,” said Felipe Dizon, Acting Program Manager of the GAFSP Fund at the World Bank. “This initiative is not just about financing projects; it emphasizes collaboration among a wide range of partners—from government to civil society to the private sector—to create sustainable solutions that enhance food security, climate resilience, and economic opportunities in some of the world’s most vulnerable regions.”