The Agri-food SME Catalytic Financing Mechanism
The Agri-food SME Catalytic Financing Mechanism (ACFM) is a Special Fund housed at the African Development Bank, capitalized by the government of Canada, that provides long-term concessional capital complemented by grant-based technical assistance to catalyze private-sector investment in Africa’s agricultural small and medium-sized enterprises (agri-SMEs).
The Fund co-invests alongside the Bank in two types of institutions: financial intermediaries, such as commercial banks, microfinance institutions and impact funds, and large agribusinesses.
Sustaining Africa’s agricultural value chains and driving development outcomes
ACFM has the following areas of intervention:
De-risk investments into agri-SMEs and smallholder farmers through the disciplined application of blended finance principles
Advance the Feed Africa Strategy and the New African Financial Architecture for Development (NAFAD) as part of the President's Four Cardinal Principles
The operating environment for African Agri-SMEs
Contribution of Agriculture to Africa’s GDP and employment
The agri-sector accounts for approximately 23% of Africa’s GDP and employs about 42% of it’s workforce.
Agri-SME contribution to food security
Agri-SMEs deliver 65% of all food consumed in Africa.
Proportion of women employed in African Agriculture
Across Sub-Saharan Africa, 76% of employed women work in agri-food systems — from farming to food processing and distribution.
Partnership Opportunities with ACFM
The ACFM offers multiple avenues for partnership to support sustainable agricultural development and enhance market impact:
Contributor to the Fund
The ACFM is designed as a multi-donor fund that accepts contributions from the Bank’s member countries and non-sovereign partners. Contributions help expand the Fund's capacity to de-risk the sector and drive impactful interventions.
Implementing Strategic Partners
Financial institutions, impact funds, agribusinesses, agri-fintech intermediaries, and Technical Assistance providers are key strategic partners that support the effective deployment of ACFM resources. These partnerships enable targeted solutions and enhance project outcomes.
Co-Financing and De-risking Partners
The ACFM actively welcomes private and public sector partners to engage in co-financing initiatives. These partnerships are crucial to ensuring that enhanced de-risk solutions are adequately structured in agricultural projects, while supporting market resilience and inclusive growth.
