Innovative Finance
Financing agrifood systems in developing countries is critical to achieving the 2030 Agenda. Yet the current financing gap amounts to hundreds of billions of USD.
Innovative finance – impact investing, fintechs, carbon finance, blended finance and other de-risking instruments – can help bridge that gap.
The FAO Investment Centre’s advisory team supports partners like the European Commission, the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank to do more and better in the agrifood lending sphere.
Knowledge and evidence-based analysis are key to de-risking investment and improving investment planning. In 2025, the Centre supported the European Union in more than five strategic value chains (including cocoa, cashew, coffee, soy, rice and organic fertilizers) across nine African countries. Joint studies are helping to identify investment opportunities – such as coffee in Uganda, cashew and cocoa processing in Côte d’Ivoire – and potential public-private partnerships.
FAO’s portfolio of climate-related financing projects is also growing, helping countries and financiers meet their climate commitments.
One highlight from 2025 was publication of the first comprehensive global assessment of agrifood systems in the voluntary carbon market. FAO’s Investment Centre and Office of Climate Change, Biodiversity and Environment collaborated with the Alliance of Bioversity International and the International Center for Tropical Agriculture on the report, which looks at the potential to unlock new additional private finance for agrifood systems from companies purchasing carbon credits.
Initiatives
Latest stories
Directions in Investment
What to expect from impact funds investing in agrifood systems across low- and middle-income countries?
10/10/2026
A new report by the FAO Investment Centre, in collaboration with Tameo Impact Fund Solutions, seeks to reduce this knowledge gap through a comparative,...
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Directions in Investment
Sustainability-linked loans and the transition to more sustainable agrifood systems
02/06/2026
Agrifood systems are under growing pressure to reduce greenhouse gas emissions, protect biodiversity, improve water stewardship and ensure more sustainable...
TERRA: expanding access to finance for Kenyan small and medium agrifood companies
01/06/2026
A EUR 30 million credit line from the Italian bank Cassa Depositi e Prestiti (CDP) to Equity Bank Kenya will ease access to finance for small and...
Investment Briefs
The dos and don’ts of blended finance in agrifood systems – advice to mobilize capital for impact via investment funds
23/03/2026
Blended finance – the use of public or philanthropic money to mobilize private investment for sustainable development – quickly gained traction as...
Latest publications
Impact funds in agrifood systems - Lessons from investments in low- and middle-income countries
10/2026
This study addresses this knowledge gap through a comparative, data-driven analysis of 81 food and agriculture impact funds targeting in priority agrifood systems in low- and middle-income countries.
FAO Investment Centre – 2025 at a glance
09/2026
The FAO Investment Centre works with a growing network of partners to help countries invest in agrifood systems to reduce hunger, poverty and malnutrition and advance sustainable development. The Centre integrates the vast technical, analytical and policy expertise from across FAO into its 4+2 solutions, delivering tailored, multidisciplinary support to around 120 countries annually across five geographic service.
Integrating sustainability-linked loans into agrifood finance: Opportunities and challenges
06/2026
This report summarizes the key findings and aims to inform development banks and other financial investors interested in issuing more and higher-quality SLLs to agrifood borrowers. Drawing on data collected in collaboration with the University of Florida, it combines the perspectives of commercial banks and agrifood companies to identify best practices that can be adapted to the specificities of developing economies.
Dos and don’ts of blended finance in agrifood systems: The case of investment funds
03/2026
This paper briefly reviews the definition of blended finance and the characteristics of blended funds in agrifood systems. It then focuses on lessons learned and finally makes recommendations to fund managers and concessional investors, that is, investors expecting a financial return below market rate.
FAO Investment Centre 60 years young 1964–2024
12/2025
The 60-year journey of the FAO Investment Centre tells a remarkable story of technical excellence and trusted partnerships. It also reflects the vision and effort of those who laid its foundations, the dedication of those who worked hard to sustain the Centre over the years, and its ability to adapt and innovate in a rapidly changing world.