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
Financing opportunities for cocoa processing in Côte d’Ivoire
11/2025
Côte d’Ivoire is the world’s leading producer and processor of cocoa beans. Its processing capacity now surpasses that of the Kingdom of the Netherlands, which until recently had held the top position. The government is continuing to encourage investment in local cocoa bean processing, which could account for 70 to 80 percent of national production by 2030. This study examines the prospects for investment in primary cocoa processing and the financing needs this objective entails.
Investing in people for better agrifood jobs
10/2025
The FAO Investment Centre connects these dimensions by ensuring physical and financial investments are matched with investments in people. It integrates human capital and job creation into operations, aligning skills with market demand and connecting growth with inclusion. This work draws on FAO’s technical expertise and data, and the Centre’s investment experience in over 120 countries – aligned with FAO’s Four Betters.
FAO Investment Centre - 2024 at a glance
06/2025
FAO is intensifying its efforts with financing partners to crowd in public and private investment for a more food-secure, resilient and sustainable future for all.
Agrifood systems in the voluntary carbon market: Status and prospects
04/2025
This report constitutes the first global assessment of the agrifood sector in the voluntary carbon market (VCM), which is where carbon credits are issued, bought and sold in the private sector.
Supporting development finance institutions financing private agrifood investments
11/2024
The Investment Centre acts as a bridge between countries and financing partners to create the enabling conditions for greater public and private investment to accelerate the transformation to more sustainable agrifood systems.