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
FAO Investment Centre - 2023 at a glance
07/2024
FAO, through its Investment Centre, works with partners to provide tailored, scalable investment and finance solutions to help countries achieve better, more sustainable outcomes. This latest edition looks at the Centre’s achievements in 2023 while also identifying priority areas for the coming years.
Understanding microfinance interest rates in agrifood
07/2024
Interest rates have been a contentious issue in microfinance for many years. While higher interest rates for microloans are often justified by the underlying costs of making small loans in rural areas, this is not always the case.
Pathways to profit: Experimental evidence on agricultural technology adoption
10/2023
This brief focuses on the profitability of adopting technology for farmers and small- and medium-sized enterprises (SMEs) and examines the financial sustainability of these investments over time. The evidence presented here can help researchers and policymakers better understand farmer characteristics and favourable conditions for technology adoption, identify constraints inhibiting adoption, and draw lessons to replicate or scale successful policies around technology adoption in agriculture.
FAO Investment Centre - 2022 at a glance
03/2023
FAO is committed to helping countries achieve a healthier, more sustainable future. That means finding the right combination of policies, innovations and public and private investment to help them realize the promise of the four betters – better production, better nutrition, a better environment and a better life for all.
Evolution of food e-commerce during the COVID-19 pandemic
03/2023
The brief provides policy recommendations and identifies strategies and key areas of investment that are required for the sustainable development of FFV e-commerce. Governments, particularly urban authorities, must develop and promote a conducive institutional, regulatory and business environment to maximize e-commerce opportunities.