Innovative Finance
The annual unmet financing needs across agrifood systems are enormous, particularly for small-scale farmers, small and medium enterprises and farmer organizations in developing countries. These amounts do not even include the additional funding needed each year to sustainably transform the world’s agrifood systems.
Innovative financing solutions – such as impact investing, fintechs, blended finance, other de-risking instruments and carbon finance – 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.
FAO’s portfolio of climate-related financing projects is also growing, as are efforts to align investments and planning with the Paris Agenda, helping countries and financiers meet their climate commitments.
The Centre is working with countries and partners to close the digital divide and introduce more digital solutions – like fintechs, mobile payments, weather-based insurance – that can make a difference in the agrifood sector, especially for small-scale producers.
Initiatives
Latest stories
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...
New book traces the FAO Investment Centre’s evolution over its first 60 years
19/12/2025
For over six decades, the FAO Investment Centre has helped countries invest in agrifood systems to reduce hunger, poverty and malnutrition and advance...
Lessons learned on boosting private agrifood investments in Africa by Development Finance Institutions
18/12/2025
The FAO Investment Centre co-organized and moderated the Development Finance Institutions (DFI) Forum with the African Agri Council in Cape Town, South...
A look at financing opportunities for primary cocoa processing in Côte d’Ivoire
11/12/2025
The European Union, Côte d'Ivoire's leading trading partner, asked the FAO Investment Centre for assistance in estimating the country’s current and...
Latest publications
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.
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.