Acumen, a U.S.-based nonprofit focused on tackling poverty and climate challenges through innovative investment, has unveiled a $300 million commitment to fund agritech startups targeting climate adaptation across Africa and other emerging markets. The initiative forms part of a broader ambition to mobilize $1.5 billion by 2030 to help smallholder farmers mitigate the effects of climate change.
Jacqueline Novogratz, CEO of Acumen, emphasized the disproportionate impact of climate change on smallholder farmers, who constitute a significant portion of the global agricultural workforce. These farmers, responsible for producing 30% of the world’s food, are among the least equipped to withstand escalating climate shocks.
“Smallholders are disproportionately impacted by climate change, yet we’re not seeing enough climate finance directed toward adaptation,” Novogratz stated in an interview. She added that this initiative positions Acumen among the leading private adaptation investors in emerging markets.
The program aims to bridge the substantial financing gap in the agriculture sector. According to One Acre Fund, a nonprofit that supports small-scale farmers in Africa, $151 billion is needed annually to build climate resilience for agriculture globally, but only $2 billion is currently allocated.
Acumen’s strategy includes setting up two funds in 2024, with one launching in the first quarter and the other by year-end. While specific investors have not been disclosed, Acumen has historically garnered support from entities such as the Green Climate Fund, the IKEA Foundation, and the UK’s Foreign, Commonwealth & Development Office.
The investments will focus on pre-seed, seed, and growth-stage startups across key regions, including West and East Africa, South Asia, and Latin America. The organization plans to support up to 100 startups by 2030, enhancing yields and incomes for an estimated 40 million farmers.
Past successes underline the feasibility of Acumen’s approach. For instance, its investment in Hatch Africa introduced disease-resistant chickens that require less water, while SunCulture, another Acumen-backed company, has deployed solar-powered irrigation solutions to improve water access for small-scale farmers.
SunCulture, headquartered in Nairobi, Kenya, exemplifies the type of innovation Acumen seeks to scale. The startup integrates off-grid solar technology with high-efficiency drip irrigation, enabling smallholder farmers to optimize water usage and reduce costs. Its all-in-one product packages include water pumping systems, lighting, mobile charging, consultation, installation, and training services.
In a recent funding round, SunCulture raised $27 million in Series B financing from notable investors, including InfraCo Africa, Acumen Fund, Reed Hastings, and Eric Schmidt. CEO Samir Ibrahim noted that the funds would be instrumental in expanding operations and enhancing product development to meet growing demand.
The increasing interest in agritech is not limited to Acumen. Other investors, such as India’s Omnivore Capital and Indonesia’s East Ventures, have similarly backed startups leveraging technology to improve agricultural resilience and productivity.
Acumen’s planned investments will cover a diverse range of technologies, from solar-drying systems to bio-digesters that convert manure into cooking fuel and liquid fertilizer. These innovations have the potential to transform farming practices, especially in regions heavily reliant on subsistence agriculture.
By addressing the dual challenges of climate adaptation and food security, Acumen’s initiative could have far-reaching effects. However, its success will hinge on attracting additional investment and building partnerships with governments, development agencies, and private investors.
As climate risks intensify, the need for scalable, sustainable solutions in agriculture has never been more urgent. Acumen ’s $300 million commitment for agritech startups operating in emerging markets, including Africa, represents a significant step forward in closing the adaptation financing gap and empowering smallholder farmers to thrive in a changing climate.