{"id":41810,"date":"2021-10-03T16:38:31","date_gmt":"2021-10-03T16:38:31","guid":{"rendered":"https:\/\/www.climatepolicyinitiative.org\/?post_type=cpi_publications&#038;p=41810"},"modified":"2026-04-15T23:18:26","modified_gmt":"2026-04-15T23:18:26","slug":"the-smallholder-resilience-fund","status":"publish","type":"cpi_publications","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/publication\/the-smallholder-resilience-fund\/","title":{"rendered":"The Smallholder Resilience Fund"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">About<\/h2>\n\n\n\n<p>Africa\u2019s smallholders represent the largest climate-vulnerable population on the planet. Their livelihood is entirely reliant on the environment, extremely vulnerable to even minor changes in temperature or rainfall. As a result, climate change threatens to have devastating humanitarian and ecological consequences.<\/p>\n\n\n\n<p>Building climate resilience for these farmers requires a massive improvement in Africa\u2019s agricultural value chains. Adopting climate-smart, high-value crops improves smallholder resilience; however, underfinanced value chains limit their access to the inputs and markets they need to shift away from staple crops that are vulnerable to climate change. Commercial banks see African agricultural SMEs as too risky, driving a USD 65 billion investment gap that prevents best-in-class SMEs from emerging and scaling.<\/p>\n\n\n\n<p class=\"is-style-highlight\"><strong>The Smallholder Resilience Fund (SRF)<\/strong>&nbsp;is a&nbsp;blended investment fund and supporting venture studio that deploys synchronized investments and technical assistance across entire agricultural value chains of high-value, climate-smart crops to support smallholder farmers.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Smallholder Resilience Fund\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/2fm7prCnEx0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">INNOVATION\u00a0<\/h3>\n\n\n\n<p>A value chain is only as strong as its weakest link; thus, the SRF will address multiple market failures simultaneously.&nbsp;&nbsp;<\/p>\n\n\n\n<p>SRF\u2019s&nbsp;<strong>synchronized approach<\/strong>&nbsp;will&nbsp;increase&nbsp;capacity at each link of a given value chain and create profitable opportunities for smallholders as they transition to climate-resilient crops. The approach will consist of:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Aggregating smallholder production via One Acre Fund\u2019s client base and rural infrastructure.&nbsp;&nbsp;<\/li><li>Deploying capital to established SMEs in the&nbsp;value&nbsp;chain, alongside technical assistance to de-risk investments.&nbsp;&nbsp;<\/li><li>Where investment-ready SMEs do not exist, design and launch new SMEs via a venture studio to fill market gaps.&nbsp;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">IMPACT&nbsp;&nbsp;<\/h3>\n\n\n\n<p>Improved value chains will expand&nbsp;smallholder&nbsp;access to quality inputs, training, processing, and market opportunities for high-value and climate-resilient crops. These crops restore nutrients into depleted soils and enable farmers to achieve&nbsp;<strong>sustainable yields and profits<\/strong>, bolstering their resilience to climate change. Further, the millions of new trees planted&nbsp;via&nbsp;the SRF will&nbsp;<strong>sequester CO<\/strong><strong>2<\/strong>, helping to mitigate climate change.&nbsp;<\/p>\n\n\n\n<p>In the pilot phase, the SRF seeks to prove its ability to de-risk the Rwanda avocado value chain and thereby encourage more&nbsp;private sector&nbsp;investments into SMEs in subsequent years.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>\u201cBy partnering with the Lab, One Acre Fund sees an opportunity to de-risk and attract value chain investments that will enable mass numbers of smallholders to achieve higher incomes and greater climate resilience. One Acre Fund also hopes to establish a new precedent for successful and replicable private investment opportunities in African agriculture\u201d<\/em><\/p><cite><em>Eric Pohlman, Rwanda Country Director, One Acre<\/em>&nbsp;Fund<\/cite><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">DESIGN<\/h3>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2021\/09\/Smallholder-Resilience-Fund_Instrument-Mechanics.png\" alt=\"\" width=\"1463\" height=\"844\"><\/p>\n\n\n\n<p id=\"caption-attachment-8273\"><a href=\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2021\/09\/Smallholder-Resilience-Fund_Instrument-Mechanics.png\">Click here for image full size<\/a><\/p>\n\n\n\n<p>The synchronized investment strategy ensures coordination between SMEs along a value chain, which also reduces investment risk. It also addresses each market gap to ensure that farmers have access to the inputs and markets they need to profitably adopt climate-resilient crops.&nbsp;<\/p>\n\n\n\n<p>Targeted SMEs include input suppliers, processing companies, supermarkets, and exporters. The SRF will target SMEs that require between USD 0.25-2 million, offering a combination of equity, working capital, mezzanine debt, and senior debt.&nbsp;<\/p>\n\n\n\n<p>New investment-ready businesses will be launched from an agri-SME venture studio to fill value chain gaps, such as marketing smallholder produce to international buyers that&nbsp;demand&nbsp;sustainably and ethically sourced products.&nbsp;<\/p>\n\n\n\n<p>To ensure farmers remain the ultimate beneficiaries, the fund will only invest in SMEs that can obtain premium pricing for crops and&nbsp;pay&nbsp;fair prices&nbsp;to farmers.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Smallholder Resilience Fund (SRF)\u00a0is a\u00a0blended investment fund and supporting venture studio that deploys synchronized investments and technical assistance across entire agricultural value chains of high-value, climate-smart crops to support smallholder farmers<\/p>\n","protected":false},"author":185,"featured_media":41726,"template":"","format":"standard","meta":{"_acf_changed":false},"programs":[395],"regions":[5],"topics":[1199,842,238,1172],"collaborations":[],"class_list":["post-41810","cpi_publications","type-cpi_publications","status-publish","format-standard","has-post-thumbnail","hentry","programs-global-innovation-lab-for-climate-finance","regions-africa","topics-finance","topics-financial-innovation","topics-private-finance","topics-sustainable-agriculture"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Smallholder Resilience Fund - CPI<\/title>\n<meta name=\"description\" content=\"The Smallholder Resilience Fund (SRF)\u00a0is a\u00a0blended investment fund and supporting venture studio that deploys synchronized investments and technical assistance across entire agricultural value chains of high-value, climate-smart 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