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GAFSP, IFAD, AfDB, Others Launch $75M BIFT Initiative to Boost Agriculture in Developing Economies

The Business Investment Financing Track is an initiative of the Global Agriculture and Food Security Program with a window through June 2026

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Business Investment Financing Track, a $75 million initiative window, will benefit smallholder farmers, producer organizations, MSMEs, and agribusiness start-ups in developing economies.

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Birthed under the, Global Agriculture and Food Security Program (GAFSP), the pilot initiative ending June 2026 is in partnership with African Development Bank (AfDB), Asian Development Bank, International Finance Corporation, IDB Invest, and the UN’s International Fund for Agricultural Development (IFAD)

This pioneering initiative aims to bridge the critical financing gap faced by smallholder farmers and agri-food enterprises in low-income countries, potentially transforming millions of lives and local economies.

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GAFSP, a G20-initiated partnership, has invested $2.5 billion in global food security since 2010. Its new Blended Investment Finance Track (BIFT) will support innovative agricultural investments, complementing existing programs that have already benefited 20 million people across 300 projects.

At its core, BIFT will aid nations grappling with food insecurity and limited agricultural development. By strategically derisking private investments, this innovative financing window opens doors for traditionally underserved segments of the food system to access vital capital. In an era where global food systems face unprecedented challenges – from supply chain disruptions to climate change-induced extreme weather events – BIFT emerges as a timely solution for vulnerable economies.

The BIFT aims to foster public-private partnerships, enhance civil society involvement, and strengthen co-financing platforms that gather funds from diverse investors to support impactful programs. It emphasizes blended finance solutions that build on public investments in nutritious food value chains, involve NGOs, and utilize grants, guarantees, and concessional financing to attract private investment.

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“High-potential agri-MSMEs in lower-income countries are being left behind by financial markets and have no way of breaking into regional or global markets. The BIFT will deploy systemic solutions tailored to the needs of small producers and early-stage agribusinesses so they can achieve scale and tap into conventional financing.” said James Catto, Director of International Development Policy at the United States Department of the Treasury and Chair of the GAFSP Steering Committee.

Felipe Dizon, Acting Program Manager of the GAFSP Fund at the World Bank also weighed in on the importance of the initiative. “BIFT is a significant step forward in addressing the smallholder financing gap by unlocking much-needed private capital,” he said

Additionally, he summarized the goal of the initiative, “This is not just about financing projects; it is about working with a range of partners, from government to civil society to the private sector, to create long-lasting solutions that improve food security, climate resilience, and economic opportunities across some of the world’s most vulnerable regions.”

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