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
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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...
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...
Latest publications
Integrating sustainability-linked loans into agrifood finance: Opportunities and challenges
06/2026
This report summarizes the key findings and aims to inform development banks and other financial investors interested in issuing more and higher-quality SLLs to agrifood borrowers. Drawing on data collected in collaboration with the University of Florida, it combines the perspectives of commercial banks and agrifood companies to identify best practices that can be adapted to the specificities of developing economies.
Dos and don’ts of blended finance in agrifood systems: The case of investment funds
03/2026
This paper briefly reviews the definition of blended finance and the characteristics of blended funds in agrifood systems. It then focuses on lessons learned and finally makes recommendations to fund managers and concessional investors, that is, investors expecting a financial return below market rate.
FAO Investment Centre 60 years young 1964–2024
12/2025
The 60-year journey of the FAO Investment Centre tells a remarkable story of technical excellence and trusted partnerships. It also reflects the vision and effort of those who laid its foundations, the dedication of those who worked hard to sustain the Centre over the years, and its ability to adapt and innovate in a rapidly changing world.
Financing opportunities for cocoa processing in Côte d’Ivoire
11/2025
Côte d’Ivoire is the world’s leading producer and processor of cocoa beans. Its processing capacity now surpasses that of the Kingdom of the Netherlands, which until recently had held the top position. The government is continuing to encourage investment in local cocoa bean processing, which could account for 70 to 80 percent of national production by 2030. This study examines the prospects for investment in primary cocoa processing and the financing needs this objective entails.
Investing in people for better agrifood jobs
10/2025
The FAO Investment Centre connects these dimensions by ensuring physical and financial investments are matched with investments in people. It integrates human capital and job creation into operations, aligning skills with market demand and connecting growth with inclusion. This work draws on FAO’s technical expertise and data, and the Centre’s investment experience in over 120 countries – aligned with FAO’s Four Betters.