Acumen Pakistan secured a substantial $28 million anchor funding which is part of a larger $90 million Climate Fund from the Green Climate Fund (GCF), focusing on bolstering the resilience of local agribusinesses, according to a press release.
“The initiative is designed as an innovative blended finance facility, with $80 million of equity funding for early and growth stage local agribusinesses,” the statement said.
“An additional $10 million will be deployed in grant funding to provide targeted support to improve the business models of investee companies and build overall climate resilience of the ecosystem in Pakistan.”
The approval of anchor funding from the Green Climate Fund (GCF) is a significant milestone for Pakistan. It’s the country’s first investment fund specifically aimed at helping farmers adapt to climate change in the agriculture sector. This initiative aims to improve the lives of vulnerable farmers who are facing challenges due to climate change.
“We believe this first-of-its-kind climate fund will serve as a paradigm-shifting model for Pakistan,” said Dr Ayesha Khan, Regional Director for Acumen in Pakistan who led the development of the initiative and will serve as its Managing Director.
“By channeling investments into innovative agribusinesses, we will not only unlock financing for a critical sector, but also empower those who bear the brunt of climate catastrophes.”
However, challenges remain, including scalability issues and the complexity of measuring the true impact of climate investments. Acumen’s previous experience with the Acumen Resilient Agriculture Fund (ARAF) in Africa provides valuable insights into addressing these challenges.
Despite the risks involved, Acumen remains committed to navigating the agricultural domain’s augmented sector risk in Pakistan. The aim is to achieve agreed-upon levels of profitability over the next decade, thereby contributing to a more resilient future for all.
Acumen Climate Action Pakistan
The Acumen Climate Action Pakistan (ACAP) Fund aims to establish an $80 million investment fund in Pakistan, focused on climate adaptation.
This fund will provide patient capital to agribusinesses to enhance the climate resilience of vulnerable farmers and their livelihoods.
Additionally, a $10 million Technical Assistance fund will provide targeted support to enhance the viability of business models for investee companies and strengthen the overall climate resilience of smallholder farmers and the ecosystem.
The project aims to showcase a commercially sustainable business model, enhance farmers’ capacity to adapt to climate change and attract investment toward Pakistan’s national climate adaptation priorities in the agriculture sector, which is particularly vulnerable.
With strong support from stakeholders, including the Ministry of Climate Change and various private and public sector entities, Acumen Pakistan is poised to lead the way in addressing climate vulnerabilities in Pakistan’s agriculture sector.