The Global Agriculture and Food Security Program (GAFSP) announced the second allocation from its new business investment financing tool, mobilizing $21 million in support for smallholder farmers across Rwanda.
GAFSP, a multilateral partnership and financing platform strengthening food security in low-income countries, announced the funding during a side event with the International Fund for Agricultural Development (IFAD) at the Africa Food Systems Forum (AFSF) in Kigali, Rwanda. A $6 million allocation from GAFSP, through the Program’s second-generation private sector financing tool — the Business Investment Financing Track (BIFT) — will unlock a further $15 million in funding from IFAD, the Bank of Kigali and Aceli Africa.
Launched in 2024, the BIFT is a $75 million pilot designed to leverage GAFSP grants and concessional finance to secure matching funding from multilateral development banks and catalyze additional private sector financing for smallholder farmers, producer groups, agribusinesses, and start-ups. This $6 million from GAFSP leveraged an additional 2.5 times investment from IFAD and the private sector.
The funding will finance the Farmers' Organizations Financing Programme – Rwanda (FOFP-R) and is expected to strengthen approximately 215 farmers organizations, providing financing to approximately 172, and benefiting more than 35,000 smallholder farmers, particularly women and youth. The project will target key national agricultural value chains, including maize, rice, cassava, dairy, and horticulture.
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