The Food Securities Fund is an open-ended investment fund that uses an innovative blended finance approach to promote sustainable development through agricultural value chains. It addresses a financing gap by providing working capital to agricultural companies that operate in emerging markets and aggregate produce from farmers, particularly smallholders. By offering loans that cover the entire agricultural cycle, the Fund enables its borrowers to provide increased pre-harvest support to farmers. By making loans conditional to improvements on social, environmental and governance (ESG) performance, the Fund promotes the uptake of sustainable and climate-smart agriculture contributing to the UN Sustainable Development Goals (SDGs) and the Global Environmental Benefits (GEBs).
The development of the Fund was supported by Convergence, the global network for blended finance; the United States Agency for International Development (USAID) through the Bureau for Food Security; the US International Development Finance Corporation (DFC); and others.