Morocco secures priority spot in $132 million climate resilience fund

Saturday 21 June 2025 - 08:50

By: Dakir Madiha

Morocco secures priority spot in $132 million climate resilience fund

Morocco has been named one of the five focus countries for the second phase of the Acumen Resilient Agriculture Fund (ARAF II), a $132 million venture capital initiative designed to bolster climate resilience among small-scale farmers. This marks a significant step in Morocco’s commitment to sustainable and technologically advanced agriculture.

ARAF II: Advancing climate-resilient agriculture

Launched as a follow-up to its successful predecessor, ARAF II aims to deliver measurable benefits to vulnerable farming communities while addressing climate, financial, and social risks. Over its 12-year lifespan, including a six-year investment phase, the fund will channel resources into innovative agricultural enterprises across Morocco, Côte d’Ivoire, Egypt, Ghana, Nigeria, and Uganda.

The funding allocation will depend on the quality and scope of projects submitted by local businesses, with a strong focus on solutions that enhance productivity, income stability, and climate adaptation.

Morocco’s agricultural innovation focus

Moroccan agricultural and para-agricultural companies will benefit from targeted investments across three key areas:

- Aggregation platforms: These platforms will integrate services such as climate-resistant farming inputs, access to credit, farmer training, and guaranteed purchase agreements to stabilize incomes.

- Digitalization: ARAF II will support businesses developing ICT solutions to connect farmers with suppliers, provide real-time weather updates, training modules, and market price data.

- Financial innovation: Companies offering affordable credit, savings products, and insurance for weather, livestock, and yields will also receive support to diversify farmers' income streams and improve resilience.

This strategic approach aligns with Morocco's broader push for sustainable and inclusive agriculture, leveraging digital tools and financial accessibility to transform traditional practices.

A long-term vision for impact

ARAF II aims to directly and indirectly impact nearly 20 million beneficiaries across its six target countries by the end of its funding cycle. The fund’s blended finance model prioritizes adaptation and climate resilience for smallholder farmers, focusing on ecosystem-enabling businesses and innovative solutions to strengthen agricultural value chains.

By fostering partnerships with local enterprises and integrating digital and financial tools, Morocco is reinforcing its leadership in sustainable agricultural practices. The fund represents a critical opportunity to boost food security, enhance productivity, and provide long-term stability for farming communities in Africa.