Unlocking private sector investment for climate adaptation in East Africa's rural economies
ARCAFIM has officially been launched at Africa Food Systems Forum 2026. Photo: Equity Group
NDF commits USD 16.2 million for the implementation of the Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM).
Structured by the International Fund for Agricultural Development (IFAD) with Equity Bank Kenya and co-financed by NDF, the Green Climate Fund, the Ministry for Foreign Affairs of Finland, the Government of Denmark and the European Union, the blended finance mechanism ARCAFIM has recently been launched. The programme aims to mobilise USD 200 million over a twelve-year implementation period for climate adaptation investments benefitting smallholder farmers and rural businesses across East Africa. ARCAFIM will operate in Kenya, Uganda, Tanzania and Rwanda, with the objective of improving access to climate adaptation finance for approximately 260,000 smallholder producers and 500 small and medium-sized enterprises (MSMEs). The programme has an emphasis on inclusion, with targets of 50% women and 30% young people among beneficiaries.
“NDF is pleased to have supported ARCAFIM from the very beginning, helping lay the foundations for a mechanism that can unlock greater investments in climate adaptation. Together with our Nordic and international partners, we are proud to reduce investment risk and mobilise financing for smallholder farmers and rural MSMEs. ARCAFIM demonstrates how innovation, partnerships, risk-sharing, and catalytic finance can help accelerate climate adaptation where it is needed most,” says Satu Santala, Managing Director of NDF.