Bayer Foundation commits $4.5 million to UNCDF food security facility

Bayer Foundation and the United Nations Capital Development Fund (UNCDF) have launched a joint investment initiative aimed at tackling food insecurity and supporting sustainable agriculture in developing economies.

The new Food Systems Innovation Finance Facility will receive $4.5 million from Bayer Foundation between 2025 and 2027. Managed by UNCDF, the facility will deploy concessional and catalytic financing to small and medium enterprises working in food systems across Africa, Asia Pacific, and Latin America.

The initiative is designed to mobilize additional private capital by de-risking early-stage ventures in high-risk markets. According to the partners, the structure allows philanthropic funds to be recycled, enabling Bayer Foundation’s contribution to generate multiple rounds of investment. The facility is projected to attract more than three times the initial funding from future investors.

“The Food Systems Innovation Finance Facility represents a transformative approach to tackling hunger and malnutrition,” said Chitkala Kalidas, executive director of Bayer Foundation. “Philanthropic capital will be recycled and can benefit multiple social enterprises in the fight against hunger.”

UNCDF said the partnership highlights its role within the UN system in channeling private and philanthropic capital into underserved markets. “By de-risking local businesses, we are paving the way for other investors to follow,” said Pradeep Kurukulasuriya, executive secretary of UNCDF.

The first investment under the facility has been signed with Nilus Peru, a Latin American social enterprise developing technology to provide affordable, nutritious food to low-income communities in so-called food deserts.

The initiative also seeks to create a network of like-minded investors and development partners interested in supporting food security. Other foundations are invited to participate in the facility.

Bayer Foundation, the philanthropic arm of Bayer, focuses on health and food security initiatives, while UNCDF specializes in mobilizing capital for high-risk markets, particularly in least developed countries.