UNCDF, Bayer Foundation deploy first capital from food systems facility

The United Nations Capital Development Fund and Bayer Foundation have issued the first loans under a new food systems investment vehicle, marking a move to channel concessional capital into agribusinesses in underserved markets.

The two organizations said the Food Systems Innovation Finance Facility has provided $500,000 local-currency loans to Omia Agribusiness Development Group Limited and SokoFresh. The transactions represent the facility’s first deployments after an initial pipeline phase.

The launch comes as traditional development funding tightens. Official development assistance fell 23.1% in 2025, according to OECD data, the sharpest annual decline on record, increasing pressure on public and philanthropic institutions to draw in private capital.

The facility, managed by UNCDF and backed by Bayer Foundation, targets small and mid-sized food and agriculture businesses that often lack access to affordable financing. It uses concessional loans and other risk-sharing structures to support expansion while aiming to attract commercial investors over time.

In northern Uganda, Omia Agribusiness supplies inputs and advisory services and links farmers to markets. The company works with more than 90,000 smallholders and plans to extend services to about 75,000 additional farmers using the new funding, including women and refugees. Part of the financing is tied to meeting those outreach targets.

In Kenya, SokoFresh operates solar-powered cold storage and distribution services aimed at reducing post-harvest losses. The four-year loan is expected to support expansion to more than 5,000 farmers annually and lift farmer incomes by about 10%, according to the company.

UNCDF and Bayer Foundation are seeking additional partners to scale the facility, positioning it as a platform to finance agricultural businesses in markets where commercial funding remains limited. By taking on early risk through concessional funding, institutions aim to demonstrate viable business models and draw in larger pools of capital.