The Bayer Foundation and the United Nations Capital Development Fund (UNCDF) have officially moved from planning to action with the first investments from the Food Systems Innovation Finance Facility (FSIFF).
This initiative targets “missing middle” agribusinesses in underserved markets that are often deemed too risky for commercial banks but have outgrown traditional grants.
Strategic Inaugural Investments
The facility has deployed its first $1 million in catalytic capital through two local currency loans:
- Omia Agribusiness (Uganda): A $500,000 loan to help founder Iganachi Razaki Omia expand services in Northern Uganda. The funding is expected to reach an additional 75,000 smallholder farmers, specifically targeting women and refugee populations with high-quality inputs and training.
- SokoFresh (Kenya): A $500,000, four-year loan to scale solar-powered cold storage. By improving aggregation and storage, SokoFresh directly battles post-harvest loss—a primary driver of food insecurity and lost income for Kenyan farmers.
The Blended Finance Model: Why It Matters
The FSIFF isn’t a typical aid programme. It is a blended finance platform designed to make philanthropic dollars work harder:
- De-risking: By using Bayer Foundation’s philanthropic capital as a “first-loss” layer, the facility makes it safer for private investors to join later.
- Reinvestment: Unlike grants, these loans are repaid, allowing the capital to be recycled into new agribusinesses.
- Leverage: The foundation’s $4.5 million commitment (2025–2027) is projected to catalyze over three times that amount in additional private capital.
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A Global Funding Crisis
The launch of FSIFF arrives during a “perfect storm” for development finance.
Recent OECD data reveals a 23.1% decline in Official Development Assistance (ODA) in 2025, the largest annual drop on record.
“As concessional resources contract, the need to mobilise additional capital into high-impact sectors such as food systems has become increasingly urgent,” the organisations noted in a joint statement.
Expanding the Footprint
While Africa is a primary focus, the facility is global. One of its early pilot signatures included Nilus in Peru, a social enterprise using technology to reduce food waste and lower prices for low-income communities in “food deserts.”
By bridging the gap between charity and commercial investment, Bayer and the UNCDF are creating a blueprint for how the private sector and international bodies can collaborate to achieve SDG 2: Zero Hunger.
Overview
SokoFresh
Provides solar-powered cold storage and logistics services that help farmers reduce post-harvest losses and access markets.
SokoFresh products
- Mobile cold rooms (pay-per-use storage)
- Cold-chain logistics for horticulture and fish
- Farm-to-market aggregation services
Omia Agribusiness Development Group
A farmer-focused agribusiness supporting input supply, aggregation, and market access in Northern Uganda.
Omia Agribusiness Gulu
Based in Gulu, working with smallholder farmers on maize, soya, sunflower, and seed distribution.
Omia Agribusiness products
- Certified seeds
- Agro-inputs (fertilisers, pesticides)
- Grain aggregation and storage services
Bayer Foundation
Bayer Foundation grants
Funds projects in global health, food security, and climate resilience, especially in Africa.
Bayer Foundation scholarship
Supports early-career researchers and students in life sciences, agriculture, and health innovation.
Bayer Foundation application
Applications are submitted online during open calls via the foundation’s portal.
Bayer Foundation Women Entrepreneurs Award 2026
An annual award recognising women-led startups in health and food systems with funding, mentorship, and global exposure.
