Open Society Foundations Commits $10 Million to Smallholder Farmers

Open Society Foundations Commits $10 Million to Smallholder Farmers

The Open Society Foundations has announced a $10 million commitment to the InsuResilience Investment Fund in support of smallholder farmers exposed to climate-related risks.

Awarded through the Soros Economic Development Fund, the foundation's impact investing arm, the funding is expected to reach a hundred thousand smallholder farmers globally, with a focus on those who are particularly exposed to the risk of crop or livestock loss due to climate change, as well as flooding, drought, and other natural catastrophes. To be managed by Blue Orchard, the world's first commercial manager of microfinance debt investments, the fund will invest in companies that offer affordable insurance products for smallholder farmers and microenterprises, as well as in technology platforms that facilitate the creation and distribution of insurance products.

The fund is part of a broader effort, the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions, launched in 2017 by the G20 group of industrialized nations to increase resilience among the poorest and most vulnerable people, with a particular focus on climate change risk.

"The InsuResilience Investment Fund is the only entirely private sector initiative within this broader effort to expand affordable insurance to those who are most at risk from the threat of climate change," said SEDF director of investments Catherine Cax. "We hope to contribute to a success story that will serve as a catalyst to bring other private sector investment into this critical area. While initiated before COVID-19, this investment speaks to the moment by supporting vulnerable communities that are already disproportionally at risk."

(Photo credit: CIAT)

"Open Society Foundations Support Smallholder Farmers Facing Climate Risk." Open Society Foundations Press Release 05/13/2020.