#Singapore #Food Systems #Green Climate Fund #Mandala Capital

Mandala Capital Secures Green Climate Fund Approval

Mandala Capital, a notable private equity fund focused on the agricultural and food sectors spanning South and Southeast Asia, proudly announces its recent achievement at the 43rd Board Meeting of the Green Climate Fund (GCF). The GCF has granted official approval for the Mandala Capital SSEA Food Fund, endorsing a significant investment of USD 36 million as the anchor investor in this upcoming USD 250 million blended finance initiative aimed at fostering climate adaptation within the region's agrifood systems.

Addressing the Financing Gap in Agriculture

Agriculture and food systems across South and Southeast Asia are crucial for the economies and sustenance of these regions. Interestingly, agriculture represents 13% of the regional GDP while employing over a third of the total population. However, financing remains a glaring issue. Despite their importance, investments in climate-resilient agricultural practices have been unacceptably low. Furthermore, projected climate change effects could lead to a 10% to 20% drop in crop yields in the coming decades, jeopardizing the livelihoods of millions of smallholder farmers.

Demetrio Innocenti, a Climate and Gender Specialist at Mandala Capital, asserts, "For years, we have been told that mobilizing private finance for climate adaptation is challenging. Today, Mandala Capital and the GCF are proving otherwise. Through the SSEA Food Fund, concessional capital from GCF will unlock millions in private investments, enhancing the resilience of thousands of rural households across three Southeast Asian nations."

Advancing Climate Resilience in Agrifood Systems

With GCF's backing, Mandala Capital is set to attract additional private investments to implement solutions for climate adaptation and fortify value chains that will benefit over 12 million people in South and Southeast Asia. Mr. Joven Balbosa, Undersecretary of the International Finance Group at the Philippines' National Designated Authority (NDA), reflects, "This partnership exemplifies how blended finance can elevate the private sector in climate action, mobilizing investments that bolster food security and enhance climate resilience throughout the Philippines and beyond. We welcome Mandala Capital's initiative to direct a portion of the fund's investment towards local initiatives, supporting innovative small and medium enterprises capable of driving real, scalable impact."

The Mandala Capital SSEA Food Programme aims to invest in viable and scalable companies that are facilitating a shift toward food systems that are both affordable and climate-resilient. It will specifically tackle region-specific challenges such as food wastage, price volatility, malnutrition, low agricultural productivity, and rising protein demand.

A Proven Track Record

Mandala Capital stands out with its 15 years of industry experience, combined with a dedicated team based in South and Southeast Asia, robust strategic alliances, and a pipeline nurtured through enduring relationships. Uday Garg, Founder and Managing Partner of Mandala Capital, remarks, "With our proven track record of successfully exiting 80% of our investments from the initial two funds, we have demonstrated our capability to execute and create value for our investors. The GCF investment reinforces our climate goals and lays down a blended finance framework essential for attracting additional private capital and scaling up transformative adaptation solutions in the agriculture and food sector."

This initiative aligns seamlessly with GCF's strategic vision, aiming to bolster food and income security by investing in SMEs that promote climate-resilient agriculture across Southeast Asia. Kavita Sinha, Director of the Green Climate Fund's Private Sector Facility, supports this, stating that the blended finance model will play a crucial role in mobilizing private capital towards adaptation-focused investments, establishing a sustainable financing approach to build long-term resilience.

In light of GCF's commitment, Mandala Capital is actively raising the remaining funds for its USD 250 million blended finance initiative to further elevate climate adaptation solutions and cultivate more resilient food systems. Interested investors and partners are urged to reach out for further insights and collaboration opportunities.