The short answer
ARCAFIM is a 12-year, $200 million climate adaptation finance mechanism launched on September 4, 2026 at the Africa Food Systems Forum in Kigali. For a Ugandan agribusiness, farmer group or rural MSME, it is a route to capital for investments that reduce climate risk — but it is a loan facility, not a grant, and you access it through approved financial institutions.
What ARCAFIM actually is
The name stands for the Africa Rural Climate Adaptation Finance Mechanism. It is a collaboration between Equity Group and IFAD, built around a $90 million contribution from Equity's own balance sheet matched one-for-one against concessional funding. The Green Climate Fund committed $55 million, with additional backing from Finland, the Nordic Development Fund, Denmark and the European Union. The goal is to treat climate adaptation in rural agriculture as a commercial lending opportunity, not a one-off donor project.
$200M
Total ARCAFIM facility size
Who can access it in Uganda
The facility targets 260,000 smallholder farmers and 500 rural MSMEs across Kenya, Uganda, Tanzania and Rwanda, with targets of 50% women and 30% youth participation. In Uganda, you can apply through Equity Bank Uganda branches, microfinance institutions or SACCOs that partner with the program. You do not need to be an Equity customer today, but you will need to meet the credit standards of whichever participating institution you use.
What the loans actually fund
Eligible investments fall into six categories: irrigation, water harvesting, livestock resilience, post-harvest storage, renewable energy, and climate-resilient processing. For a Ugandan farming business, that could mean drip irrigation, on-farm water storage, cold storage for horticulture, solar-powered processing, or improved housing and feeding systems for livestock.
- Irrigation
- Water harvesting
- Livestock resilience
- Post-harvest storage
- Renewable energy
- Climate-resilient processing
If renewable energy is part of your adaptation plan, it helps to understand how zero-upfront solar arrangements compare with financed ownership in Uganda; see Zero-Upfront Solar in Uganda: The dfcu-Sawa Energy Deal Explained.
How the 12-year revolving structure works
The program runs for 12 years. Of the $200 million, $180 million is earmarked for lending and $20 million for technical assistance. Because the loans are expected to revolve over roughly four cycles, the $180 million could support about $266 million in total lending over the life of the facility. In practice, that means early borrowers are expected to repay, which releases capital for later borrowers. For you, the implication is straightforward: this is commercial credit, priced through a bank, MFI or SACCO, and repayment capacity matters as much as the climate logic.
How to apply through Equity Bank Uganda or partner institutions
Start with the financial institution you already use, if it is Equity Bank Uganda or a participating SACCO or microfinance institution. Ask specifically about ARCAFIM-backed climate adaptation lending, not just general agricultural finance. The program's technical assistance is designed to help loan officers structure products around adaptation, so the conversation should focus on the asset you want to finance and how it reduces climate risk. Be prepared to provide financial records, a repayment plan, and a clear description of the investment.
Start with the right conversation
If the first loan officer is not familiar with ARCAFIM, ask to speak with the business banking or agriculture finance team. The facility is new, and branch-level awareness may vary.
What to prepare before you apply
- A clear statement of the climate risk you are addressing
- Cost estimates for the equipment or asset
- Historical cash flow or production records
- A repayment schedule tied to the expected resilience benefit
- Details of any land, water access or collateral
The strongest applications treat the loan as a business investment, not a project handout. IFAD Vice President Gérardine Mukeshimana framed the goal as making rural climate adaptation a viable business line for African financial institutions. The same documentation discipline that makes you competitive in formal bidding also helps here. If your growth plan includes public contracts, review Uganda's e-GP 2.0: What Every Business Must Know Before Bidding in 2026.
We are treating farmers as commercial borrowers, not aid recipients, and building a market, not funding a project.
Questions to ask before you sign
- What is the total cost of credit, including interest, fees and insurance?
- Is the loan denominated in Ugandan shillings or foreign currency?
- What happens if the climate investment underperforms?
- Are technical assistance or advisory services attached?
- How does the participating institution define and verify climate adaptation?
Ask for a written repayment schedule and compare the total outlay with the expected resilience benefit. If the lender cannot explain how the facility's concessional backing translates into your specific terms, ask again before committing.