The global climate crisis has made it impossible to separate the conversation about food from that of sustainability.
Agriculture is both a victim and a driver of climate change: it is severely impacted by shifting weather patterns while contributing close to a third of greenhouse gas emissions through land-use change, livestock production, and energy-intensive farming methods.
The solution is not only to reform how food is produced but also to rethink how it is financed. Without mobilising sufficient financial resources, the transformation of agri-food systems will remain an aspiration rather than an achievable goal.
Financing agri-food systems is not just about ensuring that farmers have access to credit or subsidies. It is about deliberately aligning financial flows with climate goals, enabling the transition toward practices that are more resilient, equitable, and sustainable.
This means investing in innovations, supporting smallholder farmers, and creating financial mechanisms that bridge the gap between short-term needs and long-term sustainability.
Globally, food systems are responsible for about 34% of greenhouse gas emissions.
Deforestation to clear land for crops and livestock, methane emissions from cattle, and the heavy use of fertilisers all compound the climate problem.
At the same time, agriculture is highly vulnerable to climate shocks.
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Droughts, floods, and shifting rainfall patterns threaten yields, disrupt supply chains, and intensify food insecurity.
For countries in Africa, including Zimbabwe, the dual challenge of producing enough food while building climate resilience is even more pressing.
In this context, financing becomes a powerful lever for change.
Properly directed investments can drive a shift away from carbon-intensive practices and incentivise climate-smart alternatives such as agroecology, conservation agriculture, precision irrigation, and renewable energy use in food systems.
However, current levels of funding fall far short of what is needed. Reports from the UN’s Food and Agriculture Organisation (FAO) and the Climate Policy Initiative suggest that only a small fraction of climate finance currently reaches the agriculture sector, despite its central role in both mitigation and adaptation.
One of the biggest barriers to transforming agri-food systems is the financing gap.
Smallholder farmers, who produce a significant share of the world’s food, often lack access to credit and insurance.
Commercial banks view agriculture as too risky due to climate unpredictability, inadequate collateral, and fluctuating commodity prices. Public funding is frequently insufficient and donor support fragmented.
Meanwhile, private investors tend to focus on high-return ventures in other sectors, leaving agriculture undercapitalised.
This imbalance undermines climate goals. If farmers cannot access affordable financing, they remain locked in traditional practices that degrade the environment and increase vulnerability to climate change.
Bridging this gap requires innovative financial mechanisms.
Blended finance, which combines public and private funds to reduce risks for investors, has shown promise in attracting investment to agriculture.
Green bonds, carbon credits, and results-based financing schemes could also help mobilise resources for climate-smart agriculture.
For example, rewarding farmers for ecosystem services such as carbon sequestration or soil restoration not only sustains livelihoods but also contributes directly to climate targets.
To meet global climate objectives, financial flows must be redirected from harmful to sustainable practices.
This includes phasing out subsidies for chemical fertilisers and fossil fuel–intensive farming while scaling up incentives for regenerative practices.
Governments play a pivotal role here: national budgets, development banks, and policy frameworks can all create enabling conditions for sustainable investments.
At the same time, international climate funds such as the Green Climate Fund must prioritise agri-food systems more deliberately.
Currently, energy and infrastructure dominate climate finance portfolios, leaving agriculture marginalised despite its outsized impact.
By targeting food systems, these funds could simultaneously address mitigation, adaptation, and food security—a rare triple win.
Private sector engagement is equally important. Agribusinesses, retailers, and financial institutions can support sustainable value chains by investing in climate-resilient sourcing, reducing food waste, and offering financing packages tailored to smallholder needs.
For example, contract farming arrangements that guarantee markets and provide upfront credit for inputs can empower farmers to adopt more sustainable methods without shouldering all the risks.
In Africa, climate change threatens to undo decades of progress in poverty reduction and food security.
Countries like Zimbabwe, Kenya, and Malawi are already experiencing more frequent droughts and erratic rainfall, making farming an increasingly uncertain endeavour.
Yet African smallholder farmers are often the least able to access financing for adaptation.
Here, financing agri-food systems is about more than climate—it is about survival.
Investment in irrigation systems, drought-resistant seeds, and post-harvest storage can dramatically reduce vulnerability.
Expanding access to microfinance and mobile banking is also crucial, as digital platforms can reach rural farmers who are excluded from formal banking systems.
Additionally, regional development banks and governments must work together to create guarantee schemes that de-risk lending to smallholders.
Zimbabwe, for instance, could benefit greatly from scaling up agroecological practices, which are less input-intensive and better suited to fragile ecosystems.
With adequate financing, farmers could diversify crops, restore degraded soils, and integrate livestock and forestry to build resilience.
Linking such initiatives to carbon markets could also provide farmers with new income streams, further incentivizing sustainable practices.
The cost of not financing agri-food systems adequately is immense. Without investment, food insecurity will worsen, rural poverty will deepen, and greenhouse gas emissions will continue to rise.
Moreover, climate shocks will force millions of people to migrate, intensifying social and political instability. These outcomes are far costlier than proactive financing of sustainable systems today.
Estimates suggest that transforming global food systems could generate trillions in economic benefits, from improved health outcomes to reduced environmental damage.
Yet this potential remains untapped because financing has not kept pace with ambition.
If the world is serious about meeting its climate goals, financing agri-food systems must move to the centre of the agenda.
Governments, international organizations, financial institutions, and the private sector must collaborate to create innovative and inclusive financing solutions.
Importantly, smallholder farmers—who feed much of the world—must not be left behind.
Redirecting financial flows, closing the financing gap, and aligning investments with climate-smart practices will determine whether we succeed or fail in the fight against climate change.
Food systems are not peripheral to climate goals—they are central.
