Nairobi, Sept. 8 -- The International Fund for Agricultural Development (IFAD) and Equity Group have launched a $200 million (Sh25.8 billion) financing agreement for smallholder farmers and rural businesses in East Africa to help them adapt to effects of climate change.

The Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM) is a 12-year private sector-led programme aimed at closing the financing gap for climate adaptation in farming.

It comprises $180 million (Sh23.3 billion) in lending capital and $20 million (Sh2.6 billion) in non-financial expertise and training needed to support the investment.

According to a statement by IFAD and Equity Group, the loan capital is expected to revolve through four investment cycles, generat...