Agrifi is a new initiative that increases investment in smallholder agriculture and agribusiness micro/ small/medium enterprises (MSMEs) to achieve inclusive and sustainable agricultural growth. Agrifi will be launched in 2016, together with interested parties and European Financial Institutions. A central feature of Agrifi is that the provision of EU grants will mobilise additional public and private investment. This additional investment is needed to enhance the development impact of investment projects and achieve impact at scale. Agrifi responds to the lack of financing mechanisms adapted to farmers and agri-entrepreneurs, particularly for smallholders and agribusiness MSMEs. Agrifi will be backed-up by a robust component of technical assistance and value chains analysis capacity, to support decision making on investment, to enhance business development and advisory services for farmers and agri-entrepreneurs and to monitor the actions for accountability purposes. Agrifi addresses this situation by providing greater risk-bearing capacity through public money, to encourage project promoters and attract private finance to viable investments which would not have happened otherwise. Agrifi is therefore about addressing a market failure and it finances those actions that have a clear development impact on those who would normally not be reached. This includes smallholders with limited market orientation, vulnerable farmers, women and young farmers and entrepreneurs