To give Bhutan’s agri-food industry long-term financial support, BAF hopes to raise USD 80 million from private investors and philanthropists.
The fund’s goals and potential to revolutionize Bhutan’s agriculture industry are described in the prospectus. Bhutan’s agriculture faces significant obstacles because of its steep terrain and scarcity of arable land. Bhutan’s six agroecological zones provide year-round farming opportunities despite these challenges. According to the prospectus document, the nation’s emphasis on organic, nature-based agriculture and its potential for agritourism, digital innovation, and youth engagement offer opportunities for expansion and access to specialized markets for high-end crops and medicinal plants. According to a MoAL official, BAF was designed as a revolutionary financing mechanism to guarantee long-term, sustainable agricultural development to overcome these obstacles and unleash the sector’s full potential.
The BAF incorporates cutting-edge financial instruments to support Bhutan’s agri-food industry in a long-term, equitable, and inclusive manner. According to the official, BAF will create a pooled fund for MoAL to carry out projects based on new priorities. Climate-Smart Agri-Food Systems, maximizing local agro-diversity, technology integration, creating an inclusive, profitable, and resilient agri-food value chain, and empowering rural and vulnerable communities are the five main thematic areas into which BAF seeks to direct sustainable investments. The fund is in line with international frameworks like the Paris Agreement, the Kunming-Montreal Global Biodiversity Framework, the UN Sustainable Development Goals, and the UNCCD Strategic Framework.
