ADB launches Fund to scale resilient agribusiness and sustainable rangeland management in Mongolia

ULAANBAATAR, MONGOLIA (24 August 2026) — The Asian Development Bank (ADB) today launched the Green Inclusive Regional Agribusiness Fund (GIRAF) to expand access to finance for herders, cooperatives, small and medium-sized enterprises, and agribusinesses investing in sustainable livestock value chains in Mongolia.

Established with $92.6 million from the Green Climate Fund under the ADB-supported Aimag and Soums Development Investment Program, and with an additional $25 million expected from commercial banks, the fund will promote sustainable rangeland management, livestock production, and rural enterprises. Through concessional loans, credit guarantees, microfinance, and innovation grants, it will help address longstanding financing constraints in Mongolia's rural economy.

"The GIRAF Fund represents a new approach to financing resilient rural development in Mongolia," said ADB Country Director for Mongolia John Juhyun Jeong. "By providing tailored financial solutions for sustainable livestock production and improved rangeland management, the fund will help create jobs, strengthen rural economies, combat land degradation and desertification, and build resilience to disasters."

Temperate grasslands cover about 82% of Mongolia and support a livestock sector that accounts for around a quarter of the country’s employment and more than 10% of its gross domestic product. The ecosystems and the communities that depend on them face increasing pressures from desertification and rangeland degradation.

The fund will initially deploy $37.5 million, including $3 million grant, to provide tailored financing for rural businesses through concessional loans, credit guarantees that reduce collateral requirements, and grants that support green innovation. Priority will be given to enterprises with commercial partnerships and benefit-sharing arrangements involving herders and herder cooperatives.

A digital traceability and monitoring system using geospatial and remote-sensing technologies will track investments and measure their environmental and socioeconomic impact.

By 2034, the GIRAF Fund is expected to support around 500 small and medium-sized enterprises and cooperatives and 1,000 microenterprises, helping generate greater value from livestock products while advancing sustainable rangeland management, land restoration, and resilient rural livelihoods.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

https://www.adb.org/