8 new investments approved by CFC Executive Board
More than 90,000 smallholder farmers will benefit from eight new investments approved by the Executive Board at its meeting in early October.
This will unlock an investment of about 28 million including CFC contribution of USD 7.6 million in the first year but could grow into 42.5 million during the five year time period of CFC investment. CFC invests in small and medium sized enterprises (SMEs) that often struggle to access financing, enabling investees to expand their operations locally and thereby localizing the development.
The eight SMEs were selected from 136 applications sent during our 22nd Call for Proposals. They were approved by the Executive Board based on strong business models, a track record of success, commitment to sustainability and the potential to provide economic opportunity where it is most needed.
They include our first investment in a fish aggregator and processor, alongside investments in agribusinesses specializing in groundnuts, coffee, herbs and vegetable oil, macadamia nuts and cocoa, across countries including Uganda, Tanzania, India, Singapore, Kenya, Ecuador, Côte d’Ivoire and Morocco.
Each investment involves a commitment of up to five years from the CFC, which gives businesses the long-term security they need to expand their activities. This builds their confidence to develop greater processing capabilities and become a reliable partner to more smallholders.
Our investments will contribute to several of our core Sustainable Development Goals (SDGs), including: SDG 1 (No poverty), SDG 2 (No hunger), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth), and SDG 13 (Climate Action). SDG 12 (Responsible consumption and production) also plays an important part in the estimated impact of approved projects.
Speaking after the meeting CFC Managing Director Amb. Mohammed Belal said: “I am delighted that eight investments have been approved by the Executive Board. By investing in SMEs we aim to plug the funding gap they face and drive up prosperity for the world’s most vulnerable people. We expect this financing to help these businesses collectively reach more than 90,000 smallholder farmers, increasing their incomes and reducing poverty.”
He added: “I thank the Board for attending and taking part in constructive conversations about the CFC’s work. It is also our pleasure to welcome H.E. Jose Eduardo Malaya who was elected as next Chair of the Board. I’m looking forward to working together to increase our impact in the years to come. We remain deeply grateful to our Ex-Chairperson Ms. Anna Tofften of Sweden for her service to the Executive Board.”
Alongside presentations detailing the eight investment proposals and the election of a new Executive Chair, the meeting gave Investment Director Michael van den Berg the opportunity to update the Board on the progress our Agricultural Commodity Transformation (ACT) Fund. ACT gives the private sector an opportunity to invest in viable agribusinesses that are driving positive change, in a way that balances risk, reward and impact.