9 new investments recommended with the potential to benefit 43,000 smallholders
The CFC’s Consultative Committee has recommended nine investments for consideration of the Executive Board (EB). If approved by the EB these investments are expected to benefit more than 43,000 smallholder farmers across Africa, Asia and South America.
In total these investments will unlock USD 29.8 million of financing for agribusinesses that are creating economic opportunity where it is needed most, with the CFC’s contribution amounting to USD 8.6 million.
Each agribusiness was selected from 136 applications submitted to our 22nd Call For Proposals. As part of our selection process we identified where investment would have the greatest positive impact by accelerating local development, improving smallholder livelihoods, creating sustainable supply chains and diversifying exports.
The investments will support the growth of agribusinesses specialising in commodities including cocoa, dried fruits, herbs, vegetable oil, fishery products, macadamia, coffee and groundnuts, in Singapore, Uganda, Kenya, Ecuador, Morocco, Colombia and Cote D’Ivoire.
They will also contribute to several of the United Nation’s Sustainable Development Goals, including: SDG 1 (No poverty), SDG 2 (No hunger), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production), and SDG 13 (Climate Action).
Speaking at the meeting, which was held in Amsterdam last week, CFC Managing Director Amb. Sheikh Mohammed Belal emphasised the critical importance of supporting agribusinesses at a time of global instability that has led to damaging inflation and a rise in poverty.
He highlighted the challenges smallholders have been made to endure in recent years: “Many farmers reside and operate in remote areas, lack access to competitive markets, and often depend on monopolistic buyers who hold all the cards. They are vulnerable price takers, with limited ability to capitalise on higher prices.”
Agribusiness can connect these farmers to more secure, higher value markets and our investments are designed to enhance their ability to do this. Amb. Belal added: “Out of a substantial pool of 136 projects that we received in response to our 22nd Call For Proposals, we have made strenuous efforts to select those that promise greatest sustainable impact.”
Amb. Belal also provided an update on the Agricultural Commodity Transformation (ACT) Fund which 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.
The Consultative Committee is composed of nine commodity experts from different regions, who are elected for a term of two years. They meet twice a year to discuss and recommend investments in commodity-related businesses for consideration by the Executive Board.