The Agricultural Commodities Transformation Fund achieves first close target of USD 40 million
The Common Fund for Commodities and the Agricultural Commodities Transformation (ACT) Fund are pleased to announce the first closing of the ACT Fund slightly above its target of USD 40 million. The ACT Fund is a private credit fund providing trade finance, working capital and long-term debt financing to SMEs in agricultural commodity value chains across Africa, Latin America and Asia. Addressing a substantial unmet demand for financing, the ACT Fund allows these businesses to connect millions of smallholder farmers to attractive markets, to create local economic value and support formal jobs in rural areas while preserving nature through regenerative agricultural practices.
The ACT Fund is a private fund entity established by the Common Fund for Commodities (CFC), a development finance institution affiliated to the United Nations, based in the Netherlands. The Fund aims to raise a total of USD 75 million in capital. Backed by CFC’s first loss investment of USD 20 million, Invest International’s cornerstone dual currency investment of USD 10 + EUR 10 million has put the ACT Fund more than half-way towards its final target of USD 75 million. In parallel to making its first investments by early 2026, ACT will continue its fundraising activities with a final closing planned for Q4 of 2026.
The Fund will extend a full range of debt financing to agri-SMEs committed to implementing inclusive and sustainable agricultural practices in their supply chains. Inclusive regenerative agriculture is at the heart of ACT’s transformative impact strategy. The Fund's nature-positive approach increases farmer productivity while restoring soils, biodiversity, and carbon stocks. Strengthening climate adaptation and resilience will contribute to creating secure food supply, stable livelihoods and robust ecosystems. ACT will typically provide between USD 1.5m and 5m per company.
ACT has a strong and proprietary dealflow pipeline due to the established AGRI-SME lending activities of CFC, having been active for over a decade with direct lending to agricultural businesses across Africa, Latin America and Asia.
Michael van den Berg, Investment Director of ACT said: ‘The strong support of CFC and Invest International as cornerstone investors has made this first closing possible. We have a strong team with experience in executing a debt mandate, backed by CFC’s unique platform, delivering investment-ready pipeline we are excited to implement the ACT investment strategy. Not only will we produce an attractive financial return for our investors, but our investments will improve livelihoods and generate real, measurable environmental and social impact across our portfolio’.
Sheikh Mohammed Belal, Managing Director of CFC said: ‘We are delighted that the ACT Fund has reached its first closing. The forward-looking strategy of the fund, which is very much in tune with global development finance investment priorities will provide a strong platform on which to develop a portfolio of profitable companies with strong environmental and social credentials. CFC is committed to the growth of the ACT franchise and will contribute its significant financial expertise, unparalleled network and experience of operating in commodities producing countries to ensure the success of the vehicle. In addition, CFC has made a significant and catalytic financial commitment as a sign of confidence in the ACT team and the investment strategy’.
Michiel Slootweg, Director Private Sector at Invest International adds: “With our cornerstone investment in the ACT Fund, we’re proud to support the transition to regenerative agriculture in emerging markets. By combining impact-oriented finance with Dutch sector expertise, we help unlock capital for SMEs that are building resilient, inclusive food systems — and strengthen global value chains in the process.”
Alongside the ACT Fund, the fund manager also aims to raise USD 10 million for Technical Assistance, which will be deployed to promote the adoption of regenerative agricultural practices and build capacity among agri-SME investees and smallholder farmers as their suppliers.
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[CFC Media Relations Team]
[Email: managing.director@common-fund.org]
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