Annual Report 2023 VI

The 35th Annual Meeting of the Governing Council (GC) was held on 21 and 22 November 2023, in The Hague. GC members gathered in person to discuss the challenges smallholders face and how new investment opportunities can be developed to provide access to funding that could drive economic growth. Overcoming funding constraints and the potential for innovative investment strategies to lift people out of poverty, were key topics for discussion at the Council.

Chairperson of the GC, H.E. Dr. Eniola Ajayi, opened the meeting by underscoring the critical role of organisations such as the CFC in mobilising resources to address global economic and environmental concerns.

In his keynote address, Dr. Akinwumi Adesina, President of the African Development Bank Group, highlighted the critical importance of addressing global food insecurity amid geopolitical tensions and climate change, particularly in Africa.

He emphasised the need for comprehensive strategies to support agriculture, reduce commodity dependence, and promote value addition within Africa. Key initiatives such as the African Development Bank's Feed Africa strategy and the CFC’s Agricultural Commodity Transformation Fund were highlighted as essential steps towards achieving food security and economic prosperity.

CFC Managing Director Amb. Sheikh Mohammed Belal drew attention to the critical challenges faced by African agriculture, the need for broader engagement with the African Development Bank, and the opportunities presented by the Africa Continental Free Trade Agreement.

Amb. Belal also introduced the CFC’s first agri-investment Development Impact Bond which aims to promote sustainable agricultural practices and tackle the issue of deforestation through measures such as land mapping. His address also highlighted the urgency of addressing poverty, gender equality, volatile commodity prices, and environmental concerns while advocating for increased funding and cooperation among member states to meet growing demand for financing.

He reiterated the CFC’s commitment to supporting smallholders – the backbone of supply chains across developing countries – to achieve prosperity through equitable and sustainable commodity trade.

Governing Council highlights

During the meeting 35 delegations delivered national statements, including on behalf of the OECD and Asia Group, provided by the representative of Sweden and Sri Lanka. All highlighted the importance of investing in agribusinesses and smallholders to alleviate poverty.

The GC noted that 18 investments were approved by the CFC in 2023, totalling USD 279.17 million, including USD 13.98 million of CFC contributions. Combined, these investments are expected to reach around 174,000 smallholdefarmers, including fishers and beekeepers. The approved projects create and/or maintain 2,534 fulltime permanent jobs, of which 1,139 (45%) are held by women. The income per job created per annum will range from USD 1,560 to USD 6,310. The projects cover commodities such as herbs and spices, vegetable oil, organic macadamia, coffee, soybeans, organic honey and fishery products etc

Together, the investments target: SDG 1 (No poverty), SDG 2 (Zero hunger), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 12 (Responsible consumption and production), SDG 13 (Climate action), SDG 14 (Life below water) and SDG 17 (Partnerships for the goals).

Re-election of Amb. Belal for second term at CFC

We are delighted to confirm that our current Managing Director, Ambassador Mohammed Belal, was re-elected by the GC for a second four-year term in office, with a twothirds majority in the first round of voting.

Amb. Belal was first elected MD at the CFC in 2019 after being elected by consensus at the 31st Annual Meeting of the GC. Before assuming his position at the CFC he served as Ambassador of Bangladesh to the Kingdom of the Netherlands with concurrent accreditations to the Republic of Croatia, and Bosnia and Herzegovina from March 2014 to February 2020.

During his career, he has also served in Bangladesh Missions in Washington, Canberra, Kuala Lumpur and Tashkent in different capacities, and was the Permanent Representative of Bangladesh to the Organization for the Prohibition of Chemical Weapons (OPCW). During his tenure at the OPCW, Amb. Belal took on a range of roles including Chairperson of the Executive Council from 2017 to 2018.

Amb. Belal has been a member of the Board of Directors of the Trust Fund for Victims of the International Criminal Court since December 2018. Furthermore, the Bureau of the Assembly of States Parties appointed Amb. Belal as Facilitator for the Trust Fund of Victims for the term 2015-2016. He is also a member of the International Gender Champions and is committed to its Panel Parity Pledge.

Amb. Belal has a Master’s in Public Administration from Harvard University in the USA, a Master’s in International Relations and Trade from Monash University in Australia and completed a degree in forestry at Chittagong University in Bangladesh.

His mission is to put humanity at the heart of commodity value chains.

Chairperson and Vice-Chairpersons of the Governing Council for 2024

The GC elected a new Chairperson at the meeting: H.E. Ms. Margaret Shava, Ambassador of Kenya, who represents a commodity-rich country and brings invaluable expertise. The Council thanked outgoing Chairperson H.E. Dr. Eniola Ajayi, Ambassador of the Federal Republic of Nigeria to the Kingdom of the Netherlands and the CFC’s Alternate Governor for Nigeria, for her outstanding contribution to the CFC's work.

The Chairperson and Vice-Chairpersons of the Governing Council for 2024 are as follows:

Chairperson for 2024

H.E. Ms. Margaret Shava (Kenya)

Vice-Chairpersons for 2024

African Region Group:

H.E. Mr. Hatem Elsayed Mohamed Kamaleldin (Egypt)

Asian and Pacific Region Group:

H.E. Ms. Aruni Ranaraja (Sri Lanka)

Latin American and Caribbean Region Group:

Mr. Diego Sadofschi (Argentina)

OECD Group: Ms. Anna Tofftén (Sweden)

China: Mr. JIN Yuan

The Russian Federation: Mr. Alexander Dyukarev

The Common Fund for Commodities (CFC) demonstrated its commitment to improving smallholder farmer livelihoods and strengthening food security in vulnerable countries, at a side event during the 35th meeting of the Governing Council (GC).

The event, which took place on 21 November 2023 in The Hague, Netherlands, was proposed by the Republic of Kenya during the 34th Governing Council in 2022. It aimed to show participants, including member states, civil society representatives and members of the media, how enhancing the production, processing and trading of commodities has the power to increase incomes for local farmers and processors. This was proposed to encourage member states to do their part to bridge the gap between final and farm gate prices so that farmers could lift themselves up from the poverty.

Several leading voices in the agricultural development sector contributed to the session, which was led by H.E. Ms. Margaret Shava, Ambassador of Kenya, who also delivered the welcome address. H.E. Amb. Riaz Hamidullah, Ambassador of Bangladesh, emphasised the transformative potential of innovation in his insightful opening remarks, while H.E. Ms. Miriam Black Sow, Ambassador of Uganda, highlighted the CFC's role as a catalyst for change in thecommodities sector. She underscored the importance of pragmatism in addressing issues of commodities and poverty, particularly in rural communities.

Another highlight of the session was a presentation by Dr. Peter Gildemacher, Executive Director of the Netherlands-based Sepia Potato Foundation, titled ‘State-of-the-art Science for Productive Agribusiness in Africa’. Dr. Gildemacher shared several innovative scientific advances in the African potato sector.

Businesses driving impact

We also took the opportunity to showcase several CFC investees who are transforming the lives of smallholder farmers.

• Exotic EPZ – One of the company’s founders, Jane Maigua, discussed how the Kenyan business aims to provide eco-friendly, high-quality products for global consumers. In particular, how the sustainable production of macadamia nuts plays a key role in building a profitable agribusiness.

• Classical Handmade Products – Managing Director, Tauhid Bin Abdus Salam, explored how the Bangladeshbased business uses non-traditional fibre sources, such as bamboo, jute, and banana leaf, to create handcrafted products that provide additional income for rural communities and economic opportunities for women.

• Meridia – Chief Revenue Officer, Beatrice Moulianitaki, outlined how Meridia provides traceability and transparency for regenerative agriculture in rural areas. The company's focus on accurate land mapping across Ghana, Indonesia, and Cote d'Ivoire, underscores the importance of land documentation in advancing agricultural development.

• Shalem – Co-founder Ruth Kinoti shared firsthand how CFC investments have helped develop Shalem into a high-value grain processing business, showcasing the potential of agro-processing to bolster food security and income generation.

• Moyee Coffee – Jasper Meewis, Moyee Coffee’s Project Manager for Impact, introduced the Dutch social enterprise which is dedicated to fair trade and sustainable coffee production. He highlighted Moyee's commitment to retaining a significant portion of the coffee's value within the country of origin through practices such as local roasting and packaging, in contrast to typical distribution models dominated by large multinational corporations.

Stepping towards a sustainable future

The speakers, presentations and the businesses showcased, emphasised the importance of reshaping the commodity sector to benefit producers and farmers. By adding value locally and retaining more income in the country of origin, it can play a pivotal role in driving sustainable development, economic growth and inclusive prosperity.

We hope the innovative solutions and productive conversations that were shared, inspired everyone present to continue working towards a future that is sustainable and prosperous for everyone.

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Annual Report 2023 VI

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