Annual Report 2024

The past year was a true stress test of our collective resolve - a storm of needs and hopes, with over 360 project proposals arriving at our doorstep like sails on the wind, each carrying the aspirations of communities yearning for inclusive and sustainable growth. Yet, with limited financial wind in our own sails, we could approve only 18 projects, representing a total investment of USD 135.56 million, with the CFC contributing USD 18.55 million.

This is not a reflection of our ambition – it is a reflection of our current financial horizon, still too narrow for the scale of transformation our member states urgently seek. And yet, what we achieved in these constraints was far from routine. Each member of the CFC team played the role of a sailor on a stormy night – not merely keeping us afloat, but steering us with courage and conviction through turbulent waters, drawing us ever closer to our mission and vision. Behind every approved project stands not just a file or figure, but the steady hands and determined hearts of those who refused to drift, who chose instead to navigate toward impact, equity, and hope.

Anchored in the heart of mainland Europe, the Common Fund for Commodities continues to serve as a unique bridge - linking global capital with grassroots enterprise, connecting decision-makers with the unheard voices of rural producers. From this vantage point, we strive to reach the unreached, serve the unserved, and offer our Member States a moment to reflect and renew our shared human commitment: to build a world with as little poverty as possible, and dignity in every corner of economic life.

Despite these constraints, 2024’s achievements stand tall. The 18 newly approved projects will directly benefit more than 196,000 smallholder farmers and their families, with approximately a quarter of beneficiaries being women. These initiatives expand CFC’s already impactful portfolio, which in 2024 alone supported over 540,000 farmers, sustained 11,800 jobs, and brought more than 113,000 hectares under sustainable cultivation. These are not just numbers—they are milestones in the lives of communities now more resilient, connected, and empowered.

Every dollar we invest is more than capital - it is a vote of confidence in local ingenuity and the grassroots pulse of sustainable development. From the cocoa forests of the Amazon to vanilla farms in Madagascar, from the highland coffee cooperatives in Uganda to the bamboo innovators of Bhutan, our funding nurtures life-affirming enterprises where traditional finance dares not tread. Transformation, after all, does not trickle down - it rises from the soil, nourished by community, culture, and care. True transformation doesn’t trickle down - it grows from the ground up.

Today, our portfolio spans 480 projects across 104 countries, including 35 Least Developed Countries (LDCs) and 15 "Absolute Sixteen" nations - both LDCs and Landlocked Developing Countries, where challenges run deepest but impact resonates most. In Chad, support for the sesame value chain revived key exports while reducing post-harvest losses by 40%. In Bhutan, bamboo construction innovations are creating jobs while cutting emissions.

As we turn the page, we do so anchored in impact and propelled by the hopes of communities that dare to dream - and act. The tide of transformation is rising. With stronger support, we are ready to sail further.

The ACT Fund: A New Chapter

Launched in 2024, the Agricultural Commodity Transformation (ACT) Fund marks a bold next step. With a USD 100 million capitalization target and a USD 10 million technical assistance window, it aims to reach 200,000 farmers, restore 275,000 hectares, and unlock climate-smart, high-value exports.

But ACT is more than finance - it is a vehicle for justice. In the Philippines, Kennemer Foods integrates agroforestry, carbon credits, and youth empowerment. In Colombia, Colcocoa links regenerative farming with biodiversity preservation. These are scalable models that reward communities, not just markets.

Through partnerships like Ecotierra, we pioneer biodiversity credits and conservation - linked lending. Here, watershed protection and pollinator preservation are not “extras” - they’re core to financial viability.

Humanizing the Value Chains (HVC)

As outlined in Section III.2, Humanizing Value Chains is our moral and economic compass. We are redesigning trade to embed fairness, dignity, and agency for producers. With projects like CSN+ in Peru (Section II.2), we turn REDD+ into revenue streams for local communities through eco-tourism and verified carbon credits.

HVC: From Survival to Sovereignty - A Value Chain Revolution

If there is one concept that defines our ethos today, it is this: Humanizing Value Chains (HVC). As described in Section III.2 of this report, HVC goes beyond certifications and standards. It is a systematic redesign of value chains to restore fairness, dignity, and agency to producers. It means tipping farmers like we tip taxi drivers. It means using blockchain to ensure that the story of the product - and the hands that made it - is not erased at checkout.

By integrating ethics into every transaction - through guaranteed minimum pricing, upfront payments, and embedded technical assistance - we create a more humane, transparent, and resilient value chain.

Photo: Adobe Stock

As an example of our work, consider CSN+ in Peru (Section II.2), a REDD+ initiative that doesn’t just protect forests, but creates value chains in agroforestry and eco-tourism. With an investment of just USD 290,000 from the CFC, five pilot organizations were able to launch conservation models that now earn verified carbon credits. And they do so without compromising the autonomy of communities - working with them, not on them. This model of participatory governance ensures that conservation is not an imposition but a choice - a livelihood option with dignity and reward.

Humanizing Value Chains (HVC) is, therefore, more than a technical fix - it is a moral and economic revolution. By embedding fairness into every transaction, we begin to reverse the decades-long imbalance that left smallholders, garment workers, and artisanal miners surviving on the margins while wealth pooled elsewhere in the chain.

When a farmer earns a living income, she does not simply buy more food - she hires help, sends her children to school, and invests in better tools or processing facilities. Over time, she evolves from a price-taker into a price-maker - from a subsistence farmer into an entrepreneur. This shift is transformative. Her increased agency fuels local economies, reduces dependency on aid or predatory loans, and allows rural communities to plan for the future, not just survive the present.

With HVC in action - through fair minimum pricing, blockchain-backed traceability, and digital tipping - producers retain more value at the source. As incomes rise and stabilize, household debt levels begin to fall. Where once governments were forced to borrow billions to plug fiscal holes caused by commodity price shocks, they can now draw on an empowered rural base. This is fiscal resilience born not of austerity, but of justice.

HVC, supported through vehicles like the ACT Fund, helps nations move from debt-dependence to value-based self-reliance. When a garment worker earns a wage she can live on - not just survive - she has dignity. When a coffee farmer knows their product’s story will be seen and valued at checkout, they have pride. And when producing countries can retain a just share of global value, they reclaim their economic sovereignty.

This is not charity. It is a recalibration of global trade, one in which human dignity is the first input and shared prosperity the final output. HVC does not ask for more aid - it builds the infrastructure for a fairer world, where the hands that power our lives are no longer invisible or undervalued, but fully seen, fairly paid, and deeply respected.

Let us not settle for marginal improvement when transformation is within reach. HVC offers a path where living wages are the norm, not the exception - and where value chains become freedom chains, unbinding the potential of billions.

HVC is not charity - it’s a restructuring of value creation. Blockchain, minimum pricing, and digital tipping empower producers to retain value. As incomes stabilize, rural debt falls, and states gain fiscal resilience - not through austerity, but through equity.

Photo: Adobe Stock

Communicating CFC Stories: Voices from the GC36 Side Event

At the 36th Governing Council, our side event (Section VI.2) brought powerful stories from the field to life. From Bangladesh, Classical Handmade Products showed how jute and seagrass crafts can employ thousands of women through decentralized, home-based hubs. LadyAgri highlighted how bridging Africa’s gender gap in agribusiness boosts both equity and returns. EFTA Tanzania revealed how local leasing unlocks SME potential, giving farmers vital access to machinery. Colcocoa in Colombia reminded us that biodiversity is not a trade barrier but a value-add - having planted over 47,000 native trees through its PlanT initiative.

With events like these, CFC introduces Member States to what works - solutions that are ready to scale without further trial and error. In a world of scarce resources, prudence is power. We must back what delivers.

We invite all Member States to contribute ideas to the next chapter of this dialogue at GC37 on 09 December 2025. Let’s shape a better commodity future together.

Results that Matter

As detailed in Section V, our work aligns with the IRIS+ framework. In 2024, household incomes rose by up to USD 4,080. Women represented 34% of our beneficiaries. 68% of investments were in Africa, with expansion across Latin America and Asia-Pacific. These are not abstract figures - they are steps toward a fairer, climate-smart future where trade uplifts rather than excludes.

Strategic Framework 2025–2035: Charting the Next Horizon

As we look ahead, the CFC is developing a Strategic Framework for 2025–2035 to navigate a world shaped by climate shocks, evolving trade, and rising debt burdens in the Global South. Anchored in values - people over profit, ecosystems over extraction - it will harness frontier technologies like AI, remote sensing, and mobile finance to democratize innovation. The CFC will evolve from financier to convenor, aligning private capital, public policy, and local wisdom into one shared vision. Our expanded toolkit will include blended finance, gender-smart instruments, and real-time impact tracking. But we cannot do this alone. To build an inclusive financial system, the CFC must be empowered – with resources and partners - to meet this decisive moment.

The Challenge: Commodity Dependence and Systemic Inequality

Commodity dependence remains a structural challenge for the developing world, with 95 of 195 UNCTAD member states relying on commodities for over 60% of merchandise exports (2019-2021). This dependence has left LDCs, LLDCs, and SIDS vulnerable to external shocks, with price volatility disrupting fiscal planning and aggravating food insecurity.

The system enables hunger profiteering - powerful agribusiness corporations exploiting food crises for excessive profit. A mere 1% rise in food prices drives 10 million people into extreme poverty. During COVID-19, major agricultural traders saw profits increase over 1000% while distributing $53.5 billion to shareholders - more than needed to prevent hunger for 230 million of the world's most vulnerable.

Unprecedented Member State Support

We extend profound gratitude to our member states for their unprecedented expression of support - both vocal advocacy and quiet, invisible backing that enables our continued innovation. This collective commitment has been instrumental in our ability to do more with less, leveraging every resource for maximum impact.

Call to Action

The CFC stands as a unique platform where over three billion smallholders, workers, and producers - the very backbone of global commodity supply chains - can be recognized not merely as economic actors, but as rightful stakeholders in shaping a fairer world order. The case for the CFC is fundamentally one of ethics, morality, and justice. Let us make the CFC a sacred ground for reimagining commodity value chains - where inclusive, sustainable, and equitable models replace exploitation and exclusion.

We are working tirelessly to unlock new gateways and platforms that can transform these value chains, but our progress depends on Member States embracing the CFC’s potential fully. Together, we must ensure that commodity value chains work for all – not just for some.

At a critical time like this, let us rise together to unlock the vast pipeline of promising proposals that remain unfinanced. Let us ensure the hands that feed, clothe, and sustain us are never left empty. With conscience, capital, and cooperation, we can rewrite the rules of commodity trade - for people, for planet, for posterity.

This is our moment. Let it not pass us by.

Ambassador Sheikh Mohammed Belal

Managing Director

Common Fund for Commodities

The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever on the part of the Secretariat of the Common Fund for Commodities and/or on the part of the countries mentioned on it, concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The information shown is this map is for information purposes only and should not be considered as any form of endorsement by the Common Fund for Commodities and does not create any legal rights or obligations for any Member State.

Key Challenges:

Commodity Dependence: 90% of African LDCs and 67% of Island LDCs rely on commodities for over 60% of exports (UNCTAD, 2022).
Trade Inequity: Cocoa farmers earn 2/kg vs. global prices of 12/kg; African coffee growers earn < USD 1/kg.
Structural Barriers: Under MFN regimes, tariffs on processed agricultural exports from LDCs average up to 20%, discouraging local value addition.
Financial Exclusion: Smallholders (80% of global food production) lack access to credit, insurance, and technology.
No dedicated global fund for the SMEs, although they are the providers of most of the jobs.

CFC's Strategic Interventions:

1. Impact Investment:

Blended finance, de-risking tools, and catalytic capital for smallholder agriculture.
Focus on gender equity – women produce 80% of food but earn 54% less than men.

2. Technical Assistance (TA):

Strengthening institutions, climate-smart practices, and digital impact tracking.
Supports SMEs in meeting certification/traceability standards for premium markets.

3. Humanizing the Value Chains (HVC):

Blockchain-enabled transparency to ensure fair wages (e.g., garment workers in Bangladesh).
Redirects value back to producers through ethical consumer engagement.

4. Advocacy for Systemic Reform:

Advocating for tariff reductions, South-South trade integration, and enforcement of Special & Differential Treatment (SDT).
Targeted support for the "Absolute Sixteen" (LDCs + LLDCs like Chad, Nepal, Uganda).

Harnessing Commodities for Sustainable Growth

For generations, those who grow, mine, and harvest the raw materials driving the global economy have remained trapped in cycles of low income, volatile markets, and systemic poverty. The Common Fund for Commodities (CFC) was founded to help change that – to challenge a global trade system that too often sidelines the very people who sustain it.

Born out of a broader UNCTAD vision, the CFC embodies a global commitment to make commodity markets fairer, more inclusive, and sustainable. One of UNCTAD’s boldest initiatives, the Integrated Programme for Commodities (IPC), aimed to stabilize prices and ensure fair pay, laying the groundwork for structural change. The CFC became the IPC’s financial engine – channelling investment, building partnerships, and delivering action where it mattered most.

Yet, the imbalance persists. Commodity-dependent countries still face sharp price swings and limited access to value-added markets, while profits concentrate in wealthier economies. In an era focused on sustainability and equity, such disparities are indefensible.

The CFC views commodities not merely as goods, but as lifelines – woven into the fabric of communities and ecosystems. That’s why it supports smallholders with access to innovative finance, backs sustainability-focused enterprises, and collaborates with governments to build resilient, just markets. True development, after all, begins by addressing the root causes of inequality in global trade.

As the world confronts climate change, fractured supply chains, and shifting geopolitics, the CFC’s mission has only become more vital. It isn’t enough to make markets efficient – we must make them fair. Through strategic investment and systemic reform, the CFC remains a steadfast partner to developing countries, working to turn commodities into pathways for shared prosperity.

Commodity Dependence is a Structural Vulnerability

A country is considered commodity-dependent when over 60% of its merchandise exports consist of commodities. This is particularly problematic in Least Developed Countries (LDCs), where such dependence leaves economies vulnerable to market shocks and impedes structural transformation. As of 2022, UNCTAD reported that 90% of African LDCs and 67% of Island LDCs were commodity-dependent. Even in Asia, 50% of LDCs face similar constraints. Despite global commitments under the Istanbul Programme of Action to reduce the number of LDCs by half by 2020, from 48 to 24, the reality in 2025 shows 46 LDCs remain.

Sixteen countries, 13 in Africa and 3 in Asia, are both LDCs and Landlocked Developing Countries (LLDCs). Known as the ‘absolute sixteen’, Afghanistan, Burkina Faso, Burundi, Central African Republic, Chad, Ethiopia, Lao PDR, Lesotho, Malawi, Mali, Nepal, Niger, Rwanda, South Sudan, Uganda, and Zambia, these nations suffer disproportionately from structural barriers, low fertilizer usage, and deep-rooted poverty.

The CFC urges coordinated support to uplift these highly vulnerable economies. Their inclusion in global economic progress is not just a moral imperative, it is essential for the stability, sustainability, and equity of the international development agenda as a whole.

Through its continued advocacy and project support, the CFC remains committed to working with international partners, national governments, and local stakeholders to break the cycle of commodity dependence and unlock the long-awaited promise of structural transformation for the absolute sixteen, and for all who share in their challenges.

Structural Barriers to Equity in Global Trade

Despite decades of trade liberalization, global value chains remain structurally skewed against smallholder farmers and SMEs in commodity-dependent countries. In 2024, cocoa farmers in Côte d’Ivoire and Ghana earned just USD 2 per kilogram, even as global prices neared USD 11. Ethiopian coffee growers earned less than USD 1 per kilo. Such disparities highlight the enduring inequity at the heart of global trade – where those at the base of the value chain capture only a fraction of the final value.

Low farmgate prices trap producers in poverty, leaving little room to invest in fertilizers, improved seeds, or climate-resilient practices. This perpetuates a vicious cycle of low productivity, vulnerability to market shocks, and exclusion from formal finance. SMEs, meanwhile, face overwhelming compliance costs to meet global standards on certification, traceability, and sustainability – barriers that deny them access to premium markets and consolidate value among larger firms in wealthier economies.

Compounding these issues are deeply entrenched tariff structures. Under Most-Favoured-Nation regimes, agricultural exports from low-income countries face tariffs nearing 20%, particularly when value is added through local processing. This tariff escalation penalizes industrialization and locks countries into the role of raw material suppliers. Even within South-South trade, duties of 10–15% persist, undercutting regional integration and the diversification of trade partners.

Tackling these systemic constraints requires bold reforms. Developing country exporters need access to low-cost certification, targeted subsidies, and public guarantee schemes to compete fairly. Tariff barriers – especially those on value added exports – must be dismantled, both globally and within the Global South. Strengthening and enforcing Special and Differential Treatment (SDT) provisions is essential to creating a trade architecture that enables – not obstructs – inclusive, climate-resilient development.

If the global community is serious about achieving the Sustainable Development Goals, trade justice must move from rhetoric to reality.

Bridging the Financing Gap Through Impact Investment

Smallholder farmers are the unsung pillars of the global food system – managing 90% of the world’s farms and producing nearly 80% of food by value. Their work sustains the livelihoods of close to 3 billion people. Yet, despite their pivotal role in ensuring food security, smallholders remain largely excluded from formal financial systems. The Common Fund for Commodities (CFC) views targeted investment in smallholder agriculture not just as a moral imperative, but as a strategic lever for reducing poverty, promoting economic stability, and strengthening global food supply chains.

Traditional financial institutions often perceive smallholders as high-risk due to limited collateral, small-scale operations, and exposure to environmental shocks. As a result, smallholders are frequently excluded from the very resources they need to thrive – credit, insurance, and investment in modern tools and technologies.

Impact investing provides a powerful alternative. By channeling patient, risk-tolerant capital into underserved agricultural sectors, it unlocks pathways to inclusive growth. These investments prioritize measurable social and environmental outcomes – such as food security, gender equity, and climate resilience – alongside sustainable financial returns. The CFC, through innovative financing structures including blended finance, de-risking instruments, and catalytic capital, is mobilizing both public and private resources to fill these financing gaps.

We are acutely aware that women are the backbone of agriculture in many developing countries, producing up to 80% of food, yet they earn just 54 cents for every dollar men make and face persistent barriers to land ownership and credit. This inequity persists despite women’s stronger loan repayment records – for instance, Nigerian women farmers repay loans at higher rates than men. Empowering women in agriculture is not only a matter of justice but of global impact: it could reduce undernourishment by up to 17%, benefiting over 100 million people. The CFC is committed to advancing genuine gender equity by placing women at the heart of its agricultural investment strategies.

The CFC combines financial capital with deep, context-specific technical support, transforming commodity value chains into engines of inclusive growth. This integrated approach ensures that even the most vulnerable stakeholders – smallholder farmers, women, and youth – can fully participate in and benefit from global trade. Through strategic investments, strong partnerships, and a steadfast focus on equity, the CFC is building a future where prosperity is shared, and no one is left behind. The CFC invests in smallholders, not only boosting rural productivity and resilience but also advancing broader development agendas – from eradicating extreme poverty to transforming food systems and accelerating climate action. Scaling up inclusive finance for smallholders is not just a development priority – it is essential for global stability and shared prosperity.

Centering Technical Assistance in Inclusive Value Chain Development

The success of impact investments in commodity-dependent economies hinges on more than just funding. For local entrepreneurs, cooperatives, and farmers, particularly in fragile contexts, technical expertise is essential to translating finance into tangible outcomes. The CFC has long recognized this through its integrated TA approach, which supports communities in scaling sustainable production, improving market access, and meeting certification standards.

To this end, TA efforts focus on several strategic pillars:

• Institutional and Regulatory Strengthening: By supporting local governments in developing transparent, enabling frameworks for sustainable commodity trade and responsible investment, CFC helps lay the foundation for long-term economic resilience.

• Project and Business Development Skills: Customized TA equips local enterprises and SMEs with tools to design investment-ready projects, implement climate-smart agricultural practices, and improve operational efficiency – boosting their chances of attracting capital and succeeding in competitive markets.

• Impact Measurement and Data Systems: Using digital tools, remote sensing, and performance tracking, the CFC enhances beneficiaries' ability to collect and report on impact metrics – ensuring investor accountability and driving continuous learning.

Ethical Market Practices and Fair Wages: Humanizing the Value Chains

The latest addition to the CFC instruments, the Humanizing the Value Chains (HVC) initiative reimagines global commodity trade by addressing the ethical failures of traditional supply chains, where smallholder farmers and low-wage workers receive only a fraction of the final product’s value. Despite powering billion-dollar industries, producers – like garment workers in Bangladesh earning well below a living wage – remain underpaid due to exploitative market structures. HVC, championed by the CFC, uses digital tools like blockchain and direct consumer engagement to create transparent, traceable, and fairer exchanges. By connecting producers and consumers, it shifts value back to the source, empowers ethical consumption, and promotes inclusive growth that reflects the real worth of labor and resources.

With a legacy rooted in the international quest for equity in global trade, the Common Fund for Commodities stands as a testament to what determined, cooperative action can achieve. For decades, it has brought together governments, investors, and communities to confront the structural injustices embedded in commodity markets. Today, building on this rich history, the CFC continues to evolve – pioneering innovative financing mechanisms, promoting inclusive technologies, and championing fairer value chains. In a world facing profound ecological, economic, and social challenges, the CFC remains steadfast in its mission: to drive sustainable development, empower the most vulnerable, and help shape a more just and resilient future for all humankind.

Photo: CFC

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Annual Report 2024

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