CFC and South Centre Discuss Strengthening Cooperation on Global Commodity and Development Agenda
Amsterdam, 17 October 2025 – The Managing Director of the Common Fund for Commodities (CFC),) held a virtual meeting on 17 October 2025 with Dr. Carlos M. Correa, Executive Director of the South Centre, to discuss ways to deepen collaboration in advancing sustainable commodity development and strengthening the voice of developing countries in the global trade and development agenda.
During the exchange, both parties underscored the growing relevance of the CFC in supporting inclusive growth, sustainable value chains, and agricultural transformation across developing countries. Dr. Correa noted that the CFC’s evolving role represents a tangible success story of the New International Economic Order (NIEO) vision — one that is increasingly vital in today’s global context.
CFC’s Managing Director shared recent milestones achieved by the organization, including the operational launch of the Agricultural Commodity Transformation (ACT) Fund, a blended finance vehicle of USD 40 million that connects multilateral impact capital with private investors. The Fund aims to catalyse investments in sustainable commodity value chains, particularly in agriculture and regenerative production. The CFC also highlighted its ongoing partnerships with others which further validate the Fund’s role as a credible platform bridging impact finance and development outcomes.
Both institutions reaffirmed the importance of the Seville Commitment, in which paragraph 46(d) explicitly recognizes the CFC and invites Member States “to increase voluntary contributions to enable the Fund to scale up support to developing countries, especially least developed countries, for projects that promote value addition, particularly in agriculture, and to expand into processing and manufacturing.” This recognition was linked to recent global developments, notably the Advisory Opinion of the International Court of Justice (ICJ) on Climate Change, which confirmed that climate finance and technology transfer to vulnerable nations are legal obligations, not voluntary acts of charity.
As part of their forward-looking collaboration, the CFC and the South Centre agreed to explore a joint publication on the role of the CFC in promoting sustainable commodity development. The publication will highlight innovative mechanisms that bridge trade, finance, and development priorities within the multilateral system.
The CFC also introduced a technical proposal for a potential VAT-sharing mechanism, under which importing countries could consider refunding a small proportion of Value Added Tax (VAT) collected on commodities originating from developing countries. This concept was noted as a complementary initiative to the South Centre’s flagship South Centre Tax Initiative (SCTI), which promotes cooperation among developing countries on international taxation matters.
The CFC looks forward to further strengthening cooperation with the South Centre, including potential future meetings in Amsterdam or Geneva, to build on the outcomes of this constructive exchange and to jointly advance the global commodities and development agenda.
About the Common Fund for Commodities (CFC):
The CFC is an UN-affiliated international financial institution based in Amsterdam, working in over 100 countries to support inclusive economic development through impact investing in commodity value chains.
About the South Centre:
The South Centre is an intergovernmental policy research and think tank organization of developing countries, headquartered in Geneva, Switzerland. Established in 1995, it works to promote South–South cooperation and strengthen the collective voice of developing nations in global economic, social, and environmental policymaking.
For more information, visit https://www.southcentre.int/
For media inquiries, please contact:
[CFC Media Relations Team]
[Email: managing.director@common-fund.org]
[Phone: +31 20 575 4949]