CFC and Spain Explore Collaboration to Empower Smallholders and Promote Sustainable Commodity Value Chains
The Hague, 12 November 2025 – Ambassador Sheikh Mohammed Belal, Managing Director of the Common Fund for Commodities (CFC), paid a courtesy visit to H.E. Ms. Consuelo Femenía Guardiola, Ambassador of Spain, and Mr. Juan Antonio Varela Donoso, Economic and Commercial Counsellor and Alternate Governor of the CFC for Spain. He was accompanied by Ms. Zahra Kahla, Research and Data Assistant.
At the outset, Ambassador Belal conveyed the CFC’s profound appreciation to the Government and people of Spain for their leadership in hosting the Fourth International Conference on Financing for Development (FfD4) in Sevilla, a landmark gathering that delivered some of the most consequential commitments in favour of smallholders worldwide. He noted that the codification of “value addition at origin” within the Sevilla Commitment represents an historic breakthrough:
an opportunity to ensure higher incomes for farmers, greater resilience for rural communities, and lower global emissions by reducing the transport of bulky, unprocessed commodities.
Ambassador Belal underscored the hope that the newly established Sevilla Platform will remain vigilant in monitoring the implementation of these commitments.
He further conveyed heartfelt thanks to the Government of Spain for its visionary leadership in co-hosting, with Brazil, the Leaders Summit of the Global Alliance Against Hunger and Poverty, held in Doha on 9–10 November 2025. The CFC was honoured and privileged to participate in this historic event, reaffirming its allegiance to the objectives of the Global Alliance and its commitment to ensuring that smallholders and rural producers remain at the centre of global efforts to eradicate hunger and poverty.
CFC Evolution and Expanding Impact
During the meeting, Ambassador Belal provided an overview of the evolution of the CFC. He recalled that the Fund’s original credit line of USD 11–13 billion under the 1976 Integrated Programme for Commodities (IPC) would amount to nearly USD 70 billion in today’s value. While the IPC once focused on buffer stocks for 18 key commodities, the CFC has since transformed into a global impact investment fund using a competitive call-for-proposals model every six months. Its mission now centres on advancing inclusive, sustainable, and climate-resilient commodity value chains.
He highlighted how the COVID-19 pandemic sharply increased SME demand for finance, leading to the creation of the Agricultural Commodity Transformation (ACT) Fund, a USD 100 million impact fund with a strong gender and regenerative agriculture framework. The ACT Fund was recently activated through a dual investment:
- USD 10 million from Dutch Invest International
- USD 10 million from the CFC, complemented by
- a USD 20 million first-loss guarantee from the CFC to de-risk investment and maximise developmental impact.
Ambassador Belal also briefed the Ambassador and Alternate Governor on the FCDO Trust Fund, a USD 3 million instrument supporting small-ticket projects in rural Sub-Saharan Africa, and on ongoing initiatives under the CAFI deforestation value chain programme, both of which generate meaningful income and livelihood opportunities for farmers. He further noted that the CFC continues to pursue additional international accreditations to expand its development footprint.
Humanizing Value Chains (HVC): Closing the Gap Between Consumers and Producers
A central focus of the discussion was the Humanizing Value Chains (HVC) initiative, which seeks to address painfully low smallholder incomes by strengthening the link between consumers and producers. Ambassador Belal presented the CFC’s work on micro-repatriation mechanisms, which guarantee that farmers receive a fair share of the value they create—in essence, “justice in every transaction.”
Spain’s Leadership and Shared Vision
Ambassador Femenía expressed strong interest in conveying the CFC’s message to the Ministry of Economy, Commerce and Business and the Ministry of Foreign Affairs, exploring how Spanish capital, expertise, and technical support could help advance inclusive and sustainable rural development, in line with Spain’s commitments under the Sevilla Declaration and its broader development cooperation priorities.
Both sides reaffirmed the importance of empowering rural communities, supporting smallholder farmers, and promoting sustainable commodity value chains as essential drivers of equitable global growth.
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.
For media inquiries, please contact:
[CFC Media Relations Team]
[Email: managing.director@common-fund.org]
[Phone: +31 20 575 4949]