CFC Side Event at FfD4 Unveils ACT Fund: Mobilizing Public-Private Investment for Sustainable Agriculture
On 2 July 2025, the Common Fund for Commodities (CFC) and the ACT Fund hosted a high-level side event at the 4th International Conference on Financing for Development (FfD4) in Sevilla, Spain. The session— “Agricultural Commodity Transformation (ACT) Fund: Public-Private Investment for Sustainable Transformation and Development of the Agricultural Commodity Sector”—brought together leaders in development finance, investment, and agri-business to address the persistent underfunding of agricultural value chains in developing countries.
Key Highlights:
- Launch of the ACT Fund:
Introduced as a pioneering $100 million blended finance vehicle, the ACT Fund is designed to channel private investment into high-potential agri-SMEs across the Global South. Anchored by a catalytic $20 million first-loss commitment from the CFC, the Fund de-risks investments and encourages broader private sector participation. - Technical Assistance Facility:
A $10 million facility complements the Fund, providing critical support for capacity development, transparency, and innovation—improving both impact and financial performance for investees and investors. - Expert Panel Discussion:
The event featured opening remarks from Mr. Nicolaus Cromme (COO, CFC), a keynote address by Dr. Lisa Sachs (Director, Columbia Center on Sustainable Investment), and panel contributions from Mr. Michael van den Berg (Director, ACT Fund), Mr. Fernando Russo (Meraki Impact), Ms. Melanie Machingawuta (TechnoServe), Mr. Dominikus Collenberg (Organic Africa Ltd., Zimbabwe), and Mr. Igor Zelezetskii (BRICS Business Council Task Force on Credit Ratings). - Addressing Structural Constraints:
Panelists underscored how institutional and systemic barriers continue to make long-term capital prohibitively expensive in developing markets. They called for increased public investment and policy reform to unlock finance for SDG-aligned growth. - Focus on Impact:
The ACT Fund is deeply aligned with the Sustainable Development Goals, with a focus on poverty alleviation, gender equality, climate action, and biodiversity conservation. Its investment approach promotes regenerative and biodiversity-friendly agriculture to build climate-resilient value chains. - Inclusive Dialogue and Engagement:
The session fostered dialogue among governments, international organizations, investors, and agri-SMEs, exploring innovative ways to overcome financial bottlenecks and reimagine global financial architecture for sustainable agriculture.
A Model for the Future
Speakers at the FfD4 side event emphasized a critical gap in today’s global financial architecture: despite growing interest in sustainable development, conventional finance systems are not structured to reach or reward the kinds of high-impact, complex investments needed in the Global South. In particular, long-term, patient capital remains scarce for small and medium agri-enterprises—the very actors positioned to drive inclusive growth, climate resilience, and food security.
The ACT Fund challenges this status quo. As a blended finance vehicle, it combines catalytic public funding with private capital to unlock investment in regenerative, biodiversity-friendly agriculture. By addressing structural barriers—such as high perceived risk and lack of technical capacity—the Fund creates a more enabling environment for agri-SMEs to thrive and scale.
As the global community seeks new solutions to meet the SDGs by 2030, the ACT Fund stands out as a pragmatic and powerful tool. It demonstrates that strategic partnerships between the public and private sectors can deliver measurable impact—where it’s needed most.
For media inquiries, please contact:
[CFC Media Relations Team]
[Email: managing.director@common-fund.org]
[Phone: +31 20 575 4949]