Skip to main content

CFC’s Executive Board approved seven investments benefitting more than 130,000 smallholders

More than 130,000 smallholder farmers are expected to benefit from investments approved at the Common Fund for Commodities’ (CFC’s) 77th Meeting of the Executive Board (EB), held on 4 April 2024.

The Consultative Committee recommended projects costing USD 41.4 million, with the CFC expected to provide USD 7.8 million  in loans or Development Impact Bonds.

These projects aim to benefit 130,000 smallholder farmers across several countries like Côte d’Ivoire, Kenya, Nicaragua, Nigeria, Tanzania, and Uganda (LDC), focusing on commodities like coffee, cocoa, horticulture, floriculture, and agricultural financial services to enhance market access and increase productivity. 


In Côte d’Ivoire, Kumasi Drinks is embarking on a project to manufacture soft drinks and cocoa juice from cocoa pulp, aided by a EUR 650,000 working capital loan. Similarly, in Tanzania, Kaderes Peasant Development is aiming to broaden its coffee sourcing and export operations. By 2027, the number of affected smallholder farmers in Tanzania is expected to increase from 16,500 to more than 24,000, with potential benefits including enhanced income from greater coffee volumes, carbon credit sales, and a 2% premium above organic and fairtrade prices.

Concurrently, the UN International Labour Organization (ILO) is striving to combat hazardous child labour within the cocoa value chain in Côte d'Ivoire through a USD 1 million Development Impact Bond. The project aims to empower 4,400 smallholders for enhanced fresh produce production, benefiting 17,000 children who are at risk of being involved in hazardous activities in the cocoa value chain. The project aims to increase the provision of warm meals for school children aged 6-14 years from 161,000 to 1,932,000 annually.

Over in Kenya, Everest Enterprises is charting a course to diversify into high-value horticulture/floriculture crops, backed by a USD 500,000 working capital facility, while Darley Investments in Uganda is dedicated to fostering specialty Arabica coffee production with a USD 600,000 working capital loan. By 2025, the project aims to expand from 600 to 1,500 smallholder farmers while Darley aims to obtain Rainforest Alliance certification and establish a fully traceable value chain during the CFC loan period. 

Sunbeth, Nigeria's leading cocoa trader, plans to utilize CFC funding to boost cocoa sourcing from smallholder farmers, aiming to expand from 20,000 to 70,000 farmers by 2027. This initiative ensures compliance with global regulations such as the EU deforestation Regulation and consumer demands for traceable and sustainable cocoa, enhancing income for farmers through increased volumes and a 12% price premium.

Meanwhile, Fundeser in Nicaragua is on a mission to expand agricultural financial services by providing micro-loans to individuals and small and medium enterprises in rural areas. This marks the CFC's first investment in a microfinance institution, showcasing their innovative approach and strong knowledge of the agricultural sector in Nicaragua. The project aims to elevate the impact, expecting to reach 26,000 individuals and SMEs by 2027, with the credit portfolio growing from USD 37 million to potentially USD 60 million.

As an impact investor, CFC is committed to achieving the SDGs through investments as approved in this EB. These investments, in addition to addressing CFC’s core Sustainable Development Goals (SDGs) - SDG 1 (No poverty), SDG 2 (Zero hunger), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 13 (Climate action).  

Managing Director, Ambassador Belal, stressed the need for collective action to empower smallholder farmers and promote sustainability, emphasizing gender equality in lending practices and increased financial support from member states. Agenda items for upcoming meetings include project deliberations, strategic planning, and collaborations to address financial challenges and ensure the CFC's continued mission of global development impact.

The virtual meeting was chaired by H.E. Mr. J. Eduardo Malaya, Ambassador of the Republic of the Philippines to the Kingdom of the Netherlands. 

All News