The Common Fund for Commodities announced as a VACS Champion: A Step Toward Resilient Food Systems

5 December 2024, Riyadh – UNCCD COP16 - The Common Fund for Commodities (CFC) is proud to announce its recognition as a VACS Champion, conferred during UNCCD COP16 in Riyadh, underscoring its commitment to addressing escalating global challenges in food security, climate resilience, and sustainable land use. This recognition aligns with the U.S. Department of State’s Vision for Adapted Crops and Soils (VACS) initiative, which is dedicated to strengthening agricultural systems worldwide and adapting to the challenges of a changing climate. 

Through the Agricultural Commodities Transformation Fund (ACT Fund), CFC is mobilizing investments to support agricultural SMEs that serve as vital links between millions of smallholder farmers and high-value markets. With a $100 million target capitalization, the ACT Fund has earmarked $5 million to VACS-aligned priorities, including the development of climate-resilient crops, promotion of soil health, and strengthening of nutritious food systems.

“Smallholder farmers are the backbone of global food systems, yet they face a staggering $65 billion financing gap,” said Michael van den Berg, ACT Fund Director. “CFC’s initial $20 million commitment to the ACT Fund is a call for collective action from both public and private sectors to bridge this divide and drive transformative change.” Fostering private-sector engagement is key to accelerating agricultural transformation, and CFC is dedicated to creating a thriving investment ecosystem that supports long-term, impactful solutions.

CFC’s investment approach is rooted in its 35-year track record, vetting high-impact projects and mobilizing private-sector participation to accelerate progress. In 2023 alone, the organization assessed over 300 project proposals representing $350 million in financing needs, underscoring the urgent demand for actionable and inclusive financial mechanisms.

“This recognition is more than an achievement—it’s an invitation to global collaboration” said Sheikh Belal, Managing Director of CFC. “Together, we have the opportunity to ensure that smallholder farmers are at the forefront of sustainable development efforts, leaving no one behind.”

The CFC’s recognition as a VACS Champion underscores its shared commitment with VACS to fostering inclusive finance, advancing environmental stewardship, and building resilient agricultural systems. This collaboration marks a pivotal step toward reshaping the global agricultural landscape, empowering smallholder farmers, and accelerating progress toward sustainable development goals that leave no one behind.

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