Helping impact investment funds make a bigger difference: Eva M. Johansson interview
Eva M. Johansson leads the Technical Assistance Facility (TA) team at the CFC. She has more than a decade of experience working with governments, donors, NGOs and public-private partnerships in the development sector. We sat down for a chat to find out how her team works with impact investment funds to boost economic opportunity where it is most needed.
For those not familiar with the TA team, can you describe what it does and its relationship with the CFC?
We’re part of the CFC, but we are a service provider to other impact investment funds that invest in agricultural-related businesses across the world and we work 100% with those funds. We manage the TA facilities they run, using our expertise and wide network of topical and sectoral experts to make sure they are delivering as much impact on the ground as possible.
In practice that means we provide tailored technical assistance to the agribusinesses they invest in to enable them to grow sustainably. This also includes generating greater incomes for the farmers they source commodities from and creating secure local supply chains that are climate resilient. The end goal is to maximise the positive social, environmental and economic impact each business has on the wider community it operates in, and to do that we draw on the longstanding work of the CFC in supporting smallholders and SMEs (small and medium-sized enterprises).
Who do you work with at the moment?
Currently, we manage TA facilities for two funds: the Africa Agriculture and Trade Investment Fund (AATIF) and the Moringa Investment Fund Agroforestry Technical Assistance Facility (ATAF).
The Moringa Fund focusses on investing in companies that use agroforestry systems to grow crops and develop new revenue streams for farmers in an ecologically sound way across Africa and Latin America. While AATIF invests in a broad range of agricultural commodities to enhance economic and environmental resilience in Africa.
Could you tell us about the expertise and services you provide?
The technical assistance support we offer really depends on the challenges and opportunities each agribusiness has. Rather than implementing a set TA support programme from the top down, we’ve designed our service so that we can address the specific needs of businesses and their local communities.
We really try to get to know them, visiting their factories, workplaces and sourcing areas to deepen our understanding of their situation while working in close collaboration with the fund managers and advisors. We’re then in a better place to identify solutions that will build stronger businesses, while, crucially, improving the lives of smallholder farmers.
These include helping to design or expand out-grower schemes, training farmers to use sustainable growing methods, supporting smallholders to diversify their crops, and providing supply chain transparency that enables products to tap into the conscious consumer market. We can also provide core business support to agribusinesses, such as tailormade software solutions that improve sustainability analysis and reporting within a company, and value chain or market analysis that assists a business to make informed choices about potential new ventures. I could go on!
What is your success as a TA team founded on?
We have a small but well-oiled team that has more than a decade of experience supporting agribusinesses and managing initiatives that drive their growth. We don’t have all the skills for every project in house and that’s one of our strengths, because we can reach into our huge network of consultants and experts to create the best team for each job, with the right knowledge of the sector and local area. This gives us the agility to shape our service to each business’s needs.
Equally, as part of both the CFC and the funds we support, we can lean on internal expertise in areas such as certification and labour standards.
Underpinning all of this is our focus on building trusting, long-term relationships. We really care about the businesses and farmers we work alongside. We want to make a tangible difference because, ultimately, that’s what will improve people’s lives.
Can you talk us through an example?
We recently launched a three-year TA project to support a newly established vegetable processing plant in West Africa. The processing lines are not yet up and running but the plant is expected to be commissioned this year.
The support we are providing is multifaceted. We’re helping the company to upskill internally so that it can manage the supply of raw material more effectively. We are also providing an external team of agronomists to propose a design for an outgrower scheme with local farmers that will ensure a steady supply of local raw material. Later, farmer training will also be provided as part of this TA support package.
Why is the TA team’s work so crucial right now?
Strengthening the positive impact of any business is always important but given the current challenges facing the world our role is even more relevant. For example, the volatility caused by the pandemic, the war in Ukraine and the climate crisis have heightened the need to develop secure local supply chains.
In terms of tackling climate related challenges in agriculture, we’re helping smallholder farmers evolve how they operate, to both mitigate the impact of climate change on their livelihoods and adopt more environmentally friendly farming methods. One trend we see emerging in climate smart agriculture is the application of carbon sequestration methods in various value chains. These initiatives aim to embed farming methods that create a positive environmental impact – one example is biochar application on nutrient-poor soil – while introducing potential new revenue streams for farmers.
Looking ahead what do you hope to achieve in the next year?
We’re going to continue helping agribusinesses grasp opportunities which they wouldn’t be able to without our skills and resources. Adding value and creating genuine positive change where it can have a transformative impact on lives, is what I find most satisfying about our TA work.
We would also love to broaden our impact by working with more investment funds, whether they’re government organisations, public-private partnerships or philanthropic foundations. If you’d like to discuss what we offer, please get in touch!
Eva is currently on maternity leave but you can connect with her on LinkedIn here, and to find out how the TA team could support your investment fund to boost its impact contact: nicolaus.cromme@common-fund.org