CFC Executive Board approves 11 investments benefitting more than 56,000 smallholders
The Common Fund for Commodities (CFC) announced its largest ever round of investments at the 78th Meeting of the Executive Board (EB) held on 2 October 2024.
The Board greenlit a total of 11 investments – the highest number approved in one meeting – which will unlock USD 94.6 million in financing, including a USD 10.8 million commitment by the CFC.
The funding will focus on enhancing productivity and market access for smallholders involved in a diverse range of commodity and service sectors such as saffron timber, coffee, cocoa, dates, irrigation, land mapping, macadamia nuts, rice and sea products.
These investments are projected to benefit more than 56,000 smallholder farmers in countries including Afghanistan, Bangladesh, Côte d’Ivoire, Ghana, Honduras, India, Kenya, Sierra Leone, Singapore, Tunisia and Venezuela. They include:
- USD 1 million loan to expand Inversiones Marinas’ shrimp export operations in Venezuela, with the potential to increase full-time employment from 9,000 to 13,000 by 2030.
- USD 1 million loan to Miro Forestry which will benefit sustainable timber production in Ghana and Sierra Leone, contributing to job creation and rural income generation for smallholder outgrower producers.
- USD 1.5 million loan to Ten Senses Africa in Kenya to expand organic macadamia nut sourcing from 5,000 to 12,000 farmers by 2028.
- EUR 1 million trade finance loan for Côte d'Ivoire’s ECOOKIM to enhance cocoa production, benefiting 42,000 smallholder farmers by 2030.
- EUR 1 million working capital loan for Horchani Dates in Tunisia to increase its smallholder farmer date suppliers from 133 to 1,000 by 2028.
- USD 500,000 trade loan toAfghanistan’s Herat Saffron to support saffron production, aiming to increase its smallholder farmer network from 5,000 in 2023 to 13,300 by 2030. The project will also boost saffron production to 29 metric tons, enhancing income for many women farmers through expanded access to international markets.
- EUR 500,000 loan for Netherlands-based Satelligence to develop land-mapping solutions for smallholder farmers that enable compliance with the EU Deforestation Regulation and promote deforestation-free value chains.
CFC Managing Director Ambassador Sheikh Mohammed Belal emphasized the importance of these investments, he said: “The journey to eradicating poverty is not a one-size-fits-all approach. It must be as diverse as the challenges and opportunities found across the developing world. Our strategy is comprehensive, combining proven solutions with business development to create a resilient, gender-inclusive, and climate-resilient economy across the global South, with active partnership and backing from the global North.”
He added: “Through these initiatives, we reaffirm our commitment to improving the livelihoods of smallholder farmers and promoting sustainable agricultural practices, aligned with the Sustainable Development Goals (SDGs).”
The EB was also given an update on ACT Fund which continues to gather momentum, with the CFC making progress toward securing more than USD 100 million in funding. Designed to promote sustainable and climate-resilient supply chains, ACT Fund aims to harness regenerative agriculture to enhance farmer livelihoods. The fund’s purpose and potential are receiving positive feedback from potential investors, including Development Finance Institutions and impact investors, with discussions advancing to the due diligence stage.
Ambassador Belal said: “ACT Fund serves as a beacon of hope, channeling investment into low-carbon, sustainable supply chains that not only bolster farmer livelihoods but also contribute to global climate resilience. We urge our member countries and potential investors to rally behind this transformative initiative.”
As the CFC continues to forge partnerships and seek innovative solutions, it remains committed to its mission of transforming the commodity sector into a powerful driver of sustainable development and poverty alleviation.
The meeting was chaired by H.E. Mr. J. Eduardo Malaya, Ambassador of the Republic of the Philippines to the Kingdom of the Netherlands.