FMO approves investment in agribusiness fund
Dutch development finance institution FMO has approved an investment in the Climate Smart Agriculture & Food Systems Fund.
The fund has been established by investment firm Responsibility in collaboration with CGIAR, a global research partnership for a food-secure future, and anchor investor KfW, a German state-owned investment and development bank.
The Climate-Smart Agriculture & Food Fund is a $200 million debt vehicle targeting food systems transformation. The aim is to provide long-term expansion debt to innovative businesses operating in the food value chain in Asia Pacific, Latin America and Africa with the goal of mitigating climate change, reducing food loss and promoting climate change resilience of smallholder farmers.
The fund’s strategy is to provide long-term financing along with technical assistance to agri SMEs under four investment themes: 1) sustainable intensification of production, 2) value adding and efficient processing and logistics, 3) sustainable and inclusive retail and food brands, and 4) climate technology and solutions providers. The financing will target transactions in agriculture focused on reducing climate change risk and greenhouse gas emissions as well as on promoting sustainable increase in yields.