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project

Fairtrade Access Fund (FAF)

Country
Multiple
Technology
N/A
Business model
Fund

AgriFI invested EUR 5 million in the Incofin Fairtraide Access Fund to support its growth strategy in Africa. By expanding its scope to numerous countries, the FAF targets to contract 500+ new loans to empower 200,000+ smallholder farmers by 2022.

Contracting date: April 2019

Countries: Latin & Central America, the Caribbean and Africa

Sector: Agri multi crops/ lending products

Total AgriFI Financing: EUR 5 million

Environmental and Social Category: B

 

Project overview

The Fairtraide Access Fund is an impact fund created in 2012 to address the financial needs of smallholder farmers by providing better access to financing. The fund is active in 19 countries with a fund size of EUR 51m (2019).

The Fund invests in Fairtrade or sustainable certified smallholders by providing loans and offering technical assistance. As a result, the Fund contributes to the development of a fair and sustainable agriculture, with a strong commitment to sustainable development.

Learn more

 

Funding objective and  impact:

AgriFI will invest up to EUR 5 M in Class A equity (long term investor, +7 years) in order to:

1. increase the size and scope of the Fund in order to impact a larger number of smallholder farmers engaged through their organizations in sustainable agriculture, with a special development focus in Africa

2. attract more senior finance by securing the Fund financial stability thanks to increased equity in the Fund: both private investors, subscribing to more liquid B-Shares, as well as long term lenders.

 

Why AgriFI wants to fund this project

The Fund has a clear development impact for smallholder farmers, by enabling them to invest in their land to raise crop yields, improve quality and get a fair return.

Beyond the certifications’ advantages, including the premium, having the FAF as a trade financing partner, greatly improves the bargaining power of the investees, mainly producer’s organisations.

 

Environmental and social rationale

The Project is rated category B.

(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk

Impact

Smallholder farmers
500,000 (by 2022)
Ha of sustainably cultivated area
2,000,000 (by 2022)
Jobs created
10,000 (by 2022)

Key indicators

Financial instrument
Equity
Amount
EUR 5 million
Year
2019

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