The 74th Consultative Committee (CC) of the Common Fund for Commodities has recommended 11 investments for consideration by the Executive Board (EB). If approved by the EB, these investments are expected to benefit more than 59,066 smallholder farmers.
The CC recommendation aims to unlock USD 94.6 million in financing across these 11 projects, with a commitment of USD 10.8 million by the CFC. These funds will support agribusinesses in countries such as Afghanistan, Tunisia, Bangladesh, Peru, Singapore, Ghana, and Venezuela, among others.
The CFC received 175 investment proposals in response to the 24th Call for Proposals, of which 24 were selected and discussed in the CFC Project Appraisal Committee (PAC). 11 will now go forward to the EB following recommendation by the CC.
If approved, the recommended investments will foster the growth of agribusinesses specializing in commodities such as spices, fertilizers, seafood, rice, fruits, cocoa, and coffee. These investments are anticipated to generate 26,018 jobs, including 9,495 for women. Furthermore, the projects will boost produce yields by 333,508 MT and promote afforestation and rewilding in conservation areas, sequestering approximately 200,000 MT CO2e annually.
Furthermore, these investments will contribute to several of the United Nations’ Sustainable Development Goals, including SDG 1 (No poverty), SDG 2 (No hunger), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 12 (Responsible consumption and production), and SDG 13 (Climate Action).
Speaking at the meeting, which was held in Amsterdam last week, CFC Managing Director Ambassador Sheikh Mohammed Belal said: “The Agenda of this Committee derives directly from the grassroots and is based on the CFC’s Open Call for proposals. Our efforts are paying off and breaking new ground. You will see projects on the agenda from areas previously untouched by the CFC, including proposals related to saffron from Afghanistan and dates from Tunisia, as well as a proposal for innovative irrigation technology. We have never before seen this level of interest in our work, which is credit to our joint efforts.”
Ambassador Belal added: “Our key message and contribution to the global development debate remains that impact investing in SMEs offers a beacon of hope and remains one of the most promising avenues for fostering economic diversification and building productive capacities.”
Ambassador Belal highlighted the critical inequities of the commodity trade, in which farmers receive a fraction of the final market price. He urged stakeholders to work together to narrow the price gap and support climate resilience, stressing the importance of digitization and traceability to “humanize the value chain”.
Datuk Ramle Kasin, Chairperson of the Consultative Committee, also reported back on the 77th Executive Board meeting of the CFC, held on 4 April 2024. Key points included:
- Approval of USD 7.8 million in loans and a development impact bond for seven projects, benefiting 131,000 smallholder farmers, after reviewing recommendations from the 73rd Meeting of the Consultative Committee (CC).
- Endorsement of collaboration with the Central African Forestry Initiative.
- Member countries encouraged to submit their nominations for new CC members by 19 August 2024.
The CC is composed of nine commodity experts from different regions, who are elected for a term of two years. They meet twice a year to discuss and recommend investments in commodity-related businesses for consideration by the EB.
The CFC also co-hosted an event on the sideline of the 74th Consultative Committee to discuss “Beyond the Green Horizon: Charting a Sustainable Future for Smallholder Farmers” on July 03, 2024, in Amsterdam along with the Embassy of the Republic of Guatemala to the Kingdom of the Netherlands. You may read more on this here.
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