The Agricultural Commodity Transformation Fund reached a first close of $40 million to provide debt finance and technical assistance to small and medium sized agricultural businesses in Africa, Latin America and Asia.
The ACT fund, established by the UN-affiliated Common Fund for Commodities, aims to reach about 275,000 farmers and increase “farmer productivity while restoring soils, biodiversity and carbon stocks.” Netherlands-based Invest International anchored the fund.
The Common Fund for Commodities committed $20 million in first-loss capital.
Dutch expertise
The Netherlands is the world’s second-largest food exporter. Invest International’s investment requires that at least 20% of the portfolio companies have Dutch ownership, supply Dutch agri-trading companies, or use Dutch processors for European distribution. ACT fund is targeting $75 million in total by the end of this year, with plans to make roughly 70 investments.
“By combining impact-oriented finance with Dutch sector expertise, we help unlock capital for small businesses that are building resilient, inclusive food systems – and strengthen global value chains in the process,” said Invest International’s Michiel Slootweg.
