We invest in organisations and activities that:
are innovative and target new opportunities in commodity markets that lead to commodity-based growth, create employment, increase household incomes, reduce poverty and enhance food security;
are scalable, replicable and financially sustainable;
have the potential to positively and measurably impact the socio-economic and environmental situation of the people and places involved in commodity value chains;
develop stronger connections with existing markets or create new markets along the value chain;
increase the financial, and other, services available to commodity producers and commodity-based businesses;
enhance knowledge generation and information sharing;
build effective and cost-efficient collaboration between producers, industry, governments, civil society organisations and other stakeholders for commodity-based development.
- connect the modern, digitally aware consumer with hardworking smallholders using technology. We call this ‘walking back along the value chain’ to directly benefit the smallholders who put food on our tables.
Key areas we support
We provide technical and financial support from field to fork. That means we operate all along the value chain from production to consumption and reach across local, national, regional and international markets. Here are some examples of specific areas we target:
• Production, productivity and quality improvements
• Processing and value addition
• Product differentiation
• Technology transfers, upgrades and innovation
• Measures to minimise physical marketing and trading risks
• Facilitation of trade finance
• Risk management, such as price and weather volatility
Investment with impact
We fund projects that are sustainable and deliver measurable development impact within the framework of the SDGs. Our support is usually in the form of loans, including working capital, trade finance or similar financial instruments. In rare cases we will consider providing equity, quasi equity, lines of credit and guarantees. We also offer limited grants to qualifying organisations, for example, to enable specific new activities in areas of strategic interest or to support loan-based projects through activities such as capacity building and technical assistance.
Our activities are financed through voluntary contributions and capital subscriptions by member countries, as well as interest earned from our investments. The more generous member states are the more we can invest in overcoming the commodity dependence that exacerbates poverty, creating a fairer and healthier world for the benefit of everyone.
Partnering up to grow our impact
We can achieve more working together. We seek to build partnerships with public and private institutions, bilateral and multi-lateral development organisations, cooperatives, producer organisations, SMEs, processing and trading companies, and local financial institutions. We look for several elements when selecting a partner, including that they:
• operate in commodity value chains or provide financial and other services to small business operators, SMEs, cooperatives or producer organisations;
• have a proven track record in commodity development;
• have the ability to invest in the value chain to reduce transaction costs or increase revenues of producers, processors, storage or marketing;
• have a clear plan focusing on developing and/or diversifying their production or services;
• have a clear plan to expand their markets at local, national, regional and international level;
• have the technical, managerial and financial capacity to effectively and efficiently implement their activities;
• include social, economic and environmental aspects in their scope of work;
• share the CFC’s values, including internationally recognised principles concerning human rights, labour standards, the environment and anti-corruption;
• will collaborate with the CFC to extend their core activities and create additional opportunities for everyone in the commodity value chain.