Annual Report 2024 II

Photo: Stephen Kioko

Interview with Guillaume Maillard, Chairman, Co-founder, and CEO of Pamoja

 

When Guillaume Maillard joined Ten Senses Africa (TSA) in 2020 under Pamoja Farms, he inherited a business deeply entrenched in the challenges of seasonal, smallholder agriculture. Yet in just a few short years, his leadership has driven a transformation that is both measurable and meaningful. Under his direction, TSA has expanded its network of smallholder farmers fivefold – from 2,500 to 12,000 – while establishing one of East Africa’s most sophisticated and socially responsible macadamia supply chains.

 

This growth has been anchored in sustainable farming practices, cutting-edge traceability systems, and a relentless focus on farmer empowerment – proving that ethical agribusiness can thrive at scale. But as Guillaume readily acknowledges, rapid expansion brings its own hurdles. From managing fragmented harvests to ensuring consistent quality across thousands of farms, TSA’s success has been hard-won. The question now is not just how far TSA can grow – but how its model can redefine agricultural value chains across the continent.

 

From cash flow to community uplift

 

Agriculture demands liquidity at harvest peaks. CFC’s working capital facility filled this critical need, ensuring TSA could procure nuts-in-shell (NIS) when farmers needed income most. But CFC’s support extended beyond finance. “The team really engaged with what we were doing on the ground,” Guillaume says, noting that TSA’s model goes beyond buying nuts – it’s about reshaping rural livelihoods.

 

A proprietary traceability system used by TSA ensures that each nut can be traced from farmer to export. TSA’s 50+ agronomists and field officers deliver training, support certifications, and distribute seedlings at subsidized prices through 25 collection centres, which also offer de-husking machines for the smallholders at no cost. These hubs improve efficiency and strengthen the ethical foundation of the supply chain.

 

To address the issue of smallholders selling produce prematurely due to financial constraints, Guillaume explains, “Last year, we began discussions with a bank to create a farmer pre-financing program. If school fees are due in January but the purchase season starts in March, farmers are forced to sell early to brokers at very low prices. With pre-financing, we smooth that cashflow mismatch and help farmers earn what they deserve.”

Reframing the outgrower model

 

Unlike many contract farming schemes, TSA’s approach is deliberately non-coercive. Farmers are free to sell to any buyer, but TSA’s value-added services and premium pricing – typically 15-20% above market – make it the partner of choice. It is referred to as a ‘smallholder programme,’ a holistic system of support, not obligation.

 

This voluntary structure is becoming increasingly important under new EU regulations that require farmers to be grouped. Historically working with individuals, TSA is now forming formal groups while maintaining direct traceability and payment structures. “It’s complex and expensive,” Guillaume admits, “but it's the future of compliance and market access.” Warehouses, equipment, and administrative capacity will have to be scaled to meet these demands.

 

Photo: Adobe Stock

As part of its inclusive strategy, TSA is also piloting procurement of additional crops such as organic peanuts. “Our farmers need income diversification to manage risk,” Guillaume notes. “Peanuts come with challenges like aflatoxins, but we’re working closely with our teams and customers to build this new value chain responsibly.”

 

Weathering the macadamia market crisis

 

The years 2022 and 2023 saw an unprecedented oversupply of macadamia nuts, causing prices to plunge from USD 18/kg to just USD 8 or USD 9/kg. The combination of excess inventory and sluggish global demand left the market in dire straits. “There was no market,” Guillaume states bluntly.

 

Despite the downturn, TSA maintained its operations, continuing to purchase nuts – albeit in smaller quantities – and retaining its entire workforce. Rather than idling, the company seized the opportunity to optimize its processes. "We used the downtime to improve everything – our yields, raw material management, and operational efficiency," Guillaume explains. This strategic approach allowed TSA to emerge stronger, turning a challenging period into a chance for refinement and growth.

 

Product diversification: turning waste into value

 

TSA is tackling up to 30% nut wastage – caused by immature seeds, insect damage, or mould – through innovative product diversification. Damaged nuts are pressed for cosmetic-grade oil, chopped and sold at discounted prices, or repurposed into nutrient-rich macadamia flour for use in bakeries. These efforts reduce losses and create new product lines that enhance both sustainability and profitability. TSA aims to reduce wastage to 15-20%, which will increase the value of the harvest and farmer income.

 

Towards a multi-crop future 

 

The company has launched pilot programs for organic peanuts, with early harvests underway. The move enables income diversification and reduces dependency on a single commodity. “It’s high risk, especially with aflatoxin issues,” says Guillaume. “But we’re solving that with close monitoring.”

 

If successful, these pilots could lay the foundation for a diversified smallholder supply chain, aligned with TSA’s traceability and quality-first model.

Looking ahead: building stronger systems through diversification and decentralization

 

TSA’s future strategy rests on diversification, decentralization, and systemic change. The goal is to reduce commodity dependency and empower smallholder communities to become resilient, self-reliant, and sustainably productive.

 

TSA is exploring additional value chains such as avocado and mango, alongside macadamia. Over 1 million cashew seedlings have been distributed in the past, and TSA now produces macadamia, avocado, and mango seedlings – growing over 200,000 seedlings annually. Instead of centralizing seedling production, In the coming year, TSA plans to support farmer groups to develop local nurseries. With training and support, these groups can manage nurseries themselves – making seedling access more local, equitable, and scalable.

Photos: Stephen Kioko

This decentralization also shapes TSA’s training approach. Delivered one-on-one or in groups of up to 100, sessions cover regenerative organic practices across all crops. Farmers learn to prune trees, apply safe organic inputs, and use vermicomposting to improve soil health.

As Guillaume Maillard notes, “Organic doesn’t mean doing nothing – it means doing the right things, using the right organic products, and nurturing stronger plants for the long term.”

 

To support these efforts, TSA plans a major upgrade to its processing capacity, enabling product diversification like oil pressing and flour production for consumption by bakeries, as well as specialized processing for new crops. However, this scale of growth requires more than strategy – it requires support.

 

Currently self-financed, TSA needs both technical and financial assistance. Additional expertise is essential for nursery development and operational efficiency. Financial support would accelerate the scale-up of services and impact.

 

According to Guillaume, a transformative proposal would be the establishment of a national stabilization fund for Kenya’s macadamia sector. Farmers currently face highly volatile prices – ranging from KES 80 to 150 per kilogram – which undermines long-term planning. A stabilization mechanism, supported by profits generated in good years, could provide a minimum guaranteed price. This would cushion farmers against market shocks and encourage more predictable, sustained investment during low-performing years.

 

Shared growth, shared purpose

 

TSA’s story is one of resilience and collective success. By prioritizing traceability, certification, and farmer empowerment, the company is redefining sustainable agriculture in East Africa. With the right support, TSA plans to double its purchase volumes by 2028 – reaching 850 metric tons annually – and create new economic opportunities for thousands of smallholder farmers.

 

Guillaume reflects with quiet determination: "We’re building something enduring. This isn’t just about profits – it’s about people, the planet, and a more equitable supply chain. That’s the vision we share with CFC."

Photo: Luis Salgado

In the lush, remote regions of northern Peru, an innovative fusion of climate finance and community-led conservation is redefining forest protection – and the lives of those who depend on them. This transformation is driven by two interconnected initiatives: Café Selva Norte (CSN) and CSN+ (Conservación Selva Norte). Though they serve distinct communities, together they embody a holistic approach to rural development and climate action.

 

Developed and managed by the Canadian environmental finance company Ecotierra, both CSN and CSN+ are funded by the Urapi Sustainable Land Use Fund, a USD 50 million impact investment vehicle. While Ecotierra oversees project design and execution, CSN – a Peruvian coffee processor and trader – serves as the on-the-ground implementer. Central to this initiative is the REDD+ Northern Forest Conservation Project, a pioneering effort that bridges economic opportunity with ecological preservation.

 

This essay explores how this unique model leverages climate finance to empower local communities while safeguarding one of the world’s most vital ecosystems.

 

CSN and CSN+ serve complementary roles:

 

  • CSN provides trade finance to established coffee cooperatives committed to sustainable, deforestation-free agriculture, aiming to strengthen local economies while safeguarding the environment.
  • CSN+ is a REDD+ conservation initiative that funds agroforestry, ecotourism, and silvopasture activities while supporting small and medium-sized conservation areas. These efforts generate carbon credits through avoided deforestation and forest degradation.

While CSN catalyzes growth among organized cooperatives, CSN+ empowers more marginal communities to take the first step in conservation, using a pioneering loan-based model that provides critical early-stage financing. Together, they tackle deforestation at both ends of the development spectrum – supporting those already practicing sustainable agriculture while enabling others to take the first step toward long-term forest protection.

 

“The key barrier for us was the time gap between starting conservation and actually seeing revenue from carbon credits,” explains Luis, Ecotierra’s Director of Nature-Based Solutions and Climate Finance. “We needed a way to fund that critical bridge period – and that’s what CSN+ provides.”

Photo: Luis Salgado

CSN+: bridging the finance gap

 

Through its REDD+ forest conservation project, CSN+ aims to conserve up to 200,000 hectares of forest through agreements with small and medium-sized private stakeholders. But before carbon credits can be generated and sold, these communities must undertake governance improvements, conservation planning, and early-stage productive activities.

 

“This gap between activity and income was a key bottleneck,” explains Luis, Ecotierra’s Director of Nature-Based Solutions and Climate Finance. “We needed a way to fund that critical bridge period”. To address this, CSN+ – with bridge loans supported by USD 290,000 investment from the CFC – has enabled five pilot organizations to launch conservation initiatives immediately. These loans support forest patrols, strengthen governance structures, and fund early-stage sustainable models like ecotourism, agroforestry, and silvopasture.

 

“Many of the communities we work with have enough experience and capacity to move towards sustainable activities,” notes Luis. “But they don’t have the institutional credentials to qualify for conventional finance. We provide that first layer of risk absorption.”

Luis adds that these loans are more than financial tools – they're enablers of credibility and transformation: “This funding absorbs the early-stage risk, giving communities the credibility they need to later access financing.”

 

Beyond carbon: innovating climate finance

 

What sets CSN+ apart is its decision to forgo the common practice of pre-selling carbon credits – a common strategy that often locks in discounted pricing. While many conservation projects raise up-front capital by promising future carbon credits to large corporate buyers, CSN+ leverages loans instead.

 

The credits, certified under Verra’s Verified Carbon Standard (VCS) using methodology VM0015, generate several social and environmental co-benefits – enabling premium pricing for verified biodiversity and social impact.

 

“The carbon market is volatile,” says Luis. “By avoiding pre-sales, we give ourselves the flexibility to wait for favourable market conditions, which ultimately benefits the communities. It also allows us to sell the credits at higher prices, without discounts or unfavourable terms.”

 

Carbon credits are commercialized through ElevaFinca, a Urapi-affiliated platform that also exports CSN’s coffee. This vertical integration lets climate-conscious buyers purchase both physical goods and offset credits from a single origin – aligning conservation with trade.

 

This flexible model has already attracted co-financing: in one case, CSN+ provided one-third of the capital for an ecotourism venture, unlocking two-thirds in co-financing from the Alianza Empresarial para la Amazonía.

 

A pilot with global potential

 

Though still in early stages, CSN+ represents a pioneering model for community-based conservation finance. The first five conservation agreements are laying the groundwork for future expansion, and the goal of protecting 200,000 hectares remains firmly in sight.

 

“It's one of the first projects in the world to use a loan-based bridge finance model for small and medium conservation areas,” says Luis. “If successful, we hope to replicate it across Latin America, especially through our upcoming Urapi 2 fund.”

 

Although currently a pilot project, the success of the REDD+ Northern Forest Conservation Project may lay the groundwork for broader replication. With Urapi’s second fund, Urapi 2, now seeking new opportunities, Ecotierra is looking to scale its model across Latin America and potentially North America and remain open to knowledge-sharing and partnerships that could extend the model globally.

 

“We want to show that climate finance is real,” says Salgado. “That it can be used not just to generate carbon credits, but to build truly sustainable futures – starting from the ground up.”

Building for the long-term

 

A key reason behind the project’s resilience is its co-designed, long-term approach. Unlike top-down interventions, CSN+ builds mechanisms in close collaboration with communities.

 

“We don’t impose a blueprint,” says Luis. “We build these mechanisms with the communities. It’s slower, but it significantly reduces the risk of failure. We want to be with these communities for at least seven more years, to ensure real, lasting change.”

 

Equally important is the link between conservation and market access. “Conservation by itself isn’t enough to pay for conservation,” Luis explains. “We need value chains. We need to connect these communities to markets.”

 

A model for the future of climate finance

 

With catalytic support from the CFC, CSN+ is pioneering a new approach to climate finance – one that bridges local knowledge, innovative funding, and global impact. Despite the modest initial investment, the project demonstrates how small-scale financing can unlock transformative opportunities.

 

Over the next two years, EcoTierra aims to attract additional investors by showcasing climate finance’s potential to deliver both environmental and economic benefits.

 

As the CFC and EcoTierra strengthen their partnership, a powerful truth emerges: conservation and commerce can thrive together. With the right support, local communities can become the most effective guardians of the world’s most vital forests.

 

For the communities of the Peruvian Amazon, this future is already unfolding.

Photo: Luis Salgado

Testimonials

 

Organization: Association for the Conservation of Aguajales and Renacales of Alto Mayo Río Avisado – Tingana (ADECARAM)

 

As a member of ADECARAM and resident of Tingana, I find the Conservación de la Selva Norte (CSN+) project truly transformative. The Bridge Funding Mechanism, backed by CFC, CSN, and Ecotierra, provides critical upfront support that turns our long-term conservation vision into immediate action.

 

This model has empowered us to strengthen forest patrols with drones and GPS technology, replacing guesswork with precise interventions. Beyond equipment, it improves working conditions for our community's forest guardians – ensuring both protection and livelihoods. Most importantly, it validates the value of our decades of conservation work.

 

With this support, we're not just preserving Tingana for future generations; we're demonstrating how carbon projects and climate financing can make community-led conservation thrive.

 

Bercelia Mestanza Cabrera

Founding Member of Tingana

Photo: Luis Salgado

Organization: Campesino Community of Copallín

 

As a founding member of Copallín's Campesino Community, I've witnessed how the Bridge Funding Mechanism – spearheaded by Ecotierra with support from CFC and CSN – helps us balance protection and progress. Unlike traditional development projects with limited impact, the CSN+ carbon project establishes long-term commitment to both conservation and sustainable production. The BFM funds urgent current needs, from patrols to sustainable agroforestry.

 

Our success lies in integrating silvopasture and shade-grown coffee/cacao systems, which reduce deforestation pressures and actually reverse deforestation trends along our conservation area borders. With six vital micro-watersheds originating here, our forest conservation directly safeguards water resources downstream.

 

The mechanism's flexibility allows us to implement innovative approaches like agroforestry and silvopasture, ensuring conservation benefits both ecosystems and families. Through the CSN+ partnership, we're creating a model for lasting impact.

 

Eufemio Ilatoma Sánchez

Coordinator and Founder, Campesino Community of Copallín

 

Photo: Adobe Stock

Transforming Agri-SME finance through the ACT Fund

 

The Agricultural Commodity Transformation (ACT) Fund is the CFC’s flagship USD 100 million blended finance vehicle designed to catalyze sustainable growth for agricultural SMEs (agri-SMEs) in emerging markets. Through a combination of debt financing and technical assistance, the ACT Fund empowers agri-SMEs to strengthen rural livelihoods, promote climate resilience and enhance biodiversity across Africa, Asia, and Latin America.

 

The ACT Fund offers a tailored suite of financial instruments – including trade finance, working capital, and capex loans – to agri-SMEs that serve as vital links between smallholder farmers and high-value markets. A dedicated USD 10 million Technical Assistance Facility further supports investees with capacity building, regenerative agriculture practices, and supply chain traceability.

 

Impact strategy: driving inclusive regenerative agriculture

 

At the core of the ACT Fund’s impact strategy is Inclusive Regenerative Agriculture (IRA) – an approach designed to boost smallholder incomes while addressing climate and biodiversity challenges. The fund integrates IRA through tailored loan financing and technical assistance, enabling agri-SMEs to adopt practices like no-till farming, crop rotation, and agroforestry.

 

These techniques improve soil health, sequester carbon, and enhance climate resilience. The strategy emphasizes inclusivity – particularly empowering women farmers – and is underpinned by a robust monitoring framework to measure outcomes such as productivity, environmental restoration, and improved livelihoods across smallholder communities.

 

SDG aligned impact

 

With the goal to finance 50–70 SMEs, the fund aims to deliver USD 216 million in direct payments to smallholder farmers cultivating 275,000 hectares of farmland sustainably while 1.6 million Mt of CO2 is targeted to be sequestered. With ACT’s financing an additional 23,000 formal jobs will be created at rural SMEs.

 

Progress made in 2024

 

Building on the progress achieved in 2024, we’re entering a pivotal phase as we move toward the ACT Fund’s first closing. As we continue making strides, we want to share key updates highlighting recent milestones and the momentum driving us forward.

 

Fundraising Progress

 

Investor interest in the ACT Fund continues to grow. Four investors are currently active in the ACT data room, with one investor already passing its initial approval for an investment. We remain confident in securing sufficient commitments for the Fund’s first close later this year. Additionally, with the support of the CFC TA Management team, we are actively fundraising for the ACT Technical Assistance Facility.

 

Dealflow Pipeline

 

A robust dealflow pipeline is one of ACT Fund’s key strengths as an established lender in our sector. Currently, we have a total of USD 36 million in debt deals ready for investment. The first transactions will be executed promptly following the Fund’s first closing.

Key ACT Fund Achievements to Date

 

Major achievements that are propelling the ACT Fund forward:

  • Junior tranche approved – The CFC board approved a USD 20 million commitment to the first-loss tranche.
  • Legal structure & documentation completed – Full legal documentation is in place and available for investor review.
  • Data room available – Investors are actively utilizing the dataroom for due diligence.
  • Core team established – A dedicated team is now operational in Amsterdam and Africa, with plans for further expansion post-closing.
  • Investment committee appointed – A strong, independent investment committee is selected.
  • Service providers onboarded – Our legal advisor and external fund administrator have been selected.
  • Climate & Impact Strategy developed – We have formulated a position paper on ACT’s Inclusive Regenerative Agriculture strategy, which underpins our Theory of Change. This paper has been reviewed by external experts and is available for interested investors.
  • Active investor engagement – Several investors are in discussions, supported by ACT’s dataroom containing key fund documentation.

With momentum building toward the launch of the ACT Fund, we are proud of the strong foundation we’ve built and remain committed to creating high impact investment opportunities. The ACT Fund is more than a financial vehicle – it’s a chance to leave a lasting legacy by transforming lives, protecting biodiversity, and combating climate change.

 

To the businesses and brands that thrive because of the hard work of smallholders and grassroots communities – this is your fund too. Here’s your opportunity to give back to those who fuel your success, ensuring they thrive alongside you. Whether you’re an individual, corporation, or private-sector leader, join us in this transformative journey. Invest in their future, strengthen your legacy, and drive measurable social, environmental, and financial returns.

© 2025 - Common Fund for Commodities

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