CFC Champions Finance-Driven Transformation for LLDCs at LLDC3 conference in Turkmenistan

Awaza, Turkmenistan – The Common Fund for Commodities (CFC) has concluded a powerful and purpose-driven engagement at the Third United Nations Conference on Landlocked Developing Countries (LLDC3), held from 5–8 August 2025 in Awaza, Turkmenistan.

With 32 Landlocked Developing Countries (LLDCs) facing unique structural and geographic challenges—including high trade costs, limited market access, and commodity dependence—the conference provided a critical platform for rethinking investment and development strategies.

🗣️ CFC Delivers Strong Plenary Statement: A Call for Justice and Transformation

Delivering a statement on behalf of Ambassador Sheikh Mohammed Belal, Managing Director of the CFC, Chief Strategy Officer Mr. Andrey Kuleshov addressed the LLDC3 plenary with a forceful call for fairer finance, inclusion, and global accountability toward the world’s most disadvantaged economies.

The statement framed the challenges faced by LLDCs not merely as geographic limitations, but as systemic inequities in the global financial and trading system.

“The plight of LLDCs is not a logistical inconvenience—it is a structural injustice. Every additional border is a cost. Every extra kilometre to port is a barrier to development,” the statement declared.

Highlighting the CFC’s work in over 24 LLDCs, the statement emphasized the Fund’s mission of “humanizing value chains”—focusing investment on grassroots actors such as smallholders, cooperatives, and agri-SMEs.

The plenary also spotlighted the Agricultural Commodity Transformation (ACT) Fund, a $100 million blended finance facility, backed by a $20 million catalytic contribution from CFC. The ACT Fund was described as a “bankable, high-impact solution” designed to channel affordable capital into agri-SMEs in LLDCs and other vulnerable economies.

“If your development vision does not include landlocked countries—especially the Absolute Sixteens—then it is not a global vision,” the statement concluded.

The CFC also made a direct appeal to development partners and UN agencies to support the Seville Commitment for Value Addition at Origin and to integrate its recommendations—including support for the establishment of a dedicated LLDC Fund—into the conference outcome document.

CFC Hosts Two Strategic Side Events at LLDC3

As part of its commitment to driving sustainable solutions, CFC also hosted two high-impact side events:

1️⃣ Productive Capacities and the EU Deforestation Regulation

📍 5 August | 18:15–19:45
In collaboration with UNCTAD and UNDESA, this session examined the implications of the EU Deforestation Regulation (EUDR) for LLDCs, where commodity exports are central to economic livelihoods.

Participants discussed how the EUDR risks becoming a non-tariff trade barrier, especially for African LLDCs, and proposed ways to build productive capacity, diversify exports, and ensure that global environmental goals do not inadvertently penalize the most vulnerable economies.

2️⃣ Agricultural Commodity Transformation (ACT) Fund

📍 6 August | 13:15–14:45
This session introduced the ACT Fund as a practical solution to address the chronic underfinancing of agri-SMEs. Discussions focused on blended finance, technical assistance, and successful project models like Uganda’s Just Know Your Coffee Cup, supported by the CFC, which demonstrates how targeted investments can enhance value addition and fair-trade practices.

The ACT Fund was positioned as a replicable model for scaling climate-smart, inclusive agriculture and a tool to operationalize the Seville Commitment for Value Addition at Origin, which explicitly calls for voluntary contributions to the CFC.

🔍 Key Takeaways from LLDC3

• Strong global support for the role of blended finance and SME investment in LLDC development.
• Recognition of the ACT Fund as an innovative and scalable mechanism for impact-driven finance.
• Calls for integrating the Seville Commitment and creating a dedicated LLDC Fund with a focus on the Absolute Sixteens.
• Renewed urgency to reform global credit rating systems and unlock the “unwanted billions” locked out of LLDCs due to mispriced risk.

📢 Moving Forward

CFC’s presence at LLDC3 reinforced its dedication to turning barriers into bridges—through financing, partnerships, and policy innovation.

“Finance is not failing for lack of money—it is failing for lack of imagination and fairness,” concludes Ambassador Belal. “CFC stands ready to partner—with LLDCs, with the public and private sector, and with the international community—to turn this moment into momentum.”