CFC and China Discuss Stronger South-South Cooperation under CFC 2.0
The Hague, 23 March 2025 – Ambassador Caroline Kitana Chipeta, Ambassador of the United Republic of Tanzania to the Netherlands and Chair of the CFC Governing Council; H.E. Mr. J. Eduardo Malaya, Ambassador of the Philippines to the Netherlands and Chair of the CFC Executive Board; and Ambassador Sheikh Mohammed Belal, Managing Director of the Common Fund for Commodities (CFC), paid a strategic partner visit to the Embassy of the People’s Republic of China in The Hague, where they met with H.E. Mr. Shen Bo, Ambassador of China to the Netherlands, accompanied by Mr. Jin Yuan, Counsellor, and Ms. Yu Bojue, Economic and Commercial Officer.
The meeting underscored the longstanding importance of cooperation among countries of the Global South, including the historic role of the Group of 77 and China in shaping collective approaches to development, commodities, and international economic cooperation. Participants recalled that this tradition of solidarity and institution-building helped lay the groundwork for mechanisms such as the CFC and noted that this legacy remains highly relevant as the Fund enters a new phase under CFC 2.0.
Discussions focused on the transformation of the CFC, the growing demand for its work, and the opportunity to deepen cooperation with China in support of commodity-dependent developing countries. The meeting noted that the CFC today is more agile, more partnership-oriented, and institutionally strengthened following the entry into effect of the amended Agreement establishing the Common Fund for Commodities.
Ambassador Caroline Kitana Chipeta emphasized the scale of the Fund’s recent transformation and its importance for the future. She noted that “the CFC has undergone a major transformation, and this is a moment to honor the vision of its founding fathers while moving forward to make the institution stronger.” She added that “this transformation has been led by the Global South, and it reflects a shared determination to equip the CFC for a more relevant and practical role in development cooperation.”
Ambassador J. Eduardo Malaya recalled China’s close engagement with the Fund and the broader process of institutional renewal. He stated that “China has always been close to the CFC. In fact, the strategic framework that has now been adopted was discussed here at the Embassy of China, where we gathered last year.” He added that “with CFC 2.0, the amended Agreement now in effect, and the activation of the Fund’s renewed framework, the horizon before us is clear: this is the time to reaffirm our collective commitment and strengthen support for the CFC.”
Ambassador Belal stressed that the CFC is facing very strong demand for its financing and technical support, with calls for proposals generating far more applications than the Fund can currently accommodate. He noted that this demand reflects the continuing need for practical, impact-oriented investment that improves livelihoods, strengthens rural economies, and supports local value addition in commodity sectors.
He further highlighted the Fund’s distinctive role in addressing the “missing middle” in development finance, particularly for smallholders, producer organizations, cooperatives, and rural SMEs that are often underserved by conventional financial instruments. Referring to the CFC-supported saffron project in Afghanistan, Ambassador Belal noted that “this is an example of the kind of high-risk but high-impact work the CFC is prepared to do, helping farmers shift from opium cultivation to saffron production, add value locally, retain income in communities, and create a more sustainable livelihood base.” He added that “the CFC has a proven model, and the question now is how we can work together to de-risk finance and make more capital available where it is needed most.”
Ambassador Belal also underlined the human dimension of commodity development, emphasizing the importance of more humane and equitable value chains. He noted that many farmers and rural producers still receive painfully low incomes despite their central role in global commodity systems, and that the CFC’s mission is to help build value chains that are more inclusive, more resilient, and more development oriented.
The meeting further explored practical avenues for cooperation between the CFC and China, including possible collaboration through South-South cooperation mechanisms, China-supported development initiatives, and platforms linked to international development finance and technical assistance. Discussions also touched on support for the activation of a Junior Professional Officer programme and other forms of capacity-building cooperation that could help strengthen the CFC’s future operational reach.
Ambassador Shen Bo reaffirmed China’s commitment to the Global South and to strengthened cooperation with the CFC. He stated that “China is itself a member of the Global South, and China has always supported cooperation among developing countries.” He added that “there is scope for us to do more together. China has many cooperation mechanisms and remains ready to provide support in practical ways, including to promote local value addition and stronger development outcomes.”
Ambassador Shen further noted that “the way forward is to strengthen practical cooperation through South-South cooperation, with clear means of implementation and a shared commitment to development impact.”
Both sides agreed on the importance of continued dialogue to identify concrete pathways for cooperation, with a view to strengthening commodity value chains, expanding support to rural producers and SMEs, and advancing poverty reduction and sustainable development across the Global South.
About the Common Fund for Commodities (CFC)
The CFC is a UN-affiliated international financial institution based in Amsterdam, working in over 100 countries to support inclusive economic development through impact investing in commodity value chains.
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