Fairtrade Access Fund

Equity : October 2019

The Fairtrade Access Fund is a social impact, evergreen multi-regional debt fund.

Amount

€ 3,000,000.00

Type of investment

Equity

Development impacts

  • Local economic growth
  • Private sector consolidation/innovation
  • Financial inclusion
  • Food security & rural development
  • Fight against climate change and preservation of natural resources
  • Promotion of ESG best practices

Beneficiary locations

Latin America and Caribbean: Bolivia, Brazil, Colombia, Ecuador, Guatemala, Honduras, Nicaragua, Paraguay, Peru
Sub-Saharan Africa: Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Tanzania, Uganda

Investment field

Investment Companies & Funds

Activity

SME Fund

Organisation

Fairtrade Access Fund

Domicile

Belgium

The Fairtrade Access Fund (FAF) is a regulated evergreen fund founded in 2012 and operates in Latin America and Africa, offering lending products for cooperatives, processors and agricultural exporters who work primarily with smallholder farms and have a strong commitment to sustainable development. The fund currently supports around 250,000 sustainable and Fairtrade certified farmers.

The FAF aims to achieve the following objectives:

  1. Contribute to the development of a fair and sustainable agriculture sector.
  2. Address the financial needs and technical assistance of smallholder farmers by providing better access to financing (especially long-term capital) to improve their operations, to gain access to sustainable markets and provide critical information to enhance and improve their yields, prevent or mitigate the impact of diseases etc.
  3. Provide a fair return to investors.

Portfolio

Since its inception, the fund’s portfolio has grown steadily with a strong focus on portfolio quality and diversity. It established a firm foot-hold in the agricultural finance space by developing a multi-regional and multi-crop portfolio, with following focus:

  • Investee type: the portfolio is comprised of producer organizations, traders/processors, agricultural focused microfinance institutions and Fairtrade plantations
  • Product: offering a combination of trade finance, working capital and long term loans.
  • Crops: well diversified with investments in over 11 different crops.
  • Geography: investments in over 19 countries across Latin-America and Africa.

Development impacts

  • Local economic growth

    The fund provides part of its financing in form of long-term loans to players that traditionally face difficulties to obtain long-term finance for infrastructure projects.

  • Private sector consolidation/innovation

    Through its loan products the fund serves smallholder farmers and cooperatives that have been underserved so far and that crucially need financing in form of trade, harvest and long-term finance to stabilize their income streams.

    The fund manager is an established partner of BIO and has ample experience in providing financial services to the food & agricultural sector. The other international sponsors of the fund add valuable expertise as well.

    The fund provides technical assistance through a TA facility to enhance the investees' productivity, support certifications and improve governance.

  • Financial inclusion

    Part of the fund’s portfolio is directed towards financial services providers that are not themselves part of the agricultural value chain but provide supporting services to producers and that address fair trade or sustainable certified smallholder farmers.

  • Food security & rural development

    The fund's focus on sustainable and Fairtrade certifications ensures that farmers receive a premium on their produce, insuring them against fluctuations in the world prices and providing sustainable incomes.

  • Fight against climate change and preservation of natural resources

    Through its investments in sustainably certified agricultural projects the fund supports the conservation of natural resources and biodiversity.

  • Promotion of ESG best practices

    All investees are Fairtrade and/or sustainable certified or in the process of obtaining the certification.

    Fairtrade Standards encourage democratic leadership, administrative efficiency, transparent accounting and improved governance.

View more of our investments in this region

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Fidelity Bank Ltd.

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  25,075.00

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  Subsidy

Fidelity Bank Ltd.

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  14,433,000.00

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  20/12/2016

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ACEP Group

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  4,100,000.00

  Burkina Faso, Cameroon, Madagascar, Niger, Senegal

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Verod Capital Growth Fund III

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Verod Capital Growth Fund III

  8,733,600.00

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ARPE Ltd.

Infrastructure

ARPE Ltd.

  8,236,550.00

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EFC Uganda

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  285,933.00

  Uganda

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EFC Uganda

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EFC Uganda

  1,000,000.00

  Uganda

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African Rivers Fund

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  4,118,275.00

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  9,426,443.00

  Uganda

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Africa Renewable Energy Fund

Investment Companies & Funds

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  8,896,000.00

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Beyond the Grid Solar Fund

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Beyond the Grid Solar Fund

  4,175,007.50

  Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Nigeria, Rwanda, Tanzania, Uganda

  26/10/2017

  Debt

Azito Energie

Infrastructure

Azito Energie

  15,000,000.00

  Côte d'Ivoire

  19/07/2019

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Agri-Vie Fund II

Investment Companies & Funds

Agri-Vie Fund II

  6,552,700.00

  Kenya, South Africa, Tanzania, Uganda, Zambia

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Adenia Capital IV LP

Investment Companies & Funds

Adenia Capital IV LP

  9,000,000.00

  Côte d'Ivoire, Ghana, Madagascar

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  Equity

ACEP Group

Financial Institutions

ACEP group

  67,512.00

  Burkina Faso, Cameroon, Madagascar, Niger, Senegal

  23/07/2019

  Subsidy

TLcom TIDE Africa

Investment Companies & Funds

TIDE Africa

  4,367,820.00

  Kenya, Nigeria

  28/06/2019

  Equity

Ethos Mezzanine Partners 3

Investment Companies & Funds

Ethos Mezzanine Partners 3

  8,868,980.00

  Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, South Africa, Tanzania, Uganda, Zambia

  13/06/2019

  Equity

Compagnie Africaine de Crédit

Financial Institutions

Compagnie Africaine de Crédit

  4,200.00

  Côte d'Ivoire

  28/01/2019

  Subsidy

Azito Energie

Infrastructure

Azito Energie

  17,760,600.00

  Côte d'Ivoire

  18/10/2012

  Debt

Enko Education

Enterprises

Enko Education

  2,000,000.00

  Burkina Faso, Cameroon, Côte d'Ivoire, Mali, Mozambique, Senegal, South Africa

  20/09/2018

  Debt

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  5,000,000.00

  Côte d'Ivoire, Ghana, Madagascar

  28/02/2012

  Equity

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  100,000.00

  Côte d'Ivoire, Ghana, Madagascar

  19/05/2016

  Subsidy

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  150,000.00

  Côte d'Ivoire, Ghana, Madagascar

  28/09/2012

  Subsidy

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  449,000.00

  Ghana

  29/12/2010

  Debt

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  4,300,000.00

  Ghana

  02/06/2015

  Debt

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  41,603.00

  Ghana

  16/03/2016

  Subsidy

Moablaou

Enterprises

Moablaou

  600,000.00

  Burkina Faso

  30/01/2007

  Debt

Moablaou

Enterprises

Moablaou

  100,000.00

  Burkina Faso

  17/02/2009

  Debt

Compagnie Africaine de Crédit

Financial Institutions

Cofina Ivory Coast

  3,000,000.00

  Côte d'Ivoire

  15/03/2019

  Debt

Compagnie Africaine de Crédit

Financial Institutions

Cofina Ivory Coast

  3,000,000.00

  Côte d'Ivoire

  15/03/2019

  Debt

Zoscales Fund I

Investment Companies & Funds

Zoscales Fund I

  4,169,100.00

  Ethiopia, Kenya, Rwanda, Tanzania, Uganda

  18/04/2019

  Equity

7 Hills

Enterprises

7 hills

  77,000.00

  Uganda

  05/10/2006

  Subsidy

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  620,000.00

  Tanzania

  01/08/2007

  Equity

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  145,000.00

  Tanzania

  05/02/2009

  Equity

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  1,500,000.00

  Tanzania

  15/09/2009

  Debt

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  274,000.00

  Tanzania

  25/02/2010

  Equity

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  225,000.00

  Tanzania

  28/06/2012

  Equity

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  425,000.00

  Tanzania

  30/05/2013

  Equity

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  100,000.00

  Tanzania

  01/12/2007

  Subsidy

AccessBank Tanzania Ltd.

Financial Institutions

AccessBank Tanzania

  13,700.00

  Tanzania

  26/03/2012

  Subsidy