Call for Proposals: Impact Finance for Global Value Chain to support SMEs in the Commodity Sector

Smallholder farmers in developing countries struggle to add value to what they produce. The SMEs, while sourcing from the smallholders, may address the gaps that smallholders experience in finance, knowledge and information and thereby localizing the development to alleviate poverty.

Mission and Vision

• Mission
  • To contribute to poverty alleviation by strengthening the income-generating capacity of commodity producers and mitigating vulnerability to their economic wellbeing.
• Vision
  • To strengthen and diversify the commodity sector in developing countries and transform it to be a major contributor to poverty alleviation and sustained economic growth and development.
• With poverty alleviation as the mission, the CFC will support proposals investing in poorest and most vulnerable people in the global value chains, which may concern production, processing, financing, marketing, research, and development (R&D), etc.

Funding Information

• Financing can be provided in the form of loans for capital expenditures, working capital or trade finance to invest in productivity and value chain upgrading involving smallholders and/or SMEs. Applications should clearly show operational and financial viability, and be economically, socially and environmentally sustainable.

Expected Results

• The CFC expects that its involvement will enable innovation for positive change in the value chain, providing more income for all participants, securing equitable distribution of benefits, and contributing to social and environmental well-being of its poorest participants at the bottom of the pyramid.

Eligibility Criteria

• Eligible projects are based in one of the CFC Member Countries and intend to contribute to the Sustainable Development Goals by investing in commodity value chains. Successful applications will demonstrate clear and visible potential to achieve sustainable positive impact on the livelihoods of the poorest people who depend on commodities.
• Quality project proposals from LDCs (Least Developed Countries), LLDCs (Landlocked Developing Countries) and SIDs (Small Island Developing States) will be given priority to alleviate more people from poverty.
• The CFC encourages applications proposing innovative solutions for the commodity sector. These may include new agritech applications, agroforestry, agro-ecology themed innovative productivity practices, regenerative technologies, increased availability of renewable and affordable energy, expanding environmental services, expediting digital and green recovery, adding to the nutrition security, climate friendly practices contributing to biodiversity, preventing deforestation, digitalization, financial inclusion, blockchain and other traceability solutions.
• Women entrepreneurs are especially encouraged to apply.

For more information, visit Common Fund for Commodities.