The Food Securities Fund was one of the three Non-Grant Instruments (NGI) approved by the Global Environment Facility (GEF) Council in December 2019. The global emerging markets fund, which starts with a focus on Sub Saharan Africa, was deemed to be well-aligned with GEF focal areas, including on land degradation, biodiversity, and climate change mitigation.
In recognition of this, the GEF Council approved a commitment of USD 15 million to the Fund, with Conservation International acting as its agency. This funding will be unlocked by commitments from an anchor investor, which Clarmondial will announce in the coming weeks.
Clarmondial has designed the Food Securities Fund to create significant and measurable impact through its innovative value chain finance approach. Its targets include:
- positively impact the lives of farmers – and especially smallholder farmers and women;
- support local SMEs to grow the number of employees and training, notably for women and youth;
- contribute to the restoration of agricultural land;
- help to implement sustainable agricultural practices; and
- mitigate greenhouse gas emissions.
Gustavo Fonseca, Director of Programs at the Global Environment Facility, said: “The Global Environment Facility is pleased to support this innovative blended finance strategy that demonstrates the opportunity to mobilize private sector capital at scale for urgent environmental issues.”
Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International, said that “Conservation International takes an active role in supporting new investment vehicles that can contribute meaningfully to environmental objectives. We look forward to supporting Clarmondial on the implementation of the Food Securities Fund.”
Fred Werneck, co-founder of Clarmondial, said that “The Global Environment Facility and Conservation International will provide critical support to the Food Securities Fund. Their commitment highlights the social and environmental credentials of the Fund”.
* This announcement does not constitute an offer or solicitation to any person in any jurisdiction to purchase or sell any shares. No information in this announcement should be construed as providing financial, investment, tax or other professional advice.