KfW Development Bank invests USD 25 million in eco.business Fund to advance climate-resilient agribusiness in sub-Saharan Africa
Luxembourg and Frankfurt am Main, 30 October 2024 — The eco.business Fund, an impact investment fund advised by Finance in Motion, has secured a $25 million investment from KfW Development Bank to promote sustainable agribusiness practices in sub-Saharan Africa. This investment in Senior Shares will support the adoption of biodiversity-friendly and climate-resilient methods within agribusiness value chains across the region. The signing took place at a small ceremony during the UN Biodiversity COP 16 in Cali, Colombia where the eco.business Fund’s team was invited on various panels to share their expertise in financing biodiversity conservation and climate-resilient agribusinesses.
In a region like sub-Saharan Africa which is rich in biodiversity with significant reliance on agriculture, sustainable practices are essential not only for environmental preservation but also for economic growth, as they allow local producers to access international markets through sustainability certifications. KfW Development Bank’s investment underscores the bank’s commitment to climate resilience and sustainable development in sub-Saharan Africa, reinforcing a collaborative mission with the eco.business Fund to foster a thriving, sustainable agribusiness sector.
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America, the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco.business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism. Target beneficiaries are those that hold an eligible sustainability certification or those taking out a loan to make eligible sustainable investments in their operations.
Operating together with each of the two sub-funds, are two development facilities that provide high-impact technical assistance to investment partners and final borrowers.
An impact investment fund advised by Finance in Motion, the eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ).
The sub-fund for sub-Saharan Africa was formally launched in 2020 with initial funding from BMZ.
The sub-fund for Latin America and the Caribbean has received funding from the European Commission as well as from numerous other prestigious development finance institutions and institutional investors.
For more information please visit www.ecobusiness.fund
About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
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