Fund receives 67 USD million from BMZ and KfW to support sustainable practices in Latin America and sub-Saharan Africa

Luxembourg, 10 March 2023 – The Fund has received investments for an aggregate amount of USD 67 million from its strategic partners, the German Federal Ministry of Economic Cooperation and Development (BMZ), acting through KfW Development Bank (KfW), and KfW on its own behalf. The BMZ via KfW contributed Junior Shares in the amount of USD 16.0 million to the sub-fund for Latin America and the Caribbean, USD 24.4 million to the sub-fund for sub-Saharan Africa, and a donation of USD 2.1 million to fund’s Development Facility in Latin America and the Caribbean. KfW invested Senior Shares to the sub-fund for Latin America and the Caribbean in the amount of USD 25.0 million. 

The BMZ, the KfW and Fund have joined forces for positive environmental impact since the fund’s establishment in 2014. The fund employs a blended finance structure to mobilize private investments for sustainable development by leveraging capital from impact-oriented public entities such as the BMZ and KfW. The new investments will contribute to the fund’s delivery on its mission of promoting 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 in sub-Saharan Africa. The contribution from the BMZ for the fund’s Development Facility in Latin America will further augment the impact of the fund’s investments through technical assistance.

In 2022, the Fund had assets under management of around USD 745 million across both sub-funds. It reported a contribution of over 1.020.000 hectares of farmland under sustainable management, and 36 million tons of CO2 stored by agroforestry activities as of 30th June 2022.  The Latin American and the Caribbean sub-fund has generated positive environmental impact in the region for more than eight years, while the sub-Saharan Africa sub-fund has put into practice since more than 3 years a special focus on investments in forest and landscape restoration projects that boost ecosystem function while supporting sustainable agricultural value chains.

Michael Evers, Chairperson of the Board of Directors of the Fund, stated: “We are honored by this renewed investment in the Fund, and grateful for the long-term partnership with BMZ and KFW. The continuous support is a testament to the fund’s track record of conserving biodiversity and protecting ecosystems against climate change in Latin America, the Caribbean and in sub-Saharan Africa. This latest capital boost will support business and consumption practices that contribute to biodiversity conservation.”

Alexandra Albin, Head of Division Equity and Regional Funds in KfW stated: “The Fund makes a major contribution to alleviating the pressure on nature and containing the consequences of intensive agriculture, deforestation and uncontrolled fishing. The innovative fund structure also leverages private capital for sustainable production practices.  

About the Fund

The 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 and the Caribbean, and sub-Saharan Africa.

The fund pursues its mission by providing dedicated financing and technical assistance to financial institutions and businesses committed to sustainability and focuses on four economic sectors: agriculture and agri-processing, fishery and aquaculture, forestry, and sustainable tourism.

By leveraging the power of blended finance, the fund is able to amplify its impact and outreach by drawing its capital from various layers and investing either via financial intermediaries or directly in businesses.

An impact investment fund advised by Finance in Motion, the 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) and the European Union.

The fund’s impact management system, through its advisor, Finance in Motion, underwent an independent verification by impact auditor BlueMark affirming strong Operating Principles for Impact Management alignment in 2021.

For more information, please visit and follow us on Twitter @ecobusinessfund

About KfW: 

KfW is a German promotional bank and one of the world’s leading promotional banks. It was founded in 1948 and is 80% owned by the Federal Government and 20% by the federal states.

The business sector KfW Development Bank carries out Financial Cooperation (FC) projects with developing countries and emerging economies on behalf of the German Federal Government. KfW Development Bank employs approximately 1,000 people at the head office in Frankfurt am Main and almost 400 specialists at more than 60 international locations, who cooperate with partners all over the world. Their goal is to combat poverty, secure peace, protect the environment and the climate as well as ensure fair globalisation. KfW is a competent and strategic adviser for current development policy issues.

About Federal Ministry for Economic Cooperation and Development (BMZ): 

Within the federal government, the BMZ is responsible for German development policy. The Sustainable Development Goals (SDGs) of the United Nations and the Paris Climate Agreement form the framework for our actions. Our focus is on fighting poverty and hunger, and a commitment to healthy people in a healthy environment. The BMZ sees itself as a transformative ministry working to support the worldwide transformation to a sustainable, climate-friendly and nature-friendly way of doing business whilst at the same time strengthening peace, freedom and human rights. To this end, we coordinate our bilateral cooperation with our partner countries worldwide and promote strong multilateralism based on the SDGs. In respectful cooperation with one another, we want to change structures in those partner countries and globally in ways that make a better life possible for everyone.

Media contact Fund
Anne Johnson
Senior Officer, Marketing & Communications
Phone: +49 (0)69 / 271 035-742


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