The eco.business Fund in Latin America and the Caribbean has received a fourth investment from the German Development Bank KfW on behalf of the German Federal Ministry of Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung, BMZ) in the amount of USD 16.6 million, bringing its total investment in the fund to USD 67 million.
Since the eco.business Fund was established in December 2014, BMZ has been a staunch supporter of the impact investment fund’s mission to conserve biodiversity, promote the sustainable use of natural resources, and mitigate and adapt to climate change. The eco.business Fund’s blended finance structure enables the use of public contributions from partners like BMZ to mobilize private investment for positive impact. To date, the eco.business Fund has invested USD 333 million across seven countries in Latin America and the Caribbean to support environmentally responsible business practices, especially sustainable agriculture. Moreover, the eco.business Development Facility supplements the fund’s investments with in-region technical assistance to anchor and amplify its impact; BMZ is a key investor facilitating these activities, as well.
“We are very pleased by the impact the eco.business Fund has attained since its inception in 2014,” said Prof. Dr. Claudia Warning, Director General for Middle East, Asia, Latin America, South-Eastern and Eastern Europe for BMZ. “As a seed investor, BMZ has accompanied the fund’s development with great interest. The new equity investment will allow the eco.business Fund to continue its impressive growth and to further contribute to the greening of Latin American economies.”
Chairman of the eco.business Fund Board Dr. Jens Mackensen said: “The BMZ is and has always been an invaluable partner in the success story of the eco.business Fund. Thanks in part to this collaboration, we have enabled the financing of 160,000 hectares of farmland under sustainable management. We are proud to be mobilizing the resources for positive impact together.”
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
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 Latin America and the Caribbean has received further support from the European Commission. The sub-fund’s additional investor base comprises IDB Invest, a member of the Inter-American Development Bank (IDB) Group, the U.K. government’s Department for Environment, Food and Rural Affairs, Dutch development bank FMO, Austrian development bank OeEB, and institutional investors such as sustainable banking institution ASN Bank, German ethical bank GLS Bank, Calvert Impact Capital, and Raiffeisen Bank International. Finance in Motion, a leading impact investing company, is also an investor.
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.
For more information please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund.