The Common Fund for Commodities (CFC) and the Agricultural Commodity Transformation (ACT) Fund co-hosted a high-level side event at the 4th International Conference on Financing for Development (FfD4) in Sevilla, Spain. The event, titled “Agricultural Commodity Transformation (ACT) Fund: Public-Private Investment for Sustainable Transformation and Development of the Agricultural Commodity Sector,” convened stakeholders from development finance, investment, and agri-business to discuss the chronic underinvestment in agricultural value chains in developing countries.
The session marked the launch of the ACT Fund, a groundbreaking $100 million blended finance initiative aimed at directing private investment toward high-potential agricultural small and medium-sized enterprises (SMEs) across the Global South. Central to this fund is a $20 million first-loss commitment from the CFC, designed to mitigate investment risks and catalyze broader private sector engagement.
To complement the ACT Fund, a $10 million Technical Assistance Facility was introduced to provide essential support in areas such as capacity building, transparency, and innovation. This facility is intended to enhance the developmental and financial outcomes for both investees and investors by strengthening institutional capacity and improving operational effectiveness.
The event featured a panel of experts, including Mr. Nicolaus Cromme (COO, CFC), Dr. Lisa Sachs (Director, Columbia Center on Sustainable Investment), Mr. Michael van den Berg (Director, ACT Fund), Mr. Fernando Russo (Meraki Impact), Ms. Melanie Machingawuta (TechnoServe), Mr. Dominikus Collenberg (Organic Africa Ltd., Zimbabwe), and Mr. Igor Zelezetskii (BRICS Business Council Task Force on Credit Ratings). The panelists addressed the structural challenges that hinder the flow of long-term capital into developing economies, such as high-risk perceptions and inadequate public investment. They emphasized the need for policy reforms to facilitate finance for sustainable, SDG-aligned growth.
Aligned closely with the Sustainable Development Goals (SDGs), the ACT Fund prioritizes poverty reduction, gender equality, climate action, and biodiversity conservation. Its investment strategy supports regenerative and biodiversity-friendly agricultural practices that foster climate resilience and strengthen value chains in vulnerable regions.
The session also served as a platform for inclusive dialogue, bringing together representatives from governments, international organizations, investors, and agri-SMEs. Discussions centered on innovative financial models and strategic partnerships that can unlock new investment flows and reshape global financial systems in support of sustainable agriculture.
Speakers at the event highlighted a critical gap in the current global financial framework: while sustainable development is gaining attention, existing financial systems are ill-equipped to fund the complex, high-impact investments required in the Global South. Particularly, there is a notable scarcity of long-term, patient capital for agri-SMEs, which play a pivotal role in driving inclusive economic growth, climate adaptation, and food security.
The ACT Fund emerges as a transformative model to bridge this gap. By leveraging blended finance, it integrates public and private resources to de-risk and mobilize capital for sustainable agriculture. Through addressing systemic barriers and enhancing institutional readiness, the fund fosters an environment where agri-SMEs can flourish and contribute meaningfully to global development objectives.
As the 2030 SDG deadline approaches, the ACT Fund stands out as a forward-looking solution. It showcases how effective collaboration between public institutions and private investors can deliver measurable impact where it is most needed, offering a replicable model for future development finance initiatives.
