IDH Farmfit Fund

The IDH Farmfit Fund is the world’s biggest public-private impact fund for smallholder farmers.

The Farmfit Fund was created in January 2020 to address the needs and increase the income of more than 3 million smallholder farmers in Sub-Saharan Africa, South-East Asia, Latin America and the Caribbean. The fund’s innovative financing model makes investments in smallholder farmers attractive, it de-risks investments in smallholder farming and helps drive sustainable impact by lowering risks and costs for both farmers and investors.

Facilitated by IDH, the fund is supported by a unique collation of partners, including commercial banks, development banks, government bodies and value chain companies such as Unilever, Mondelez, Jacobs DE. The Fund is backed by significant funding from the Dutch Ministry of Foreign Affairs and guarantees from the US Agency for International Development.

The fund completes IDH’s offer to help companies make the most of their smallholder farming engagement, and the fund operating alongside IDH Farmfit Business Support and IDH Farmfit Intelligence. IDH Farmfit Business Support works with prospective investors to develop sustainable business models and concessional financing, while IDH Farmfit Intelligence provides access to robust data sets.

Innpact has supported IDH in the whole design, structuring and incorporation process of the fund.

• Name: Farmfit Fund B.V.
• Inception: January 2020
• Domicile: The Netherlands
• Initiators: IDH
• Advisor: IDH Investment Management B.V.
• Sector: agriculture, climate finance
• Geographic focus: Sub-Saharan Africa, South-East Asia, Latin America and the Caribbean
• Target investees and end‐beneficiaries: smallholder farmers
• Financial instruments: guarantees, subordinated loans, equity or mezzanine financing
• Type: Debt and Equity Fund
• Info: https://www.idhsustainabletrade.com/farmfit-fund/