Project detail - Fairtrade Access Fund SA, SICAV-SIF

Who is our prospective customer?

Fairtrade Access Fund S.A., SICAV-SIF (FAF) is a Luxembourg-based evergreen impact debt fund established in 2012 that provides financing to agricultural enterprises, producer organizations, cooperatives, and selected agricultural microfinance institutions operating in emerging markets. FAF focuses on sustainable agricultural value chains in Latin America, Africa, and Asia, with an emphasis on smallholder farmer inclusion and certified or sustainability-oriented production systems. The fund provides trade finance, working capital, and longer-term financing solutions tailored to agricultural businesses and producer organizations. FAF is managed by Incofin Investment Management, a Belgium-based impact investment manager with extensive experience in financial inclusion, sustainable agriculture and drinking water in emerging markets.

What is our funding objective?

FMO proposes to provide Fairtrade Access Fund (FAF) with a USD 20 million senior debt facility, comprising of a USD 10 million committed facility and a USD 10 million uncommitted revolving facility. The financing will be used to support FAF’s lending activities to agricultural enterprises, cooperatives, producer organizations, and agricultural microfinance institutions in emerging markets. The facilities will support both portfolio growth and seasonal working capital needs within agricultural value chains.

Why do we want to fund this investment?

FMO’s financing will support FAF’s lending activities to agricultural enterprises, cooperatives, producer organizations, and agricultural microfinance institutions serving smallholder farmer value chains in emerging markets. The investment enables FMO to reach underserved agricultural borrowers that are generally below its direct financing threshold. In 2025, FAF-supported investees reached more than 545,000 smallholder farmers. FMO’s investment aims to support activities that contribute to climate mitigation, contributing to SDG 13, in line with FMO’s methodology to determine the green finance attribution. This reflects FAF’s focus on sustainable agricultural value chains and financing activities that promote environmentally sustainable agricultural practices. Additionally, FMO’s investment aims to support activities that contribute to inclusive growth, contributing to SDG 10. This reflects FAF’s focus on strengthening access to finance for smallholder farmer value chains and other underserved agricultural borrowers in emerging markets.

What is the Environmental and Social categorization rationale?

Fairtrade Access Fund is classified as an FMO E&S Risk Category B. The fund’s portfolio consists primarily of loans to agricultural enterprises, producer organizations, cooperatives, and agricultural microfinance institutions operating in emerging markets and sustainable agricultural value chains. Environmental and social (E&S) risk management is focused on ensuring that portfolio activities are aligned with the IFC Performance Standards (PS) while reflecting FAF’s exposure to smallholder-focused agricultural value chains. Key risks relate to land use, labor conditions, biodiversity, and climate resilience at the client and underlying producer level, which can be harder to monitor due to fragmented operations. The most relevant IFC PS are PS1 (Assessment and Management of Environmental and Social Risks and Impacts), PS2 (Labor and Working Conditions), PS3 (Resource Efficiency and Pollution Prevention), and PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources). PS5 (Land Acquisition and Involuntary Resettlement), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are generally not expected to be triggered given the nature of FAF's lending activities. FMO’s approach emphasizes E&S due diligence, risk categorization, and monitoring. Residual risks are mitigated through technical assistance, engagement with investees, and escalation mechanisms where material non-compliance is identified.

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Date	Total FMO financing
3/30/2022	USD 3.50 MLN
1/30/2018	EUR 0.20 MLN
12/23/2013	USD 5.00 MLN