German development bank Kreditanstalt für Wiederaufbau (KfW) recently notified MicroCapital that the Fairtrade Access Fund (FAF), which invests in initiatives supporting farmers in developing countries, has issued a trade finance loan of USD 3 million to Enterprise Cooperative Kimbe (Ecookim), a union of 23 cooperatives in Cote d’Ivoire. Established in 2004, Ecookim “purchases, processes and exports cocoa beans from around 12,000 smallholder farmers” across the country. These farmers generally work 5 hectares of land or less.
To qualify for financing from FAF, investees must acquire third-party certification that they meet environmental, labor and other standards. FAF was launched in 2012 by German NGO Fairtrade International; the US-based Grameen Foundation; KfW; and Incofin Investment Management, a Belgian for-profit microfinance investment manager. As of December 2016, the fund reports USD 28 million in loans outstanding to cooperatives, microfinance institutions, traders and processors in 16 countries in Latin America and Africa.
By Matthew O’Neill, Research Associate
Sources and Additional Resources:
Information provided directly to MicroCapital by KfW.
About Ecookim:
http://ecookim.com/
Fairtrade Access Fund:
https://www.incofin.com/en/fund/fairtrade-access-fund
About FLO-Cert:
http://www.flocert.net/about-us/our-role-in-the-fairtrade-system/
MICROCAPITAL BRIEF: Starbucks to Commit Additional $30m to Global Farmer Fund Program; Fairtrade Access Fund, Root Capital to Assist with Loans to Coffee Farmers:
https://www.microcapital.org/microcapital-brief-starbucks-to-commit-additional-30m-to-global-farmer-fund-program-fairtrade-access-fund-root-capital-to-assist-with-loans-to-coffee-farmers/
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