The German Federal Ministry for Economic Cooperation and Development, which is also known by its German acronym BMZ, recently launched the Agri-Finance Liquidity Facility (ALF), a debt facility of EUR 40 million (USD 46.7 million), to support the “sustainable agri-food value chain” in Africa and Latin America during the COVID-19 pandemic. BMZ and Kreditanstalt für Wiederaufbau (KfW), a state-owned development bank in Germany, will fund ALF while Belgium-based Incofin Investment Management (IM) will manage it.
Founded in 1961, BMZ focuses on economic development in Germany and approximately 60 other countries. For 2020, BMZ has a total budget of EUR 508 billion (USD 593 billion).
KfW was founded in 1948 and is owned by the federal and local governments of Germany. At the end of its 2019 fiscal year, KfW held EUR 506 billion (USD 590 billion) in total assets, having disbursed EUR 69.1 billion (USD 80.7 billion) in loans. Of its budget, 43 percent was allocated for promoting businesses within Germany.
Founded in 2001, Incofin is a for-profit firm that seeks “to promote inclusive progress.” As of January 2020, it has 320 investees in 66 countries, mostly active in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo (FPM), Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk bank.
By Romil Pandey, Research Associate
Sources and Additional Resources
Incofin profile on ALF
http://www.incofin.com/alf/
Incofin homepage
https://www.incofin.com
KfW homepage
https://www.kfw.de
KfW 2019 financial report
https://www.kfw.de/PDF/Download-Center/Finanzpublikationen/PDF-Dokumente-Berichte-etc/1_Gesch%C3%A4ftsberichte/KfW_FB_2019-2.pdf
BMZ homepage
https://www.bmz.de
BMZ financials
https://www.bundeshaushalt.de/#/2020/soll/ausgaben/einzelplan.html
Past MicroCapital article on Incofin
https://www.microcapital.org/microcapital-brief-incofin-loans-3m-to-cooperativa-pacifico-for-microfinance-in-peru/
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