ForestEffect Fund I and II
Do you wish to expand your SME onto an emerging market? Are you struggling to obtain financing for your project? The ForestEffect Fund (FEF) is here to help .
FEF is a public-private investment fund that assists Dutch Small and Medium-sized Enterprises (SMEs) in their investments within emerging as well as developing countries. This fund specialises in SMEs that benefit local economies in emerging countries (DGGF countries) and that comply with international guidelines on corporate social responsibility.
The Dutch Good Growth Fund (DGGF) started endorsing FEF in late 2016. DGGF has invested in FEF by issuing a loan of €6 million, doubling the investment amount of private shareholders in the fund. FEF invests this amount in Dutch and local businesses within DGGF countries, which are then able to expand their activities.
ForestEffect also manages another fund, the Sustainable Supply Chain Fund. DGGF invests in this fund by issuing a loan of €15 million, doubling the investment amount of private investors to a total fund size of €30 million.
Who can apply for financing from the ForestEffect Fund?
- is active in the agricultural sector, particularly coffee, nuts, and so on. You are aiming to improve the whole of your production and value chain as well as its sustainability. To that end, you can invest in "enablers", which will support this process. Examples are support facilities for executing parties, such as satellite information provision to local farmers;
- is active in East and/or West Africa;
- has a competent and experienced team;
- carries out commercially and economically feasible projects;
- is keen on contributing to economic and social improvements on emerging markets;
- complies with the guidelines of the Organisation for Economic Co-operation and Development (OECD);
- applies the labour standards of the International Finance Corporation (IFC).
Investments by ForestEffect start at €350,000 and are preferably based on milestones. Its priorities are not attuned to very early-stage enterprises and financing.
The fund assesses potential projects on their economic and commercial feasibility as well as their local impact. Qualified professionals at FEF assess the environmental, social and governance (ESG) goals. Their colleagues take care of due diligence, selection and execution in relation to transactions.
Investment in emerging markets of East and West Africa
Apart from financial investments, the fund will support your business by means of practical knowledge, experience and access to its network, including in the food industry. Many of its investments result in supplementary public and/or private financing, which allows you to expand your business activities further. This expansion will boost local economies, create new jobs, improve vocational skills, enhance productivity and increase the return for your business.
Through the expertise of investors and governmental bodies, ForestEffect actively enables SMEs to enter emerging markets. FEF is especially aimed at Africa, a continent in which Dutch banks and investors are often reluctant to become involved. The fund manages to reach these markets via a strong network of relevant local contacts and local knowledge, with potential beneficial effects on the fund and its investee companies as well as locally active parties. FEF has its registered office in The Hague.
Interested in financing from the ForestEffect Fund?
FEF has already financed a range of transactions. The fund is always looking for new projects that aim to introduce products on new markets or to improve the sustainability of products within the value chain together. Do you wish to expand your business on an emerging market? Are you struggling to obtain financing for your project? If so, do not hesitate to get in touch with partner/founder Walle Oppedijk van Veen: email@example.com.