This preparatory grant supported the design of financing mechanisms for enterprises engaged in deforestation-free agriculture and sustainable forestry. It funded feasibility studies, pipeline development and a full programme proposal combining affordable finance, technical assistance and performance-based incentives. The Common Fund for Commodities (CFC) developed a project that facilitates access to affordable financing for small and medium-sized enterprises engaged in sustainable agriculture and forestry, by combining catalytic blended finance with technical assistance.
Preparatory grant : Access to affordable financing for SMEs
Countries:
Regional
Topics:
AgricultureForest sector
Status:
Closed
Amount:
$ 500,000 USD
Start Date:
20/02/2025
End Date:
01/01/2026
Implementing Organizations:
CFC
National Partners:
-
Objectives
The preparatory grant by the Common Fund for Commodities sought to:
- initiate desk research and stakeholder outreach
- analyse key agri-commodity value chains in the Congo Basin region;
- assess the feasibility of including a forestry component, and outline a promising approach;
- further develop the performance-based Outcomes Fund
- develop M&E and Results frameworks and align tools with CAFI requirements;
- compile a concrete pipeline of investment opportunities;
- deliver a comprehensive PRODOC for approval by the CAFI EB
dollars approved
outputs
institutions partnered with
Results to date
By end 2025:
- Six country-level assessments examined seven priority agricultural value chains. Detailed analyses explored maize, cocoa and palm oil in Cameroon, and cassava, cocoa and palm oil in the DRC, alongside a regional forestry assessment.
- An investment pipeline containing 11 business concept notes was developed, identifying opportunities for future finance in sustainable agricultural and forestry value chains.
- A performance-based financing facility was designed to complement business lending and technical assistance, linking incentives to environmental outcomes. The studies and investment pipeline informed a full programme proposal for financing deforestation-free businesses in the Congo Basin.
Result in charts
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Documents
| Document Name | Date | Download |
|---|---|---|
 Project document - affordable financing for SMEs - CFC |
15/12/2024 |
Download 
|