Amsterdam November 19, 2024 — Organic Development Finance (ODF) is pleased to announce its first EUR 10 million senior loan agreement with prominent Dutch investor Invest International. This vital funding will expand ODF’s capacity to provide fair-priced, much-needed working capital loans to small and medium-sized enterprises (SMEs) in emerging markets that focus on aggregating and exporting organic ingredients. These companies play a crucial role in scaling sustainable agriculture and linking smallholder farmers to global markets.
ODF was founded by Tradin Organic, global frontrunner in the sourcing, processing and distribution of organic ingredients. As a strong promotor of long-term partnerships with its suppliers, Tradin Organic executed on its vision of adding value in its supply chains by creating a truly market-driven financing instrument, addressing the finance gap faced by many organic companies in developing countries by opening up access to capital, supporting growth and innovation.
Tradin Organic CEO Floris Wesseling: “Through ODF we can connect organic suppliers to appropriate financing, empowering them to sustainably improve their operations. This contributes to the development of their communities; economically, socially and environmentally, and leads to a more resilient supply chain. We are delighted to welcome Invest International as a partner in ODF, joining us on our mission to foster a thriving organic value chain from farm to fork.”
Women at work in processing facility for organic cashew nuts in Brazil
Driving Sustainable Agriculture in Emerging Markets
Organic agriculture offers significant environmental benefits, including improved soil health, increased biodiversity, and the reduction of harmful chemicals, making it a critical component of sustainable development. Sourcing is often done from emerging markets, where many small and medium-sized enterprises struggle to secure affordable working capital. ODF’s tailored financing solutions allow these businesses to meet growing demand, pay fair prices to local farmers, and scale sustainably.
“With this EUR 10 million loan, we’re thrilled to expand our support for companies that are pioneering sustainable, organic agriculture in emerging markets. This commitment from a prominent partner like Invest International is a major milestone in the ODF growth path, showing trust in our investment strategy” said Susie Horth, ODF Chairperson of the Supervisory Board.
A Blended Finance Facility Catalysing Investment
As a blended finance facility, ODF is uniquely structured to leverage both concessional and private funding, creating a bridge for impactful, market-driven investment into high-growth sectors in emerging markets. With support of USAID and GIZ the fund was la
unched by Tradin Organic in 2020 and has already successfully built a portfolio of over 14 transactions with 8 different companies. By attracting additional funds with a diversified investor base, ODF aims to expand the number of buying partners with which it cooperates and meet the growing demand for sustainable agricultural supply chains worldwide.
Michiel Slootweg, Director of Private Sector, emphasized Invest International’s support for ODF’s commitment to financing small-scale organic farmers in emerging markets and connecting them with Dutch trading companies such as Tradin Organic. “This creates a win-win for all parties in the value chain, driving sustainable growth and strengthening trade links with the Netherlands.”
Managed by FOUNT; a Leading Dutch Impact Fund Manager
ODF is managed by FOUNT, a Dutch impact fund manager known for their dedication to fostering sustainable development in underserved sectors in emerging markets. FOUNT’s experience of working in emerging markets, impact investing, and working in partnerships ensures that ODF’s capital is allocated effectively to generate long-term social and environmental returns.
“With the capital provided by Invest International, ODF can scale up its investments in securing a sustainable future for our investees which will have positive, compounded effects along the organic supply chain. We’re extremely pleased with the partnership and excited to continue on our journey for positive impact.” said Bernadette Blom, Founding Partner of FOUNT. “By providing tailored capital solutions to these SMEs in the organic supply chain, we can make a measurable impact on local economies and global sustainability goals, while fostering environmentally friendly practices.”
Empowering Local Communities and Farmers
The importance of organic regenerative farming practices is recognised globally, driven by consumer awareness of health, environmental, and social benefits. However, organic-focused SMEs in emerging markets often face financial barriers that limit their ability to grow a
nd support local farmers. By providing efficiently affordable working capital, and working with multiple international traders, ODF enables these businesses to increase their reach and impact, empowering thousands of smallholder farmers who benefit from reliable market access and fair trade practices.
“At ODF, we believe that fair financing can be transformative for companies in emerging markets,” adds Gemma Verhoeven, ODF Fund Lead. “With this support from Invest International, we’re helping SMEs thrive, protecting the environment, and creating opportunities for smallholder farmers to build sustainable livelihoods.”
About Organic Development Finance (ODF)
ODF, Organic Development Finance, was initiated as a Dutch Foundation by Tradin Organic, supported by USAID West African Trade and Investment Hub and GIZ, Germany’s main development agency, to provide affordable finance to certified organic agricultural companies in low-income and emerging countries. The objective is to enhance local supply chains for organic crops in order to realize environmental and social benefits of organic production.
More information: www.organicdevelopmentfinance.org
About FOUNT
FOUNT is a leading impact investment firm providing Strategic Advisory and Fund and Investment Management services to drive social and environmental impact alongside reasonable financial return in emerging markets. FOUNT is the Fund Advisor of Organic Development Finance. FOUNT is active in various sectors across emerging economies including agriculture, sustainable fashion and clean cooking. Fund and Investment mandates of FOUNT further comprise Agri3 Fund (sustainable agriculture), Good Fashion Fund (sustainable fashion) and BIXCapital (clean cooking). For more information, please visit: www.fount.eu.
For more information, please contact:
Gemma Verhoeven
Fund Lead ODF
Organic Development Finance (ODF)
gemma@organicdevelopmentfinance.org
+31616058286
organicdevelopmentfinance.org
With this partnership Invest International contributes to ODF’s commitment to fostering sustainable economic growth, empowering smallholder farmers, and promoting environmental sustainability. This funding is a major milestone for ODF’s work in building a fair, resilient, and environmentally conscious future.
