OECD highlights the Huruma Fund as a case of good practice
Madrid, 11 March 2022.- The OECD has published the document summarizing the Huruma Fund’s ‘best practices’ as an example of public-private collaboration, impact investment and support for vulnerable farmers in Latin America, Asia and Africa.
This document provides detailed information on the Huruma Fund, as well as its main challenges, objectives and lessons learnt since it was launched by COFIDES in 2018, with the crucial support of the Spanish Agency for International Development Cooperation (AECID) through the Fund for the Promotion of Development (FONPRODE) and the European Union through its combined financing instruments.
This is the first time that a Spanish project has been included in the documentary series In Practice, which specializes in analyzing initiatives that enhance the effectiveness of alliances, actors and systems to fight climate change or achieve the inclusion of the least favored people.
For the OECD, the development of the Huruma Fund is showing that:
- Public resources are key to attracting private investment.
- Matching financial co-operation with technical co-operation allows for longer-term impact through microfinance entities or financial co-operatives.
- Identifying the correct partner and aligning the interest of all parties involved have been crucial.
- Developing suitable products for smallholder farmers requires a thorough understanding of market gaps.
ABOUT HURUMA FUND
The Huruma Fund is the first project led by COFIDES within the framework of agriculture blending facilities in the European Union. With the advice of GAWA Capital, it has 120 million euros contributed by the European Union, FONPRODE (the Development Promotion Fund) of the Spanish Agency for International Development Cooperation (AECID), COFIDES and private investors, thanks to the collaboration of CaixaBank Private Banking, which has distributed the fund through its national network. The objective is to provide access to loans to farmers in underserved rural areas in Latin America, the Caribbean, Sub-Saharan Africa and Asia. It includes a Technical Assistance Facility (TAF) to provide consulting services and training related to agriculture, and to help improve the entities the Fund invests in, enhancing the impact on excluded rural populations.
ABOUT GAWA CAPITAL
Established in 2010, GAWA Capital is the leading firm in impact investing in Spain, having mobilised over 195 million euros in public and private investments. Its objective is to improve the lives of low-income communities by promoting investing in social enterprises, while providing their investors with a financial return. GAWA was a pioneer in the introduction of impact investing in Spain, launching three funds which invest in emerging countries with an inclusive approach to market solutions for social issues.
COFIDES, a State-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.