Common Fund for Commodities and ACT Fund receive €500,000 grant from BMUKN to accelerate agroecological transition in developing countries

The Common Fund for Commodities (CFC), in partnership with the Agricultural Commodity Transformation (ACT) Fund, has announced the approval of a significant grant by the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) of Germany. 

The ministry has approved a €500,000 grant to strengthen the ACT Fund’s Technical Assistance (TA) Facility, which will be managed by CFC’s experienced in-house TA Facility team. 

This funding will accelerate the transition to inclusive organic, regenerative, agroecological, and climate-resilient agricultural systems across countries eligible for Official Development Assistance, with a special focus on Sub-Saharan Africa.

Eva M. Johansson, Senior Technical Assistance Facility Manager at the CFC, said, “The Federal Environment Ministry’s support enables the ACT TA Facility to deliver targeted, high-impact support to the agri-SMEs and farmers who form the backbone of agricultural value chains in Sub-Saharan Africa. This partnership strengthens our shared commitment to climate resilience, biodiversity conservation and restoration, and inclusive rural development.”

Supporting nature-based solutions and climate resilience

The grant will support a comprehensive three-year programme running from December 2025 to December 2028. It targets agricultural small and medium-sized enterprises (agri-SMEs) and their networks of smallholder farmers. 

Through tailored technical assistance and advisory services, the programme aims to enhance climate change mitigation and adaptation, restore ecosystems, and improve the resilience and income of smallholder-based commodity value chains. 

This initiative ensures that nature-based solutions are implemented effectively, contributing to the conservation and restoration of nature.

Technical assistance is a core component of the ACT Fund

The ACT Fund, established by the CFC, blends public and private capital to provide trade finance, working capital, and long-term debt financing to SMEs operating in agricultural commodity value chains across Africa, Asia, and Latin America. 

It addresses a substantial unmet demand for financing, enabling these businesses to connect millions of smallholder farmers to attractive markets. The Fund promotes local economic value creation and supports formal jobs in rural areas while preserving nature through inclusive organic, regenerative, agroecological, and climate-resilient practices.

The ACT Fund’s TA Facility works closely with the Fund’s investment activities by co-designing and implementing tailored technical support and advisory services in collaboration with investee companies. This collaboration accelerates the developmental impact of these businesses in their daily operations.

Scaling impact amid growing momentum

The grant arrives at a crucial moment for the ACT Fund, which reached its first close of $40 million in September 2025. 

The Fund is set to make its first investments in high-impact agri-SMEs in Africa, Asia, and Latin America. Over 10 years, the ACT Fund aims to support 275,000 smallholder farmers, improve climate-resilient production on over 250,000 hectares, and invest in 70 agricultural SMEs.

The TA Facility complements these investments by supporting the transition of smallholder farmers toward inclusive organic, regenerative, agroecological, and climate-resilient agricultural systems. It also helps de-risk investments by addressing operational constraints faced by SMEs.

Partnership and strategic vision

Transforming agricultural systems requires capital as well as strong partnerships. The Federal Environment Ministry is a proud inaugural partner of the ACT TA Facility. Building on CFC’s proven TA model, the partnership offers a platform to strategically use resources, strengthen resilient local value chains, and place smallholder farmers at the centre of regenerative transitions across agricultural value chains. This supports essential nature conservation and restoration efforts.

Agricultural SMEs in developing countries are struggling with major climate challenges like declining soil fertility, unpredictable weather, and rapid biodiversity loss. 

The Federal Environment Ministry and the CFC are teaming up to invest in practical solutions that enhance environmental and economic resilience.

Advancing inclusive and climate-resilient agriculture

This partnership enables the ACT Fund to show how financial support and technical assistance can speed up the transition to inclusive, organic, regenerative, agroecological, and climate-resilient agricultural systems.

The initiative supports stronger rural economies and healthier ecosystems across Sub-Saharan Africa and beyond.

The ACT Fund and its TA Facility operate under the CFC, an autonomous intergovernmental financial institution established under the auspices of the United Nations Committee on Trade and Development.