Agriculture

Growing development impact

Expanding the agricultural investment universe

The responsAbility managed investment fund focusing on agriculture now offers enhanced access to the agricultural sector in developing countries. This allows responsAbility to better capture existing investment opportunities and grow its development impact among the rural population.

Expanding the agricultural investment

When responsAbility launched its dedicated agriculture fund in December 2011, the investment objective was to focus on a specific part of the agricultural value chain.

It aimed to finance the harvest and sales cycles of agricultural products by investing in organizations that were certified by a recognized Fair Trade labelling organization or improved the economic position of smallholder farmers in developing countries.

Significant growth and diversification

Over the next four years, the fund grew to USD 158 million, substantially increased its specialized staff, and significantly improved the level of diversification.

At the same time, responsibility’s intense presence and investment activity in the agricultural sector enabled it to explore a broader part of the agricultural value chain.

Expanding the investment scope

responsAbility therefore initiated the expansion of the investment scope to better capture existing investment opportunities and grow its development impact among the rural population.

What changed?

  • Expansion of the investment universe from mainly producers and trade organizations to additional actors, such as providers of fertilizer and seeds, irrigation, packaging and storage solutions, farm equipment and processors
  • Increase of investments in non-certified organizations with strong compliance and high social and environmental standards
  • Increase of the share of longer term financing in line with the demand in the agricultural sector

What does the expansion mean for investors?

  • Improved investment opportunity in the developing world’s agricultural sector
  • More diversification: geographical and across additional actors in the agricultural value chain
  • Greater development efficiency through the fund’s wider reach, contributing to the sustainable development of rural populations in developing countries
Looking to invest in the agricultural sector?

Past Performance is not a guarantee or indicator of current or future performance.