Belgium’s Incofin Investment Management recently lent USD 1.5 million from the Fairtrade Access Fund (FAF) to Lafaza Trading, a company with offices in Madagascar and the US that buys vanilla and other spices “directly [from 1,000] smallholder farm owners who use organic and sustainable agricultural practices.” Lafaza works with farmers to help them obtain organic certification via “capacity building on proper cultivation and curing techniques to enhance the quality of the vanilla.” Lafaza was established in 2005.
Founded in 2012, FAF lends to “agricultural exporters who work primarily with smallholder farms” with the aim of promoting sustainable development. The fund supports 327,000 smallholder farmers in Africa, Latin America and the Caribbean. During 2020, it disbursed a total of USD 50 million and earned USD 500,000 in profits.
Founded in 2001, Incofin is a for-profit firm that seeks “to promote inclusive progress.” As of 2022, it has 350 investees in 65 countries, mostly active in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1.2 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo, Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk bank. The company has offices in Belgium, Colombia, Cambodia, India and Kenya.
By Adhya Singh, Research Associate
Sources and Additional Resources
Incofin press release
https://incofin.com/incofin-provides-funding-to-let-vanilla-farmers-enjoy-the-fruits-of-their-labor-as-much-as-consumers-do/
Lafaza homepage
https://lafaza.com/
FAF homepage
https://incofinfaf.com/
FAF 2020 annual report
https://incofinfaf.com/publication/annual-report-2020/
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