Microcapital Brief: Cofides Launches $145M Huruma Fund To Deliver Microfinance To 45K Farmers On Iv Continents

Compañia Española de Financiación del Desarrollo (COFIDES), a evolution finance establishment controlled by the Castilian regime, recently launched the Huruma Fund, an investment vehicle amongst commitments of EUR 120 meg (USD 145 meg) to assist rural farmers inward Asia, sub-Saharan Africa, together with Latin America too the Caribbean via a give of intermediaries. Seventy pct of Huruma’instant portfolio will alive deployed via microfinance institutions too banks, together with the remainder is intended to accomplish farmers via agricultural organizations, such every bit cooperatives together with pocket-sized together with medium-sized value-chain actors.

“The Huruma Fund is an instance of how public-private partnerships can help bridge marketplace gaps inward add-on to attain the base of the pyramid inward ways which otherwise would non be viable, improving the lives of people alongside innovative solutions,” said COFIDES Chairman José Luis Curbelo. Mr Curbelo added that the project “will enable 45,000 farmers to overcome poverty too will contribute to achieving the [United Nations’moment] Sustainable Development Goals. Under the electrical current dubiety caused past the pandemic, affect investing is going to be l-l more important to ensure no i is left behind during the crisis.”

The commitments to Huruma include EUR 20 1000000 (USD 24 meg) from Agencia Española de Cooperación Internacional para el Desarrollo (AECID), Spain’sec international development cooperation means; EUR 1 ane M chiliad (USD 1.ii meg) from COFIDES; together with get-go-loss funding of EUR 10 meg (USD 12 1000000) from the European Union. Spain’instant CaixaBank raised an additional EUR 89 ane one thousand 1000 (USD 107 ane M chiliad) for the fund from multiple individual investors. Gawa Capital, likewise of Espana, is managing Huruma. In back up of its directly investments, the fund has an additional EUR 10 one thou yard (USD 12 one chiliad thousand) available for technical assistance on how to attain the target populations.

COFIDES is controlled by iii entities of the Spanish authorities. Its other shareholders are iii Spanish banks inward add-on to the Development Bank of Latin America, which is based inward Venezuela too besides known by its Spanish acronym CAF. COFIDES manages funding from the EU, the United Nations Green Climate Fund too the following entities owned past times the Spanish regime: Fondo para Inversiones en el Exterior (FIEX), Fondo para Operaciones de Inversión en el Exterior de la Pequeña y Mediana Empresa (FONPYME) inwards improver to El Fondo para la Promoción del Desarrollo (FONPRODE). As of the close of its 2019 financial twelvemonth, COFIDES managed assets totaling EUR 1.1 billion (USD 1.3 billion).

Gawa Capital Partners is an investment advisory club specializing inwards microfinance. It was founded inward 2009 past Agustin Victoria inwards improver to Luca Torre. Most of the business business firm’minute investments range inwards size from EUR 1 meg (USD 1.ii 1000000) to EUR 3.five meg (USD 4.iv 1000000). As of 2020, the iv funds it advises, Gawa Microfinance Fund, Global Financial Inclusion Fund, Huruma Fund in addition to Magallanes Impacto Fondo de Inversión Libre concur aggregate assets valued at EUR 196 ane thou K (USD 237 meg).

By Kate Finster, Research Associate

Sources in addition to Additional Resources

Direct contact with COFIDES

COFIDES profile on the Huruma Fund

https://www.cofides.es/en/our-function/success-stories/fondo-huruma

CaixaBank homepage

https://www.caixabank.es/

AECID homepage

https://www.aecid.es/EN/aecid/

Gawa Capital homepage

https://www.gawacapital.com/

COFIDES 2019 study

https://www.cofides.es/sites/default/files/biblioteca/2020-07/activity-sustainability-study-cofides-2019-english.pdf

COFIDES profile on FONPRODE

https://www.cofides.es/en/financing/financial-instruments/fonprode

COFIDES profile on FIEX

https://www.cofides.es/en/financing/financial-instruments/fund-strange-investment-fiex

COFIDES profile on FONPYME

https://www.cofides.es/en/financing/financial-instruments/fund-sme-strange-investment-operations-fonpyme

Previous MicroCapital article on Gawa Capital

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