FMO 2019
Annual Report
2019: a year of overall stable development impact and strong partnerships.
We did well on mobilizing additional capital as well as a substantial increase in the investments through the government funds. Almost €3 billion was invested in developing countries as a result of FMO’s activities; €1.7 billion on FMO’s own books, €297 million using public funds and we mobilized €868 million from third parties.
OUR VISION
We believe in a world in which, in 2050, more than 9 billion people live well and within the means of the planet’s resources.
OUR SDGs
OUR MISSION
We empower entrepreneurs to build a better world.
STRATEGIC GOAL
Your preferred partner to invest in local prosperity.
OUR STRATEGY
Higher
Impact PortfolioDeeper
RelationshipsHigher
Productivity
OUR MARKETS
Agribusiness, Food & Water
Energy
Financial Institutions
Dutch Business
OUR VALUES AND BEHAVIORS
Making the difference
We are courageous and entrepreneurial
We create value for all our stakeholders
We accelerate sustainable development
Diversity
We respect differences and listen
We embrace dilemmas
We include multiple perspectives
Quality
We communicate expectations and share feedback
We learn, professionalize and innovate together
We are accountable and support clear decisions
Integrity
We are responsible and compliant
We are transparent and build trust
We are true to our vision and mission
OUR THREE SDG’S:
Before we invest and during the investment period, we carefully research the financing opportunity and assess its impact.
Our ESG standards
Environmental, social and governance standards are an integral part of FMO’s investment process. These standards serve several purposes. First, they help reduce the risk to the environment, employees and workers, communities and other stakeholders. Second, they help our clients to contribute positively to the SDGs. Third, they reduce risks to our clients and thereby to FMO.
Dilemmas we face
Dilemmas we face
Financing some sectors increases the risk of supporting tax avoidance
Financing the agribusiness sector means also financing commodity traders, who by the nature of their business are multiple entities carrying out various supply chain roles across multiple jurisdictions around the world.
Read more about: Financing some sectors increases the risk of supporting tax avoidanceDilemmas we face
Can you fund projects linked to sectors with a bad reputation?
Our NL Business team has a wider sector mandate and can invest in sectors other than FMO's key sectors. The team financed a project involved in the transshipment of minerals from western Africa.
Read more about: Can you fund projects linked to sectors with a bad reputation?Dilemmas we face
Invest in non-renewables or help the energy transition? It is not always either/or.
Ivory Coast has an electricity production deficit and only 65% of its population currently has access to electricity, hampering economic growth. Meanwhile, the country is committed to a 42% renewable energy target by 2030.
Read more about: Invest in non-renewables or help the energy transition? It is not always either/or.Dilemmas we face
What if mobilizing private investment means undermining your own profits?
To achieve the Sustainable Development Goals, private investment in emerging markets will need to go from billions to trillions. Development Finance Institutions like us have a key role to play, as we aim to attract more institutional investors to our markets. This mobilizing role enables us to act as an accelerator boosting investments in developing countries.
Read more about: What if mobilizing private investment means undermining your own profits?Dilemmas we face
Distorting commercial debt markets vs. attracting private investment
The trillions needed to achieve the Sustainable Development Goals by 2030 cannot come from Multilateral Development Banks and Development Finance Institutions alone. Mobilizing private capital towards SDGs and frontier markets is essential. But private capital only invests where they feel the return adequately compensates for the risks.
Read more about: Distorting commercial debt markets vs. attracting private investmentDilemmas we face
How should you respond when shares switch into questionable hands?
In the aftermath of the failed Turkish coup d’état in 2016, a shareholder of one of our clients, allegedly a Gülen supporter, was imprisoned and forced to sell his shares to a businessman supported by the regime.
Read more about: How should you respond when shares switch into questionable hands?Where we invest
Total committed portfolio €10.4 billion
Note: committed portfolio consists of €9.1 billion for FMO and €1.3 billion for government funds
A partnership to promote sustainable banking
At the turn of the century, international commercial investors and development financial institutions considered breaking into the Nigerian financial sector.
India: a pivotal role in achieving the SDGs
Home to nearly 1.4 billion people and the world’s largest democracy, India has enormous potential as a marketplace for entrepreneurs. It is a country bursting with opportunities, optimism and innovation.
2X Challenge: Mobilizing the world’s great untapped resource
In May 2019, FMO joined the 2X Challenge. Launched by the Development Finance Institutions (DFIs) of the G7 in 2018, the 2X Challenge calls for DFIs across the world to work together to mobilize US$3 billion in commitments by 2020 to give women in developing markets access to economic participation.
All-inclusive support for smallholder Nicaraguan coffee producers
At a time when foreign investors are fleeing Nicaragua and local banks are reducing their exposure to coffee in particular, Mercapital continues to support this fragile sector.
Complex projects | Dealing with multiple dilemmas
In November 2019, the NGO Human Rights Watch (HRW) published a critical report concerning one of our investments in Feronia, a palm oil producer for the domestic market in the Democratic Republic of Congo (DRC).
Regenerating a region’s economy and ecology
Ledesma’s importance to the remote region of Jujuy in the north of Argentina can hardly be overstated.