Public funding

A key challenge in growing our impactful business is the shortage of investable and bankable assets in our target markets. FMO can play an important role to step in at an earlier stage of the development process to help stimulate the creation of more bankable projects. For FMO to be a pioneer, especially in high-risk markets, we rely on public funding to cover the higher risks that are associated with such projects. 

Our public investment partners allow us to make investments with a higher risk profile and development impact. These include the Dutch Government, the UK Government, the European Commission (EC) and the Green Climate Fund (GCF). On behalf of the Dutch State, we make investments through the following programs: Building Prospects, the Access to Energy Fund (AEF), the Dutch Fund for Climate and Development (DFCD) and MASSIF. In addition, we set up the NASIRA and FMO Ventures program with guarantees from the EC and, in early 2021, the UK Government provided funding for the Mobilising Finance for Forests (MFF) program. A short summary of these are provided below. 

As an accredited entity, we also receive funds from the EC and the GCF that are ultimately managed by EDFI Management Company for ElectriFi and AgriFi, by Climate Fund Managers for Climate Investor One and Climate Investor Two, and by Eversource for the Green Growth Equity Facility (GGEF).

Access to Energy Fund (AEF)

In 2007, the Dutch Government and FMO set up AEF. AEF finances private sector projects and companies aimed at providing access to renewable energy in emerging markets and developing economies. For instance, AEF provided a €8 million loan to Walo Storage (Senegal) to help structure the overall debt package. Walo Storage is set to be the first solar plus battery storage project in West Africa. The battery will stabilize the frequency of the grid and reduce power outages.

Building Prospects

In 2002, the Dutch Government and FMO established Building Prospects as a fund to strengthen the agribusiness value chain by increasing access to energy, water, logistics and transport and improving climate resilience and gender equality. For instance, Building Prospects provided a US$9 million loan to Pearl Dairy Farms, one of the larger dairy processors in East Africa. 

Dutch Fund for Climate and Development (DFCD)

Established in 2019, DFCD is a Dutch Government fund that is managed through a consortium of FMO, SNV Netherlands Development Organization, Worldwide Fund for Nature (WWF) and Climate Fund Managers. DFCD connects the project development expertise of SNV and WWF with the mobilizing and investment power of FMO and Climate Fund Managers. Through the Land Use Facility, which is managed by FMO, DFCD provided a US$10 million loan to NMB bank in Nepal. This will enable NMB to finance green projects with a focus on climate resilient rural agriculture. SNV is closely involved and supports NMB on identifying and developing green opportunities in Nepal.

Mobilising Finance for Forests (MFF)

In 2021, FMO launched Mobilising Finance for Forests (MFF) in partnership with the UK Government. This £152 million program uses blended finance to mobilize private sector investments into the forests and sustainable land use (FSLU) sectors to combat deforestation and climate change. The program does this by funding companies and funds that add value to, protect, and restore tropical forests, and that are beneficial to society and biodiversity. This meets an unmet need in the market: whilst grant-based financing supports the early-stage development of such projects, there isn’t sufficient private capital for these projects to scale. This is because projects in the FSLU sector are considered too risky by commercial investors, especially in Africa, Asia, and Latin America. By providing repayable development contributions, debt and equity, MFF bridges the gap between the two sources of financing, helping to pioneer, scale and develop the sector. 

As a GCF-accredited entity, FMO also facilitated &Green’s application for US$189 million Green Climate Fund financing, which the GCF Board approved in 2023. The additional funding from GCF will support the expansion of &Green’s portfolio and will boost the fund’s capacity to mobilize private capital.

Pearl sources raw milk from smallholder farmers, cooperatives, and traders in both Uganda and Kenya and processes it into various products. Pearl will utilize the funds to expand the milk collection center network and powder processing capacity in Uganda, and expand facilities in Kenya. Pearl is an important regional employer and FMO’s investment can support local job creation.


MASSIF, another Dutch Government fund, was established in 2006. It finances local financial intermediaries and institutions that can contribute to the development of small businesses and micro-entrepreneurs, women, and youth entrepreneurs, as well as support innovation in inclusive business. In 2023, the Dutch Ministry of Foreign Affairs (MoFA) decided to top-up MASSIF with €69 million. In addition, MoFA decided to provide market creation funding to MASSIF in line with FMO’s strategy.

For instance, MASSIF invested US$10 million in Insitor II, a sector-agnostic private equity fund targeting investments in high-growth and scalable businesses in Cambodia, India, and Pakistan. The fund exclusively invests in companies that provide solutions to low-income consumers/households. This aligns with MASSIF’s objective to support early-stage companies and to support businesses that improve the livelihood and access to basic services for underserved groups. It also aligns with FMO’s strategic goal to contribute to reducing inequalities.

Along with British International Investment (BII), the UK's development finance institution, MASSIF’s Technical Assistance program is supporting Africa Resilience Investment Accelerator (ARIA). This brings together 16 DFIs to unlock investments in frontier and growth markets in Africa through pipeline and investment facilitation, grants, technical assistance, and ecosystem building. In 2023, the DFIs visited DRC, Sierra Leone and Benin to understand barriers to investing and building a pipeline of investments.

NASIRA with EC guarantee

NASIRA promotes inclusive growth, job creation and sustainable development and, through that, tackles some of the root causes of irregular migration in Sub-Saharan Africa and the European Neighborhood. The program is structured with guarantees from the EC and the Dutch Government through our MASSIF program. NASIRA helps to unlock lending to migrants, women and young entrepreneurs that financial institutions consider high-risk.

In 2023, we closed our first NASIRA deal in Georgia with Terabank that will enable it to lend to women and youth-owned MSME, as well as rural MSMEs central to the country’s important agri-food. 

FMO Ventures Program with EC guarantee

The FMO Ventures Program set up in 2020, combines a €40 million guarantee provided by the EC, with €60 million in financing from the Access to Energy, Building Prospects and MASSIF funds and €140 million in financing from FMO’s own balance sheet. The funds are invested in early-stage, technology-enabled businesses, technical assistance and the development of venture capital ecosystems in emerging markets. The EC’s guarantees will allow FMO to take an equity stake in risky but growing companies, so they can become bankable and scalable in two to three years. One of this year’s deals is a US$1.5 million investment in Okra Solar, which electrifies off-grid households via a mesh-grid solution in Nigeria and Haiti. This investment enables electrification of underserved communities with solar and battery power.

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