Letter from the Management Board

Stepping up

In front of you is FMO’s annual report 2024, demonstrating our commitment to enabling entrepreneurs to increase inclusive and sustainable prosperity. It shows FMO achieved strong financial and impact results amidst a global landscape dominated by geopolitical tensions, high financing costs, and the increasing urgency to address climate change and inequality.

Before reflecting further on the year, we must acknowledge several concerning trends: rising geopolitical turmoil and weakening institutional foundations threaten global stability and solidarity, disproportionately affecting the most vulnerable people. Additionally, we are witnessing the public withdrawal of several major financial players from their climate and environmental, social and governance (ESG) commitments. In this context, FMO calls on the financial sector to remain resolute in advancing sustainable investment strategies. Financial institutions are pivotal in enabling local economic growth, reducing inequality and driving meaningful climate action, key factors in global stability. Investing in access to (green) energy, food and finance creates long-term value, something FMO has demonstrated consistently over 50 years of impactful and profitable investments.

Amidst these challenges, FMO recognizes the urgent need to step up even more. However, meaningful change cannot be achieved alone, partnerships are essential. By working together, we can drive sustainable investments, create economic opportunities in our markets, support Dutch businesses, and build a more resilient, inclusive future.

The strengths of partnerships

By providing crucial financial support and mobilizing additional funding for underserved regions—in 2024 we managed to directly mobilize more than 60 cents from investors for each Euro we invested from our own balance sheet—FMO has continued to make a tangible impact. The strength of our partnerships—evident in the success of initiatives such as the SDG Loan Fund and European Commission guarantees—enable us to expand programs like NASIRA and the FMO Ventures Program. These programs contribute to local livelihood options for the one billion young people who will try to enter the job market over the next decade—a majority living in emerging markets. We are also grateful for the increased funding for the Dutch Fund for Climate and Development (DFCD) from the Dutch government and the European Commission, and for Mobilising Finance for Forests (MFF) from both the Dutch and UK governments.

How partnerships enhance our impact is shown by customers like Camimex, a Vietnamese exporter of organic shrimp. With the Netherlands as one of the larger importers of Vietnamese shrimp, this investment increases climate adaptation and resilience for Vietnamese shrimp farmers and enhances carbon sequestration through expanded mangrove coverage. An investment sourced through our Dutch DFCD partner SNV. Another noteworthy example is our NASIRA guarantee to First City Monument Bank in Nigeria, the country that is the Netherlands’ most significant African trade partner. The guarantee enabled increased lending to agricultural, youth and women-owned SMEs, groups traditionally seen as too risky by banks.

Market creation

To help close the financing gap to achieving the SDGs, and while recognizing the limited business opportunities available to us and other impact investors, we have further expanded our market creation efforts in 2024 to develop bankable business opportunities and foster ecosystems that drive sustainable local economic growth. These efforts also strengthen our contributions to the Global Gateway goals and support Dutch trade opportunities. Here, too, partnerships remain central to our endeavors, with initiatives such as Aria, Impact Invest Nepal, CASA Plus and the EU’s €25 million fund for investments in Young Businesses in Africa all playing pivotal roles. 

Dutch companies can also directly spark new business opportunities in emerging markets, contributing to the SDGs often through innovative ways of working. We further support them through Invest International—as a 49 percent shareholder.

Financial and impact results

Our financial results for 2024 show a net profit of €297 million (2023: €65 million). Due to improving credit quality we were able to release several provisions which have enhanced our profit. In addition, the appreciation of currencies (mainly USD) against the Euro positively influenced our financial performance, resulting in an upward adjustment of our Private Equity portfolio. Our net profit is a volatile number because of the close link to currency changes. To guide our day-to-day finances, we therefore focus more on our regular return—primarily based on interest income, fees rendered, and dividend payments. In 2024 our regular return ended just above the level of 2023. However, the increase in our regular return was lower than the increase in our expenses, resulting in a cost-to-regular-income ratio of 63 percent (2023: 61 percent). To keep our expenses in line with our regular return in years to come, we will be even more cost-conscious and continue to focus on enhancing our efficiency. In addition, to raise our regular return we will grow our portfolio. We maintained a robust Common Equity Tier 1 (CET-1) ratio of 20.4 percent (2023: 22.0 percent). Keeping both ratios at a healthy level is essential to maximizing our impact.

In 2024, we supported our customers with approximately €3.8 billion in total new investments (2023: €2.7 billion), a record number of which we are proud. €2.2 billion in new investments was made through FMO’s own balance sheet, €285 million through public funds and €1.4 billion through direct mobilized funds (2023: €1.9 billion, €258 million, and €528 million respectively). At €15.5 billion (2023: €13.2 billion), our total committed portfolio grew significantly, driven by the appreciation of the US Dollar against the Euro and an increase in investments, particularly mobilized investments, an important component in maximizing our impact. Our total committed portfolio resulted in an estimated 890 thousand jobs supported and 2,130 ktCO₂e financed avoided greenhouse gas (GHG) emissions.

FMO invests in three sectors: (1) Agribusiness, Food & Water, (2) Energy, and (3) Financial Institutions. This allows us to combine climate action with socio-economic goals, focusing our impact on SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequality) and SDG 13 (Climate Action).

Some of the highlights per sector were:

• Agribusiness, Food & Water—Demonstrating our mobilization power, we arranged a US$394 million syndicated Sustainability-Linked Loan (SLL) for ETC Group, an international trader that, as well as, having a Dutch office, also largely exports their cocoa beans to the Netherlands. An SLL is a powerful tool for companies to demonstrate their commitment to sustainability while accessing favorable financing terms. One of ETG’s key targets is to reach one million African smallholder farmers, enhancing their production and crop quality. This is much needed given the shortage of cocoa beans and souring prices. 

• Energy—Participating in Copperbelt Energy Corporation's green bond issuance is the start of our expansion of green energy investments in Zambia, a Least Developed Country (LDC). Zambia is grappling with extensive load-shedding caused by droughts impacting its hydropower plants, yet demonstrating impressive signs of economic recovery following its default. The green energy will largely be used to mine copper, highly important in renewable energy systems because of its high conductivity and Zambia’s main export product.  

• Financial Institutions—As part of our growing support for financial institutions, we prioritize green loans and initiatives that benefit underserved groups, leveraging the local knowledge and networks of these institutions. A good example is FIDO Solutions, a digital lender operating in Ghana and Uganda with more than 650 thousand small companies and individuals as customers, who, in almost all instances, never previously had access to finance due to a lack of a formal financial track record.

To steer our portfolio, we label investments that directly contribute to Reduced Inequalities (SDG 10) and Climate Action (SDG 13). With respect to Reduced Inequalities (RI), our overall RI-labelled total committed portfolio amounted to €6.1 billion, achieving €2.3 billion in RI-labelled total new investments in 2024 (2023: €1.1 billion), a strong increase despite challenging global circumstances. Contributing to climate action, our Green-labelled total committed portfolio amounted to €5.9 billion, this included Green-labelled total new investments of €1.5 billion (2023: €1.1 billion).

Addressing regulatory challenges

This annual report marks the first time we present our sustainability information under the EU Corporate Sustainability Reporting Directive (CSRD). The regulation, however, may change in the near future following the recent Omnibus packages that were submitted to the European Parliament on 26 February 2025, aimed at reducing the complexity of EU requirements for all businesses. We will closely monitor these developments and determine what the implications are for FMO in the future. 

Other regulations are also under development and FMO has internal workstreams and projects to comply with these. While we welcome the progress of regulatory frameworks, we remain cautious about the unintended consequences of stringent EU Sustainable Finance regulations, which could hinder the ability to support sustainable growth in emerging markets.

In August 2023 we reported that, as a result of late notifications of unusual transactions to the Dutch Financial Intelligence Unit (FIU-NL) in 2021 and 2022, Dutch Central Bank (DNB) decided on enforcement measures. FMO is appealing these administrative measures.

Changes in Management Board and Supervisory Board

In February 2025, FMO announced that Fatoumata Bouaré, FMO’s Chief Finance & Operations Officer, will continue her career at the European Bank for Reconstruction and Development (EBRD) as of 1 May 2025. Fatou has been with FMO for over seven years. As a pivotal and steadfast member of FMO’s management board for many years, she exemplified the strengths that diversity brings to teams. FMO is very thankful for her expertise, her thoughtful leadership, and above all, her congenial approach and wishes her every success in her new and exciting role at the EBRD. Fatou's second and final term at FMO was set to conclude in October 2025. The search for her successor has already been set in motion.

On 24 April 2024, during the Annual General Meeting of Shareholders (AGM), Eme Essien Lore was appointed as the sixth member of FMO’s Supervisory Board. As Dirk Jan van den Berg, who has served as Chair of the Supervisory Board since May 2020, will step down after completing his second and final term, FMO has commenced the search for his successor. We extend our heartfelt gratitude to Dirk Jan for his commitment and strategic guidance during his tenure with FMO. As chair during the past five years, Dirk Jan guided the organization through turbulent times, including the COVID-19 pandemic. Under his supervision, the management board was expanded, a revised strategy was launched, FMO’s impact increased substantially, the organization’s capabilities were significantly enhanced, and a company-wide program on values and behaviors was initiated. The organization grew from less than 650 full-time employees (FTE) in 2020 to over 850 FTE in 2025. Always with a clear focus on our mission and performance, he leaves FMO financially healthy and resilient. 

Looking ahead

In a volatile global landscape, FMO faces three key long-term challenges: a scarcity of investment-ready companies, limited availability of concessional funding, and increasing regulatory requirements. However, as these challenging times also call for steadfast action, we remain firmly committed to FMO’s 2030 ambitions: €10 billion in Green investments and €10 billion in RI investments.

We will increase our efforts to stay on track to achieve these goals, with a particular focus on RI-labelled investments, especially in LDCs. Crucial next steps include the Market Creation initiative, one of the ten meaningful innovations outlined in our 2030 Strategy. Additionally, we will increase our investments in financial institutions in emerging markets, which have the local network and knowledge to play a key role in reducing inequalities within countries and supporting real climate action on the ground. To underpin these ambitions we must foster an organizational culture where we continuously improve how we collaborate efficiently and effectively in order to maximize our impact as One FMO.

As we reflect on the past year and prepare for the challenges ahead, we recognize that our achievements would not have been possible without our customers, our partners and our team. We therefore extend our heartfelt gratitude to our customers and partners for their trust and collaboration over the past year, and to FMO’s staff for their dedication to our mission. At FMO, we believe that doing makes the difference, and that amidst the global turmoil, stepping up is a must.

Fatoumata Bouaré, Chief Finance & Operations Officer
Franca Vossen, Chief Risk Officer
Huib-Jan de Ruijter, Co-Chief Investment Officer
Michael Jongeneel, Chief Executive Officer
Peter Maila, Co-Chief Investment Officer