Eco.business Fund

Document Summary: 

Organizational profile: The eco.business Fund was established in 2014 by KfW Development Bank on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany together with Conservation International and Finance in Motion.
The fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources and to mitigate climate change and adapt to its impacts, in Latin America, the Caribbean, and sub-Saharan Africa. The eco.business Fund targets investments in agriculture, fishing, forestry, and sustainable tourism. The eco.business Fund leverages the power of blended finance to amplify its impact and outreach via two separate sub-funds in i) Latin America, and the Caribbean, and ii) sub-Saharan Africa. In other words, the fund draws its capital from various layers: An initial base of public investors and donors provides a risk cushion to unleash the financial clout of private institutional investors. The fund then invests this money either via intermediaries committed to promoting green finance or directly in businesses that pursue sustainable production and consumption. In addition, fund beneficiaries – whether intermediaries or directly funded businesses – can access technical assistance provided by the respective eco.business Development Facility. In all cases, the fund provides debt financing.

Financing Instrument: Loans and Technical Assistance

Project scale: Minimum ticket size USD 2 million for eco.business Fund Latin America and the Caribbean and USD 1 million for eco.business Fund sub-Saharan Africa.

Recipient countries regions/country groups: Counties and territories in Latin America, the Caribbean, sub-Saharan Africa on the DAC list eligible to receive official development assistance (ODA).

Eligibility Criteria: The eco.business Fund provides financing through three avenues: local financial institutions, businesses that implement sustainable practices and are aligned with the fund’s mission, and real-sector intermediaries.
End borrowers receiving eco.business Fund financing must:
- either hold an eligible sustainability standard or
- Implement either one of the practices outlined in the “Green List”
- Support a practice fully aligned with the fund’s mission.

Application guidelines: In its role as Advisor to the eco.business Fund, Finance in Motion provides investment management services to the eco.business Fund’s Board of Directors and Investment Committees. The task of these bodies is to direct the fund’s investment decisions, objectives and policies. Finance in Motion furthermore supplies risk management, technical assistance, impact management, transaction management, reporting, and other fund services to the eco.business Fund. Approval of investment proposals submitted by the Advisor is delegated to the respective sub-fund Investment Committee, whose members are appointed by the Board.

Publication Date
Wednesday, 10 March 2021
Applicable location
Americas
Africa
Oceania
Topic/Theme
Forest conservation and management
Biodiversity conservation
Agroforestry
Private sector and industry
Eco-tourism
Database
Financing opportunities