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Amsterdam-Basis Organic development financing (ODF) has secured a senior loan of €10 million from the Dutch Invest internationally to support SMEs in emerging markets. These companies that focus on organic products, agriculture, collect and export organic ingredients, thus connecting small farmers to the global market.
The aim of the financing is to expand ODF’s capacity to provide working capital loans on fair terms and thus promote sustainable agriculture.
This is Invest International’s first blended debt initiative with the aim of attracting further impact investments in this sector.
Susie Horth, Chair of ODF’s Board of Directors, said: “With this €10 million loan, we are pleased to expand our support for companies pioneering sustainable, organic farming in emerging markets. This commitment from a prominent partner like Invest International is an important milestone in ODF’s growth path and shows confidence in our investment strategy.”
Promoting sustainable agriculture in emerging markets
Organic Development Finance (ODF) addresses the financing challenges faced by certified organic farming companies in low-income countries and emerging markets.
Founded by a Dutch company Bio-Tradin and managed by an impact investment firm THOSEThe fund strengthens the import of organic raw materials into the Netherlands and Europe.
With support from USAID’s West African Trade and Investment Hub and the German development agency GIZ, ODF provides low-cost financing for organic companies, enabling growth and innovation.
The focus of the initiative is to improve local supply chains for organic crops while promoting environmental sustainability and achieving social benefits through organic farming methods.
Floris Wesseling, CEO of Tradin Organic, says: “Through ODF we can provide organic suppliers with suitable financing and enable them to sustainably improve their operations. This contributes to the economic, social and environmental development of their communities and leads to a more resilient supply chain.”
“We are pleased to welcome Invest International as a partner at ODF. The company supports us in our mission to promote a thriving organic value chain from farm to fork.”
With a portfolio of over 14 transactions across eight companies, ODF aims to expand its network of purchasing partners and meet the growing demand for sustainable agricultural supply chains.
A recent $1 million investment in Sierra Leone’s organic cocoa industry highlights ODF’s impact, benefiting nearly 1 smallholder farmers through training on sustainable farming practices, Fairtrade certification and market access.
The initiative supports ethical production, reforestation and the common good while strengthening Sierra Leone’s economy.
Capital utilization
Bernadette Blom, founding partner of FOUNT, says: “With the capital provided by Invest International, ODF can increase its investments to secure a sustainable future for our investees, which will have positive, amplified impacts along the organic supply chain.”
“We are extremely pleased with the partnership and look forward to continuing our journey to make a positive impact.”
Blom adds: “By offering tailored capital solutions to these SMEs in the organic supply chain, we can make a measurable impact on the local economy and global sustainability goals while promoting environmentally friendly practices.”
ODF is managed by FOUNT, a Dutch impact fund manager with expertise in sustainable development and impact investing in emerging markets. FOUNT’s experience with partnerships ensures that ODF’s capital is used effectively to achieve long-term social and environmental returns.
Gemma Verhoeven, Head of the ODF Fund, added: “At ODF, we believe that fair financing can be transformative for companies in emerging markets. With the support of Invest International, we help small and medium-sized businesses succeed, protect the environment and create opportunities for small farmers to build a sustainable existence.”
How does the €10 million senior loan from ODF aim to enhance the viability of SMEs in emerging markets focusing on organic products?
Welcome to the Amsterdam-based Organic Development Financing (ODF) website interview! Today, we have two guests with us, Susie Horth, Chair of ODF’s Board of Directors, and Floris Wesseling, CEO of Tradin Organic, to discuss the €10 million senior loan secured by ODF from the Dutch Invest internationally to support SMEs in emerging markets focused on organic products, sustainable agriculture, and connecting small farmers to the global market. We’ll touch on the significance of this initiative, the importance of sustainable agriculture in emerging markets, and the impact of ODF’s work on the environment and communities. Let’s get started!
Susie, could you please explain the importance of this financing initiative for the organic industry in emerging markets and how it supports sustainable agriculture practices?
Susie Horth: This financing initiative is crucial for the organic industry in emerging markets as it provides much-needed working capital loans on fair terms to companies that focus on sustainable agriculture. The funds will help these companies expand and innovate, leading to economic development and social benefits in the communities they serve. Moreover, by promoting organic farming methods, we can improve soil health, reduce water pollution, and mitigate climate change impacts, ensuring a sustainable future for all.
Floris, as CEO of Tradin Organic, how does your involvement with ODF contribute to the growth and development of sustainable agricultural supply chains globally?
Floris Wesseling: As the initiator of ODF, Tradin Organic is committed to promoting sustainable agriculture worldwide. By providing suitable financing to organic suppliers through ODF, we can enable them to improve their operations sustainably, train farmers on best practices, and certify them under ethical standards like Fairtrade. This not only benefits the producers directly but also strengthens the entire supply chain by ensuring a consistent and reliable source of raw materials. Furthermore, it demonstrates our commitment to responsible sourcing and enhances our reputation as a sustainable player in the market.
Susie, could you tell us more about the scalability and impact potential of this investment
