52175 - Fairtrade Access Fund

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Summary of Investment Information

Project Number

52175

Company Name

Fairtrade Access Fund S.A., SICAV-SIF

Date SPI Disclosed

Sep 8, 2026

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Oct 9, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Sep 9, 2026

Department

Regional Industry MAS LAC & EUR

Industry

Funds

Sector

Other Sector Fund

Project Description

The project consists of an IFC investment in Fairtrade Access Fund (“FAF”), an open-ended Luxembourg-domiciled impact fund that provides trade finance, working capital, and longer-term loans to Fairtrade and other sustainability-certified smallholder producer organizations (“SPOs”), agricultural enterprises, cooperatives, organizations and other hired labour organizations (“HLOs”) that are engaged in the value chain of agricultural products involving smallholders in their supply or production processes (altogether, “Agro Enterprises”) operating across Latin America and the Caribbean, Sub-Saharan Africa, and Asia, as well as to agri-focused microfinancing institutions (“MFIs”). The Fund’s objective is to address persistent financing constraints faced by underserved actors in agricultural value chains and to support more inclusive, resilient, and sustainable agricultural production systems.

FAF finances Agro Enterprises that aggregate, process, and market certified agricultural products, thereby facilitating access by smallholder farmers to higher-value domestic and export markets. Through its lending activities, the Fund supports improved market access, improved livelihoods, and increased resilience among smallholder farmers and rural enterprises. The proposed transaction is expected to support FAF’s transition to a more scalable and diversified capital structure and enable continued portfolio growth.

Sponsor / Cost / Location

Development Impact

The Project is expected to improve access to finance, technical assistance, and market opportunities for smallholder farmers by expanding FAF’s lending to farmer cooperatives, producer organizations, agricultural enterprises across 20+ countries in Africa, Asia, and Latin America. The Fund will provide trade finance, working capital, and longer-term investment loans to enterprises operating in certified or sustainability-oriented value chains, including cocoa in Cote d’Ivoire, macadamia in Kenya, and coffee in Nicaragua, where smallholders face persistent constraints such as limited access to affordable credit, weak market access, climate and disease risks, and difficulty meeting certification and export requirements. By financing these organizations and complementing financing with technical assistance, the Project is expected to strengthen farmer access to buyers, support compliance with sustainability standards, improve resilience and productivity, and expand participation in higher-value agricultural markets.

IFC’s additionality is expected to be both financial and non-financial. IFC will provide longer-term financing that is generally not available from commercial lenders for funds serving smallholder-linked agricultural borrowers, whose financing needs are often seasonal, trade-related, and higher risk. IFC’s investment is also expected to support a capital structure that can absorb risk more effectively and help FAF expand lending to underserved producer organizations and Agro Enterprises while mobilizing additional investors over time. In addition, IFC is expected to support FAF to increase its fund size through its role as an equity investor which includes reviews of its governance, risk management and investment policies.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Farmers Reached : financing/insurance	individuals		Not Available	Not Available	Not Available
Farmers Reached : technical assistance	individuals		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project entails an investment in FAF, an open-ended impact investment fund managed by Incofin. The Fund provides debt financing to Agro Enterprises engaged in the production, processing, purchase, export, and trade of agricultural commodities across Latin America, Sub-Saharan Africa, and Asia Pacific, as well as to agri- MFIs. Targeted sub-projects are in majority certified (or in the certification process) against internationally recognized sustainability standards for the agricultural sector such as Fairtrade International and Rainforest Alliance among others. Typical E&S risks associated with the supported portfolio include labor and working conditions (including child labor and forced labor risks in agricultural supply chains), occupational health and safety (OHS), agrochemical use and habitat conversion. The Project has therefore been categorized as FI-2 in accordance with IFC's Sustainability Policy. The applicable E&S requirements for this Project include IFC's Micro Finance Exclusion List and applicable E&S national laws in the host countries.

Incofin IM maintains an ESMS governed by its ESG Policy for Agri-Food Investments. The ESMS covers the full investment cycle across five stages: screening, due diligence, investment committee review, legal documentation, and monitoring. It is complemented by the Fund's Investment Policy, which establishes mandatory E&S eligibility criteria and exclusion parameters applicable to all investments.
All prospective investees are screened against the Fund's Master Exclusion List and receive a site visit for E&S appraisal. An ESG Questionnaire is used to identify material E&S issues and determine whether any IFC Performance Standards are triggered. A four-tier E&S risk categorization framework assigns each prospective investee to one of four categories (A, B+, B, and C). Category A sub-projects are excluded. Category B+ sub-projects require enhanced due diligence, with mandatory review by the Risk, ESG, and Impact team. All investments are assessed with Incofin IM's proprietary ESG rating platform covering seven ESG dimensions and must achieve a minimum score of 55 percent to be eligible for investment. Key considerations such as zero-tolerance policies on child labor, age verification procedures, written employment contracts, and accessible grievance mechanisms, are formalized through covenants in loan agreements.
Incofin IM applies additional E&S screening and due diligence tools depending on the type of investee. For agri-SMEs, the Fund uses the Responsible Agriculture Investing tool (RAI), a dynamic Excel-based tool aligned with FAO, IFC, and Fairtrade requirements that evaluate operational practices depending on the investee’s specific sector and activity. For MFIs, the Fund uses ALINUS, a standardized E&S performance assessment tool with 68 indicators developed by a consortium of Microfinance Institutions to mitigate risks associated with the microfinance sector.
ESMS implementation is supported by a dedicated Risk, ESG, and Impact team comprising a Chief Risk and ESG Officer and five additional specialists. The investment team serves as the first line of control for E&S screening and due diligence execution. The Risk, ESG, and Impact team function as a second line of oversight, with mandatory review of higher risk investments and a veto right for all deals. Investment managers receive annual E&S training, including webinars and in-person sessions at regional offices. FAF has an available grievance mechanism open to all internal and external stakeholders.
As part of the Project, the client will be required to: (i) apply the IFC Microfinance Exclusion List and (ii) strengthen staff training on the identification and prevention of common labor violations in the agricultural sector.

Contacts

For Inquiries About the Project, Contact

Noémie Renier

Fairtrade Access Fund S.A., SICAV-SIF

2 rue d Alsace

Luxembourg L-1122

noemie.renier@incofin.com

Luxembourg

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