Letter from the MB of the Fund Manager

Stepping up

At the heart of FMOs strategy lies the commitment to enabling entrepreneurs to increase inclusive and sustainable prosperity. When we look at global developments, 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 play a pivotal role in driving local economic growth, reducing inequality, and driving meaningful climate action. 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, strong 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, FMO has continued to make a tangible impact in 2024. 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 and support 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 these partnerships enhance our impact is marked by investments in 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. This investment was sourced through our DFCD partnership with 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.

The DFCD has made significant strides in advancing climate resilience and sustainable development. Notably, DFCD secured additional financing from FMO which is backed by EFSD + guarantee under the European Fund for Sustainable Development Plus (EFSD+), enhancing its capacity to mobilize investments for climate adaptation and mitigation. One exemplary project supported by DFCD is the support provided to the Helios Climate, Energy, Adaptation and Resilience Fund (CLEAR) in Africa. This private equity fund, raised by Helios Investment Partners, focuses on securing a low-carbon growth trajectory for the continent. The fund adopts a 'climate first' lens and targets dual climate benefits—both mitigation and adaptation—through investments in mid-cap businesses across five key themes: green energy solutions, climate-smart agribusiness, green transport and logistics, resource efficiency, and climate enablers

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. We remain committed to our 2030 ambitions and will increase our efforts to stay on track. We will in particular focus on investments with a Reduced Inequalities label, especially in LDCs and on Green investments. Crucial next steps include the Market Creation initiative, onboarding of new EFSD+ programmes and our increased cooperation with the Dutch and UK governments. 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 partners, and we extend our heartfelt gratitude to them for their trust and collaboration over the past year. We remain dedicated to deliver on the impact and trust that our partners place on us. At FMO, we believe that doing makes the difference, and that amidst the global turmoil, stepping up is a must.

The Hague, 25 April 2025

On behalf of the Management Board

Franca Vossen, Chief Risk Officer
Huib-Jan de Ruijter, Co-Chief Investment Officer
Michael Jongeneel, Chief Executive Officer
Peter Maila, Co-Chief Investment Officer