Executive Summary

Over 80% of the global poor live in agricultural areas and are dependent on the quality of agricultural value chains for their income. The effects of climate change provide an increasingly challenging context for long term sustainable development.

Against the backdrop of this global outlook, IDF has shifted toward an increased focus on the agribusiness value chain and climate. Commitments in 2018 reflect this shift. IDF invested in the Althelia Sustainable Oceans Fund, which will finance business models to make production of seafood sustainable, promote best-practice aquaculture and support coastal protection, waste management, recycling and the resilience of coastal communities.

In 2018, IDF committed a total of EUR 51.4 mln to 9 projects and 2 development equity investments, falling short of its year target of EUR 60 million. The complexity of the project finance energy market in MENA and SSA is an important factor for not reaching the 2018 target. IDF continued to show that great development impact and revolvability can go hand in hand, with the revolvability increasing to 95.6%. The projects in the IDF portfolio at the end of 2018 support 857,770 indirect jobs (364,519 for women) and 34,116 direct jobs (14,098 for women) and have catalysed a total of EUR 2.97 bln.

IDF signed two commitments to forestry companies, adding significantly to the climate impact of the fund and further enhancing FMO’s forestry portfolio. The Fund also invested in project development through the Djibouti Wind project. IDF supports innovation, for instance by investing in Novastar Ventures Fund II and the EcoEnterprise Fund III.

At the end of 2018, IDF received a new mandate from DGIS including a top up of EUR 100 mln. A new strategy has been formulated as part of the mandate renewal, directing investments to agribusiness, infrastructure and climate change mitigation and adaptation. To reflect the broad theme of such a strategy, the fund has acquired a new name, Building Prospects, which will be used from 2019 onwards. The pipeline of Building Prospects will be further strengthened in order to attain a stable commitment level of EUR 60 mln per year.