Highlights
In 2024, Building Prospects navigated a complex investment landscape while executing its mandate from the Dutch Ministry of Foreign Affairs to promote private sector development and job creation in emerging markets. The fund closed eleven new transactions totaling €65 million, reaching an overall committed portfolio of €508 million, with over half of the commitments in Africa.
The global investment landscape for developing countries in 2024 was marked by challenges and opportunities. According to UNCTAD1, foreign direct investment (FDI) to developing countries fell by 2%, marking the second consecutive year of decline. Natural disasters such as earthquakes, floods, and hurricanes disrupted global supply chains, while the ongoing war in Ukraine impacted global food supply. The destruction of infrastructure, including farms, processing facilities, and export routes, led to significant losses and increased food insecurity worldwide. These disruptions underscore the importance of resilient and diversified agricultural value chains, which Building Prospects aims to support through its investments.
One prime example is the investment in Valency International, an integrated supply chain manager, commodity trader, and processor with operations in Africa and Asia. Building Prospects $10 million debt investment supports Valency's expansion in Nigeria, including new warehouses, increased cashew processing capacity, and development of food processing and packaging plants. This project promotes economic growth, export diversification, quality employment, gender equality, and reduced emissions through shorter value chains, while indirectly supporting smallholder farmers in Nigeria's poorest regions.
Another notable investment is in Bacao S.A.S., a Colombian subsidiary of Andean Cacao GmbH. Supported by a $10 million debt investment, this project aims to develop 3,720 hectares of cacao using sustainable and regenerative agricultural practices. It aligns with FMO's ambitions to support leading commodity off-takers, promote regenerative and carbon-neutral cacao production, and provide technical assistance to smallholders. This investment supports private sector growth and stability in Colombia, contributing to climate resilience and sustainable agricultural practices.
Following on to the existing Ventures Program (“FVP 1.0”) for which Building Prospects has provided part of the funding, Ventures 2.0 (FVP2), the new FMO Ventures Program, has gone live in October 2024 denoting another $200 million program to be invested over 5 years in early-stage startup or scale-up companies with a tech component in the sectors of FinTech, AgriTech and CleanTech. MASSIF has agreed to a €20 million contribution overall to FVP2, expected to be deployed. Access to Energy Fund and Building Prospects also contribute to FVP2 funding.
As of the end of 2024, Building Prospects' portfolio reached 3.6 million beneficiaries, supporting 212 thousand jobs directly and 2.2 million jobs indirectly across 33 countries. Several investees have strong links to the Netherlands, providing sustainable cocoa products to companies with significant processing capacity in the Netherlands or engaging consulting services from Dutch companies.
Building Prospects continues to navigate a complex and evolving investment landscape to drive sustainable development in emerging markets. Through targeted investments in infrastructure, agribusiness, and climate resilience, the fund is striving to make a meaningful impact on people's lives and contribute to the achievement of the Sustainable Development Goals.