€95m Boosts Sustainable Development in Emerging Nations
A significant boost for sustainable development in emerging countries has been announced with a €95m investment in the Hivos-Triodos Fund (HTF). The 10-year funding agreement, facilitated through the Dutch Fund for Climate and Development, aims to accelerate social and economic progress in developing countries.
The investment, totalling €30m, comes from FMO and the Austrian Development Bank (Oesterreichische Entwicklungsbank, OeEB). FMO contributed €20m, with OeEB adding €10m. This brings the total assets under management in HTF to approximately €95m.
The funds will primarily support small and medium enterprises (SMEs) in developing countries, focusing on off-grid renewable energy and sustainable agriculture. Wouter Soetaert, business development manager for blended finance at Triodos Investment Management, welcomed the investment. He highlighted the critical funding gap in SME financing, particularly for local banks, in these sectors.
Soetaert acknowledged the operational challenges faced by development finance institutions (DFIs) when investing directly into smaller agriculture or off-grid renewable energy projects. The HTF partnership, which also includes catalytic capital providers aligned with impact and sustainability objectives, aims to address these challenges and accelerate development.
The €95m investment in HTF is set to drive sustainable social and economic development in developing countries. By focusing on SMEs in renewable energy and sustainable agriculture, the fund seeks to bridge the financing gap and overcome operational challenges faced by DFIs. This collaborative effort involving FMO, OeEB, and other unnamed institutions is a significant step towards achieving sustainable development goals.
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