Category: News

Our flagship Incofin Climate-Smart Microfinance Fund (ICMF) has made its first investment: USD 2 million in Bank Arvand, Tajikistan.  

ICMF sets its focus on the social aspects of climate change. The fund invests in those who must address the impacts of climate change, even though they may not be the ones responsible.  

With Tajikistan, we see a relatively green country with hydropower electricity systems, yet the risks posed by climate change are real and imminent. 

Understanding Tajikistan’s Climate Challenges

Tajikistan’s environmental landscape presents a unique set of challenges. Rising temperatures, increased aridity, and the threat of flooding pose significant risks to both livelihoods and ecosystems. It is important that proactive measures are taken to mitigate these risks and foster adaptation efforts.  

Bank Arvand: Leading the Charge in Green Finance 

Bank Arvand stands at the forefront of green finance in Tajikistan. Founded with a mission to provide financial inclusion to marginalized communities, the bank has embraced sustainability as a core principle. When the CEO, Shoira Sadykova, visited our offices last week, we learned about how ICMF funds are being put into action, in the context of Bank Arvand’s journey.

Impact of the Incofin Investment 

The recent investment of USD 2 million from ICMF has catalyzed Bank Arvand’s efforts to scale up its green finance initiatives. By providing critical funding resources, the fund has helped Bank Arvand to expand its reach and support a broader range of climate-smart projects.  

Behind every loan is a story of transformation. Bank Arvand’s clients, from small-scale farmers to budding entrepreneurs, are leading the charge in combating climate change at the grassroots level. Through collaborative efforts and community-driven projects, these individuals are finding innovative solutions to environmental challenges, often securing group loans. 

There are stories of shared irrigation systems and eco-friendly production methods. There are businesses related to recycling, organic farming practices and water conservation projects. The impact of this investment is already being felt, promoting resilience and adaptation in the face of climate change. 

Looking Ahead: Scaling Up Sustainable Finance

As investors, we have a crucial role to play in supporting climate-smart activities. The Incofin Climate Smart Microfinance Fund (ICMF) supports initiatives that promote climate resilience and adaptation, empowering communities to thrive in the face of environmental challenges.  This could involve:

Financial and Non-Financial Services  

  • General Financial Services: Tailored financial solutions for families impacted by climate change.  
  • Climate Data Collection, Monitoring, and Distribution Systems: Building community resilience through early warning systems and strategic relocation initiatives.  
  • Migration Financing/Remittances: Support for individuals relocating to new, climate-resilient locations.  
  • Emergency Loans and Post-Disaster Financing: Swift financial assistance for recovery after adverse events, complemented by a dedicated program for post-disaster funding.  

Agriculture  

  • Climate-Resilient Agriculture Loans: Support for farmers with climate-resilient seeds, fertilizers, pesticides, smart irrigation systems, emergency shelter for livestock, soil rehabilitation, and training to enhance productivity while implementing sustainable agriculture practices.  
  • Crop or Index Insurance: Providing coverage for risks such as rainfall, drought, livestock, and yield fluctuations.  

Water & Sanitation  

  • Water Purification Loans: Funding for water purifiers, solar water pumps, rainwater harvesting, and wastewater relocation.  
  • Financing Water Businesses: Supporting companies engaged in portable distribution/kiosk setups, desalination, and other water-related ventures.  

Habitat & Livelihood  

  • Weatherproofing Home Loans: Financial support for weatherproofing homes against climate-related challenges.  
  • Roof Financing with Rainwater Collection: Assistance for the installation of roofs with built-in rainwater collection systems.  

Resilient Energy Systems & Transport  

  • Clean Energy Equipment Loans: Support for purchasing renewable energy equipment, including solar panels, clean cooking stoves, and micro-biomass power generators. Enhancing grid resilience.  
  • Leasing and Loans for Sustainable Transport: Facilitating income generation through electric vehicles, e-charging infrastructure, and batteries. 

By directing our investments towards these initiatives, we can contribute to building a more resilient and sustainable future for all. At Incofin, when we think about excellently managed female-led institutions, we start thinking about Bank Arvand. So, we are thrilled to see Bank Arvand as the recipient of the first investment from the Incofin Climate Smart Microfinance Fund (ICMF), and we look forward to many more impactful investments to come.  

17/05/2024

Incofin India Progress Fund has invested EUR 5.6 m (INR 500m) in Qul Fruit Wall Farm Installations Private Limited (Qul), a Kashmir based horticultural startup. Qul becomes the first agtech in the region to receive global institutional capital, marking a significant milestone for the startup ecosystem of the state.

Qul, founded in 2019, is a tech-enabled integrated platform covering the entire apple value chain from orchard installation, development and maintenance to controlled atmospheric storage facilities to digital supply chain integration with the national markets, thereby empowering 5,000 farmers in the Kashmir Valley.

Incofin aligns with Qul’s ambitious vision to quadruple apple yields in the next 5 years and expand operations to benefit 30,000 farmers. This partnership not only injects much-needed capital but also strategic support for Qul’s impactful mission.

The investment will not only crowd-in more private capital to Jammu & Kashmir but also support delivery of the potential of the horticulture sector, which supports the livelihood of half the population of the state.

Commenting on the investment, Rahul Rai, Partner at Incofin India shared “By leading this investment round, Incofin furthers its mission to back innovative agritech startups that make farming viable and sustainable. We are excited by Qul’s ambition to take Indian apples to the world stage.”

For more information, please see Incofin_Qul Press Release.

05/02/2024

Incofin Foundation, a private foundation established in 2021 by Incofin Investment Management with the purpose of scaling social and environmental impact that complements the return of its investments, has recently launched a project funded by the Inter-American Development Bank’s innovation branch (IDB Lab), and supported by the GSMA, a global organization unifying the mobile ecosystem to discover, develop, and deliver innovation foundational to positive business environments and societal change.

The project “Innovation in Agtech and Digital Agriculture for Small Farmers” aims to improve smallholder farmers’ profitability, access to finance and markets, and climate resilience by catalyzing the capacity, investment readiness, and uptake of agtech solutions in six countries of Latin America: Bolivia, Colombia, El Salvador, Honduras, Paraguay and Peru. The project will launch an Innovation Call to identify 14 agtech solutions championed by agtech services providers or start-ups, financial services providers, agricultural cooperatives, and agribusinesses. GSMA’s experience in running innovation calls in the agtech field will constitute a valuable support for Incofin Foundation to select promising agtech solutions capable of providing high-quality services to smallholder farmers. The selected agtechs or projects will receive technical assistance grants and potential financing for piloting, rolling out, or scaling up services helping to amplify the potential of 30,000 smallholder farmers in increasing their profitability, climate-resilience, and gender equality.

This project with the Inter-American Development Bank, GSMA and their impact investor networks represents a strategic opportunity to engage with digital agriculture stakeholders in Latin America and promote technology as a tool to increase impact for smallholder farmers. Through this initiative, Incofin Foundation will seek to incorporate new pathways to address the challenges that the agrifood sector faces today for a better and more sustainable future.

16/11/2023

We are thrilled to announce that Incofin has been honoured with the prestigious title of Belgian Asset Management Company of the Year for the third consecutive year in 2023, as awarded by Global Banking & Finance Review. This remarkable achievement signifies our unwavering commitment to the impact investing space.

Incofin’s third consecutive win underscores the increasing recognition within the global financial community of the profound impact we’ve made in the impact investing space. With over two decades of dedication to the development of the impact investing sector, Incofin has built a proven track record in the financial inclusion and agri-food domains worldwide. In 2023, we proudly introduced the Water Access Acceleration Fund, marking our entry into the drinking water sector.

We extend our thanks to Global Banking & Finance Review, partners, clients, and the Incofin family for their support. This three-peat victory is a testament to our ongoing commitment to driving meaningful change in impact investing. Stay tuned as we continue our journey toward a more inclusive and sustainable future.

 

27/10/2023

Today (Oct 16th, 2023), being the ‘World Food Day’ and the theme of this year is “Water is life, Water is food. Leave no one behind”, Incofin’s Water Access Acceleration Fund (W2AF) announces its first investment of in Rite Water Solutions (India) Pvt. Ltd. for EUR 7.5 m. 

With this, W2AF marches into the next step of success and impacting the world by providing access to safe and affordable drinking water to millions through its investment. The fund’s overarching goal is to bring safe drinking water to 30 million people in water-scarce areas by 2030.

W2AF is an impact-first blended fund that invests in safe drinking water enterprises, primarily in Africa and Asia. W2AF’s investors include Danone, BNP Paribas, U.S. International Development Finance Corporation (DFC), the Danish development finance institution IFU, Norfund, Aqua for All, and the U.S. Agency for International Development.

Incofin is a leading global impact investment firm headquartered in Belgium with EUR 1.4 billion Assets under Management. Incofin has a vintage of 22 years globally and primarily focuses on sectors being agri-food, financial services, water. It has made investment across 65 countries and has 100+ global team members based out of 7 global offices.

Rite Water is India’s rural affordable drinking water and tech backed company providing comprehensive, cost effective and sustainable solutions for safe drinking water to habitations across India where water sources are chemically & biologically contaminated. With this investment in Rite Water, Incofin’s W2AF is steadfast in common ambition to provide 50 million litres of drinking water everyday by 2028 through this investment.

16/10/2023

IMPACT ON CLIMATE

We like to share examples on how financial inclusion can advance climate-smart solutions and drive inclusive progress. A series of impactful projects of all shapes and sizes in emerging countries that address climate change, and help people adapt to and be more resilient to climate hazards. We at Incofin hope these stories of entrepreneurs, of financial institutions, of cooperatives, of impact organisations around the world can inspire how impact investors can contribute to a sustainable transition to a climate resilient economy.

Climate change is now. We must ensure that the most susceptible to the impacts of climate change – who are often already among the most vulnerable – are not left behind. Climate change is as much an environmental challenge as it is one of livelihood and social justice. Low-income communities (not the least women in those communities) are on the frontline of the dire effects of climate change. With the proper financial and technical solutions they are able to adapt, build resilience and mitigate climate change. Financial inclusion is well positioned to play a key role in empowering low-income vulnerable populations to adapt to climate change.

It brings us this time to Banco Pichincha in Ecuador, and especially to Maria. Enjoy her story.

 

Watch here the example of Mufin Green in India:

 

28/09/2023