Together with the Dutch development finance institution FMO, OeEB has invested €30m in the Hivos-Triodos Fonds.

The investment, which adds to the existing €65m assets under management of Hivos-Triodos Fonds, is part of a 10-year funding agreement with FMO and OeEB and will be used to accelerate sustainable social and economic development in developing countries, mainly by investing in local SMEs. 

Sabine Gaber, CEO and Member of the Executive Board at OeEB: "By investing in SMEs in renewable energy, sustainable agriculture and food production, we drive green growth, expand financial inclusion, and create jobs – strengthening communities and economies in developing countries. We are pleased to work alongside our partners on this transaction, which reinforces our shared commitment to green finance and inclusive development."

Hivos-Triodos Fonds was launched in 1994 as a public-private partnership between the Dutch development organization Hivos and Triodos IM, advocating for and investing in sustainable change in emerging countries.

Since its inception, Hivos-Triodos Fonds has invested over €300m spread across 107 high-impact initiatives in 49 countries in Africa, Asia and Latin America and helped millions of predominantly rural women access financial services.

The new investment by FMO and OeEB will enable Hivos-Triodos Fonds to make even more impact in areas like agriculture and access to renewable energy.

Femke Bos, Head of Impact Private Debt & Equity at Triodos Investment Management, said: "This new investment by FMO and OeEB marks an important milestone as it is the first time that development finance institutions invest directly in Hivos-Triodos Fonds, allowing us to significantly grow in size while securing a ten-year commitment. The cooperation with FMO and OeEB exemplifies the transformative power of collaboration in the development finance sector. It clearly shows that by joining forces we can create meaningful impact for people in emerging economies."

Hans Boogaard, Director Agribusiness, Food & Forestry at FMO, said: "SMEs in developing countries are vital for food security and climate action yet face major financing gaps worsened by the global shortfall in public development funding. Hivos-Triodos Fonds stimulates the growth of innovative businesses in renewable energy and sustainable agriculture in those countries. With the long-term horizon of our commitment, financed through our government fund Dutch Fund for Climate and Development, we are giving the DFI-investment a revolving nature, allowing the same capital to support SMEs again and again."

As a blended finance instrument, Hivos-Triodos Fonds aims to address climate change and its consequences, improve livelihoods, and reduce inequality for low-income communities and vulnerable groups, especially women and youth. By stimulating the growth of innovative businesses in renewable energy and sustainable agriculture, Hivos-Triodos Fonds spurs the transition to a green and inclusive economy.

Michel Farkas, COO at Hivos: "With Hivos-Triodos Fonds we have demonstrated that development cooperation can be effective within an investment model, creating huge impact on communities and providing employment and economic independence especially for women and youth. This is particularly important in times when government subsidies are disappearing or are being cut. We are therefore very happy with the decision of FMO and OeEB to join Hivos-Triodos Fonds with such a significant investment."