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News > Investors

FMO's IDF gets new name and new funding

Africa Global Funds
April 23, 2019, 9:47 p.m.
329

Word count: 395

The Dutch Ministry of Foreign Affairs has renewed the mandate of FMO’s Infrastructure Development Fund (IDF) and topped the fund with €100m. 

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The Dutch Ministry of Foreign Affairs has renewed the mandate of FMO’s Infrastructure Development Fund (IDF) and topped the fund with €100m. 

A new strategy has been formulated as part of the mandate renewal, directing investments to agribusiness, infrastructure and climate change mitigation and adaptation. 

The fund will continue under a new name: Building Prospects.

The MOL Fund (Minst Ontwikkelde Landen, later called the Infrastructure Development Fund or IDF) was established in 2002.

The Fund was specifically designed to facilitate basic infrastructure services.

Linda Broekhuizen, CIO at FMO: “Building Prospects is designed to drive private sector development through the creation of reliable infrastructure in many sectors, including agribusiness, energy, transport, ports, water, and social infrastructure.” 

“It follows an inclusive approach to reduce – particularly gender - inequality by financing companies that serve people at the base of the pyramid. Each Building Prospects investment is additional, providing funding for initiatives that the market cannot fulfil due to elevated risk.”

Building Prospects first and foremost drives job creation through private sector development. 
In addition, Building Prospects aims to mitigate the effects of climate change. 

As climate change tends to strongly affect low-income countries, investees need to strengthen their ability to reduce GHG emissions and/or adapt to the consequences of climate change. 

The fund has an official climate marker, indicating that it contributes to the climate goals set by the Dutch Government.

Hans Docter, Director Sustainable Economic Development at the Ministry of Foreign Affairs, said: “The Sustainable Economic Development Department of the Ministry of Foreign Affairs views the development of good infrastructure as one of the most important enabling factors for generating sustainable, inclusive economic growth in developing countries.” 

“FMO has an excellent track record in investing in private infrastructure projects in the developing world, thereby contributing to sustainable economic growth, and, most importantly, jobs. We are proud to announce that Building Prospects will continue to do so and will expand its infrastructure investments in the years to come. In that way, the fund will contribute to eradicating the root causes of poverty in the developing world, which is one of the central priorities of Minister Kaag for Foreign Trade and Development Cooperation.”

“With Building Prospects, we can invest early on, take high risks and in doing so, realize projects with high development impact that would otherwise not have been bankable.

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