SDG 2: A business case about zero hunger
Summary
TLDRPeter Lobo, the Global Head of Agribusiness, Food, and Water at FMO, explains how the Dutch Development Bank uses public-private partnerships to finance sustainable development in countries with the most impact. FMO's focus includes reducing inequality and addressing hunger through agribusiness investments, supporting smallholder farmers, and innovative agricultural technology. Examples include Bourbon Ghana's farmer service model, Milan in Vinci's digital solutions for East Africa, and the African Improved Foods project in Rwanda. FMO's approach emphasizes the importance of considering social and environmental impacts in business decisions.
Takeaways
- 🏦 FMO is a public-private partnership with the Dutch state owning 51% and the private sector owning 49%.
- 🌐 FMO's mission is to support sustainable jobs and income generation in countries that need it the most.
- 💼 Financing is a tool for FMO to drive sustainable development, not just an end in itself.
- 🔍 FMO screens clients to ensure they understand and address the concerns of local stakeholders.
- 🌾 Agriculture is a key sector for FMO, as it directly tackles hunger and supports smallholder farmers.
- 🌱 FMO finances companies throughout the agribusiness value chain, from production to distribution.
- 💡 Knowledge and skills support are provided alongside financing to ensure the sustainability of investments.
- 📈 An example project in Nigeria increased smallholder yields significantly through an innovative farmer service model.
- 📱 Agricultural technology is supported to make agribusiness more effective, using data analytics and machine learning.
- 🌿 FMO engages local communities in smarter ways, such as improving food safety and nutrition.
- 💼 Career advice from FMO: Consider the impact of business decisions on the planet and its inhabitants.
Q & A
What is FMO and what does it stand for?
-FMO stands for the Dutch Development Bank. It is a public-private partnership, with 51% owned by the Dutch state and 49% by banks, unions, and the private sector.
What is FMO's role in supporting sustainable development?
-FMO supports sustainable jobs and income generation in countries where it can make the biggest difference. It uses financing as a tool to drive sustainable development, focusing on the social and environmental impact of the companies it finances.
How does FMO ensure that its financed companies consider local stakeholders' perspectives?
-FMO screens clients to check if they understand the perspective of local stakeholders and address their concerns. This is crucial because the financed companies often have millions of customers, and their good business practices can have a massive positive impact.
What is one of FMO's strategic goals related to reducing inequality?
-One of FMO's strategic goals is reducing inequality (SDG 10). This goal is closely linked to addressing hunger, as the two issues are interrelated.
Why is agriculture a key sector for FMO?
-Agriculture is a key sector for FMO because it is directly involved in tackling hunger and is essential for the livelihood of over 2 billion people who are part of smallholder farming households.
How does FMO finance companies throughout the agribusiness value chain?
-FMO finances companies involved in primary production, processing, trade, and distribution within the agribusiness value chain. It also supports these companies with knowledge and skills, as financing alone is not sufficient.
Can you provide an example of a project FMO supported that increased agricultural productivity in Nigeria?
-FMO invested 4 million U.S. dollars in Bourbon Gona, an innovative farmer service model that increased smallholders' yields up to two times and up to 3.5 times the national average.
What is the significance of the agribusiness technology supported by FMO in East Africa?
-FMO supported an agribusiness technology startup called mi, which develops innovative digital solutions that are valuable at every stage from farm to fork, using techniques like data analytics, machine learning, and other sources to provide advice and support to smallholder farmers.
How does the African Improved Foods project that FMO invested in address malnutrition?
-African Improved Foods manufactures high-nutrition foods to address malnutrition during pregnancy, breastfeeding, and a child's first two years. It sources locally grown crops and has set up collection points to eliminate aflatoxin contamination.
What career advice does FMO have for students who may become future business leaders?
-FMO advises students to ensure that every business decision they make takes into account what's right for the planet and everyone living on it, emphasizing the impact their decisions can have on broader societal and environmental issues.
What is the FMO tagline and what does it signify?
-The FMO tagline is 'doing makes the difference,' signifying that action, rather than hope alone, is what brings about change and addresses global challenges like extreme poverty and hunger.
Outlines
🌱 Driving Sustainable Development in Agribusiness
Peter Lobo, the Global Head of Agribusiness, Food, and Water at FMO, the Dutch Development Bank, explains the bank's role in promoting sustainable jobs and income generation. FMO, a public-private partnership, uses financing as a tool to drive sustainable development, focusing on screening clients for good business practices that positively impact social and environmental aspects. With a strategic goal to reduce inequality (SDG 10), FMO emphasizes the importance of agriculture in addressing hunger and supports smallholder farming households, which make up a significant portion of the world's poor. The bank invests in companies across the value chain and provides knowledge and skills, exemplified by three projects: an innovative farmer service model in Nigeria that increases yields, a digital solution for agribusiness in East Africa, and a project addressing malnutrition in Rwanda by sourcing locally grown crops.
🍎 Addressing Malnutrition and Encouraging Sustainable Practices
The second paragraph delves into specific projects supported by FMO that address malnutrition and promote sustainable practices. One such project is the African Improved Foods initiative, a joint venture that manufactures high-nutrition foods to combat malnutrition during critical periods of life. The initiative sources locally grown crops, addressing the issue of aflatoxin contamination and employing over 300 staff while working with 9,000 farmers to produce meals for 1.5 million people daily. The paragraph concludes with career advice from FMO to students, emphasizing the impact of business decisions on global issues like poverty and climate change, and encourages action in line with FMO's tagline, 'Doing makes the difference.'
Mindmap
Keywords
💡FMO
💡Sustainable Development
💡SDG 10
💡Agriculture
💡Smallholder Farmers
💡Agribusiness
💡Innovation
💡Scalability
💡Poverty
💡Malnutrition
💡Action
Highlights
FMO is a public-private partnership with 51% Dutch state ownership and 49% private sector participation.
FMO's mission is to support sustainable jobs and income generation in countries with the potential for significant impact.
Financing is a tool FMO uses to drive sustainable development, not just the primary service.
Client screening is crucial to ensure they understand and address the concerns of local stakeholders.
Good business practices of clients with millions of customers can have a massive positive social and environmental impact.
FMO's strategic goal includes reducing inequality (SDG 10) and addressing hunger, which are interconnected.
Agriculture is a key sector for FMO, directly involved in tackling hunger and supporting over 2 billion people.
FMO finances companies throughout the agribusiness value chain, from production to distribution.
Knowledge and skills support are provided alongside financing to ensure sustainable development.
FMO invested in Bourbon Gona, an innovative farmer service model in Nigeria, increasing smallholder yields significantly.
Bourbon Gona is a scalable and financially sustainable model co-owned by its farmers.
FMO and the Massif government fund supported Milan in Vinci with a convertible grant for digital agribusiness solutions.
Milan in Vinci applies data analytics and machine learning to improve crop productivity and trace product origins.
By 2022, Milan in Vinci aims to digitalize over 1 million hectares across sub-Saharan Africa.
FMO invested in African Improved Foods, addressing malnutrition with high-nutrition foods sourced locally.
African Improved Foods set up royal collection points to eliminate aflatoxin contamination in crops.
Career advice from FMO emphasizes considering the impact of business decisions on the planet and its inhabitants.
FMO's tagline 'doing makes the difference' highlights the importance of action in addressing global challenges like hunger.
Transcripts
hi I'm Peter Lobo heart global head
agribusiness food and water at FMO the
Dutch Development Bank FMO is a
public-private partnership
it's 51% owned by the Dutch state and
49% by banks unions and the private
sector and we support sustainable jobs
and income generation in countries where
we feel will make the biggest difference
so how do we do that well as a bank
obviously we finance companies but I'd
argued that financing isn't the most
important thing that we do at FMO it's
simply the tool we use to drive
sustainable development so for example
we screen clients to check if they
really understand the perspective of
local stakeholders and address their
concerns because those clients have
millions of customers their good
business practices then have a massive
positive social and environmental impact
so the right investments help us build
sustainable local economies that will
give people a living today but also
tomorrow
one of FMO strategic goals is reducing
inequality SDG 10 but we can't achieve
that without making progress on scg to
addressing hunger the two go
hand-in-hand the sector most directly
involved in tackling hunger is of course
agriculture a key sector for FMO over
the coming decades the global population
will exceed 9 billion with fewer
resources available to feed them and
there are some 500 million smallholder
farming households on the planet and
that's over 2 billion people
they constitute a significant portion of
the world's poor who live on under $2 a
day this is one reason why FMO makes
agribusiness a priority we finance
companies throughout the value chain
primary production processing trade and
distribution we also support the
with knowledge and skills because
financing alone is not enough you might
wonder how we do that well there are
three specific examples of projects FMO
suppose that illustrates how we do this
the first addresses how low agricultural
productivity in Nigeria which faces
exponential population growth and
rampant youth unemployment FMO invested
4 million u.s. dollars in bourbon gonna
an innovative farmer service model that
has proven to increase smallholders
yield up to two times and up to 3.5
times the national average
it is a financially sustainable and
scalable agriculture enterprise co-owned
by its farmers and targets youth he to
assesses its services including training
in sustainable farming soil analysis
crop insurance access to storage
facilities Bob Angola recovers its
investment every year and has killed up
21,000 small holder farmers as a
scalable model my my gonna is a great
effort for the viability of smallholder
farming that's winning over young
unemployed Nigerians and large
international investors the second
example supports the development of
agricultural technology that will make
Tomos agribusiness more effective FMO
and the massif government fund that we
managed gave a five hundred thousand
euros convertible grant and management
supports to Milan in Vinci a starter
focus on East Africa who develop
innovative digital solutions that are
valued to every stage from farm to fork
mi applies techniques like data
analytics machine learning to sources
such as der data weather and business
intelligence the results enable mi to
give small holder farmers crop and
productivity advice to support the plot
size and location to help input
suppliers to identify clients and tailor
products to unique
to help traders map suppliers and trace
product origin and quality and to give
financial service providers insights
into farmers historical performance to
improve for example credit scoring or to
develop innovative weather insurance
products by 2022 and my hopes to have
digitalized over 1 million floods across
sub-saharan Africa the final example is
engaging local communities in smarter
ways of eradicating Manu tration in 2017
if a more invested in African improved
foods this is a joint venture with
Rwandan government royal DSM CDC and IFC
AI F manufactures high nutrition foods
to address malnutrition during pregnancy
breastfeeding and the child's first two
years AI F sources locally grown maize
probe and a ski crop which in recent
years has been increasingly contaminated
by the poisonous mold aflatoxin and
therefore rejected by buyers to address
this AI F set up royal collection points
that helped and then eliminated cases of
aflatoxin in just three seasons on
yearand
AF was employing over 300 staff working
with over 9,000 farmers and producing
meals of 1.5 million people every day
these are just a few examples of how FMO
uses long term investments to kick-start
and support game-changing answers to the
challenges of extreme poverty and hunger
finally we were asked what career advice
FMO could give you as students well many
of you are or will be one day become
part of the business world's elite the
decision-makers your work may not focus
as directly as ours on issues like
poverty and climate change but whichever
sector or regions you make your career
your decisions will impact more people
more fundamentally than you may think
so our advice ensure every time that you
make a business decision
you also take into account
what's right for our planet and everyone
living on it everybody hopes that one
day global hunger will be eliminated but
what is hope without action like the FMO
tagline says doing makes the difference
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