SDG 2: A business case about zero hunger

Summary

Peter 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

00:00

🌱 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.

05:01

🍎 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.'

Keywords

💡FMO

FMO, or the Dutch Development Bank, is a public-private partnership primarily owned by the Dutch state with a minority stake held by banks, unions, and the private sector. It plays a crucial role in the video's theme by financing sustainable development projects, particularly in agribusiness and food sectors. The script mentions FMO's mission to support sustainable jobs and income generation in countries that need it the most, illustrating its commitment to social and environmental impact through financial support.

💡Sustainable Development

Sustainable development is a key concept in the video, referring to a mode of progress that meets the needs of the present without compromising the ability of future generations to meet their own needs. The script emphasizes how FMO uses finance as a tool to drive this development, particularly through investments that consider the perspective of local stakeholders and have a positive social and environmental impact.

💡SDG 10

SDG 10, or 'Reducing Inequality,' is one of the United Nations' Sustainable Development Goals mentioned in the script. It is a strategic goal for FMO, highlighting the bank's commitment to addressing economic disparities and ensuring that their investments contribute to a more equitable society.

💡Agriculture

Agriculture is identified as a key sector for FMO in the script, directly involved in tackling hunger and a critical component of their strategy to reduce inequality. The script discusses how FMO finances companies throughout the agricultural value chain, from primary production to processing and distribution, to support smallholder farmers and increase agricultural productivity.

💡Smallholder Farmers

Smallholder farmers are a significant focus in the video, representing over 2 billion people constituting a large portion of the world's poor. The script provides examples of how FMO supports these farmers through innovative financing and service models, such as the investment in Bourbon Gona, which increases yields and provides training in sustainable farming practices.

💡Agribusiness

Agribusiness is a term used in the script to describe the combination of agriculture with business practices. FMO prioritizes agribusiness as a means to address global hunger and poverty, financing companies that operate within the agricultural value chain and supporting them with knowledge and skills to ensure long-term viability.

💡Innovation

Innovation is a recurring theme in the video, with the script highlighting projects that use innovative approaches to increase agricultural productivity and efficiency. For example, the investment in Milan in Vinci showcases digital solutions that leverage data analytics and machine learning to provide actionable insights for smallholder farmers and other stakeholders in the agribusiness sector.

💡Scalability

Scalability refers to the ability of a project or business model to expand and grow, which is an important aspect of the investments FMO makes. The script mentions the Bourbon Gona model as a scalable agriculture enterprise that has proven to be financially sustainable and capable of significantly increasing smallholder yields.

💡Poverty

Poverty is a central issue addressed in the video, with FMO's investments aimed at alleviating it through sustainable economic development. The script discusses the connection between poverty and hunger, emphasizing the importance of supporting smallholder farmers who live on under $2 a day.

💡Malnutrition

Malnutrition is mentioned in the context of a project that FMO invested in, African Improved Foods, which manufactures high-nutrition foods to combat malnutrition during critical periods of life. The script describes how the project sources locally grown crops and helps eliminate contamination by aflatoxin, thereby improving food safety and nutrition.

💡Action

The concept of taking action is a key message in the video, encapsulated in FMO's tagline 'Doing makes the difference.' The script concludes with a call to action for students and future business leaders to consider the broader impacts of their decisions on the planet and its inhabitants, emphasizing the importance of proactive measures in addressing global challenges like hunger and poverty.

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