Kuali Fund
Technical Assistance
Kuali Fund aims to transform Latin American and Caribbean countries into low-carbon and resilient economies by fostering systemic adoption of climate best practices by small financial institutions, including small banks, Microfinance Institutions, cooperatives, other non-bank financial institutions and FinTech companies. Kuali will support them in their transition to become greener and more inclusive so that they eventually provide green products to Small and Medium Enterprises and to smallholder farmers.
The European Union and the Green Climate Fund contributions are key to mobilize private investors’ participation by reducing their exposure to the perceived risk of the SME and smallholder farmer’s sector. Kuali will make use of debt-like investments, equity, mezzanine investments and growth-capital equity investments.
The impact of the Fund’s investments will be maximized with the support of a Technical Assistance Facility, helping to support the investees in the implementation of a green strategy, the integration of green risks and opportunities in their systems and the launch and expansion of green products and services.
Kuali Fund, implemented by COFIDES, is aligned with the Global Gateway priorities, in particular with its objective to promote investments in both GHGs emission mitigation and climate resilience. The Fund aims to drive transformational change channelling capital to underserved target segments, supporting their green transition.
Kuali Fund expects to directly support over 486,690 smallholder farmers and 16,200 SMEs that will jointly avoid 14.27 anticipated million tons of CO2 equivalent in its 10 years expected lifetime. Moreover:
- Women-led SMEs and women farmers are expected to represent 30% of supported beneficiaries.
- 122,807 SMEs and farmers are expected to report an increase in its turnover.
- 25 Financial Service Providers shall adopt business innovative processes and 12 shall adopt Fintech solutions and processes to lend to SMEs and smallholders.
