The Huruma Fund is the first project led by COFIDES within the framework of the EU blending facilities (through the AgriFi thematic facility). The project consists of setting up an Impact Investment Fund to improve access to finance in rural areas and the financial supply to small or excluded farmers in Latin America, the Caribbean, Sub-Saharan Africa and Asia. In addition, to improve the impact of the Fund, a Technical Assistance Facility (TAF) will be created to provide consultancy or training services in agriculture-related matters and to contribute to the improvement of the entities in which the Fund invests so that they broaden their impact on the excluded rural population.

The Fund's investment advisor is the Spanish company GAWA Capital, Spain's leader in impact investment. Its objective is to attract a total investment of 100 million euros, with a first tranche of losses of 10 million euros contributed by the European Union, a tranche of senior capital of 70 million euros (in which COFIDES will invest one million euros and the rest will come from private investors) and a participation of 20 million euros by FONPRODE. The TAF will have approximately 10 million euros of funds coming from the EU and other private investors (among others, the Fund's own investors or the Fund itself). The EU will contribute an additional 0.8 million euros to cover communication, evaluation and auditing costs.

The investment objectives of the Fund will be, on the one hand, financial intermediaries (such as banks or financial or microfinance institutions) that promote the financial inclusion of farmers and micro, small and medium-sized enterprises in the agricultural sector. These will account for at least 70% of their portfolio. It will also target agriculture-related organizations such as cooperatives or small and medium business organizations involved in the value chain of the agricultural sector, focusing on those with the best development prospects and risk. These will account for a maximum of 30% of their portfolio.

The EU contribution has been approved by the Board of the blending framework and the contract is expected to be formalised by the end of 2018.