Komaza Smallholder Forestry Vehicle (SFV)

The Smallholder Forestry Vehicle (SFV) is a financial mechanism that packages tree production partnership contracts from smallholder farmers to attract institutional investors. By separating asset risk from operating company risk, it lowers the cost of capital and reduces transaction costs. As of July 2020, Komaza had partnered with 25,000 farmers in Kenya and planted over 6 million trees, securing a USD 28 million Series B funding round from various impact investors and funds.

• The Smallholder Forestry Vehicle (SFV) functions by packaging tree production partnership contracts from thousands of smallholder farmers for sale to investors, which lowers capital costs for forestry companies and provides farmers with access to long-term finance.
• SFV lowers the cost of capital and attracts a more diverse range of investors than traditional balance sheet finance by segregating the risks of individual tree assets from the risks of the operating company.
• As of July 2020, Komaza had partnered with 25,000 farmers across Kenya and planted more than 6 million trees, raising USD 28 million in a Series B round from investors including Novastar Ventures, AXA Investment Managers, FMO, and Mirovas Land Degradation Neutrality Fund.

APA

Climate Policy Initiative (2021). Komaza Smallholder Forestry Vehicle (SFV). https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/komaza-smallholder-forestry-vehicle-sfv-2/

Chicago

Climate Policy Initiative. Komaza Smallholder Forestry Vehicle (SFV). 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/komaza-smallholder-forestry-vehicle-sfv-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Komaza Smallholder Forestry Vehicle (SFV) |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/komaza-smallholder-forestry-vehicle-sfv-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021komaza, author = {{Climate Policy Initiative}}, title = {{Komaza Smallholder Forestry Vehicle (SFV)}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/komaza-smallholder-forestry-vehicle-sfv-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }