Komaza Smallholder Forestry Vehicle (SFV)

The Komaza Smallholder Forestry Vehicle (SFV) is a financial instrument designed to provide low-cost, long-term finance to smallholder farmers and forestry companies in Kenya by packaging tree production partnership contracts for institutional investors.

• The Smallholder Forestry Vehicle (SFV) functions as an investment mechanism that packages tree production partnership contracts from thousands of smallholder farmers to sell to investors. This structure aims to lower capital costs for forestry companies and reduce transaction costs and risks for investors by separating the risks of individual tree assets from the operating company's risks.
• As of July 2020, Komaza had partnered with 25,000 farmers across Kenya and planted more than 6 million trees. The company raised a USD 28 million Series B funding round involving investors such as Novastar Ventures, AXA Investment Managers, FMO, and Mirova’s Land Degradation Neutrality Fund.
• The SFV model involves a network of stakeholders: farmers provide land, labor, and security; community leaders verify land-use rights; impact investors (such as Conservation International) provide concessional debt for proof of concept; and philanthropies (such as Ashoka and Kiva) provide grants for software and impact tracking systems.

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} }