The objective of the investment is to allow the company to continue its expansion in the Kenyan market specifically. The proceeds of the loan will primarily be used to fund working capital needs. Sistema.bio provides smallholder farmers in rural areas access to a renewable source of energy (biogas), which can be used to replace fossil fuel and wood-fired cooking, and biofertilizer (bioslurry), which can be used increase crop yields and replace chemical alternatives. In addition, the replacement of wood and fossil fuels and chemical fertilizers plus the efficient management of animal waste mitigate GHG emissions and have significant health benefits. Moreover, use of biogas reduces the time and labour burden of fuelwood collection. Combined, this contributes to increases in household productivity and potential cost savings, leading to socioeconomic empowerment and ultimately spurring economic growth. By providing a loan to Sistema.bio, FMO helps to close a financing gap and supports the company to expand into new markets and increase their social and environmental impact.
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ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism