In 2013, we plan to increase our market presence in the agricultural sector in Africa by building and expanding our knowledge of the market and growing our portfolio. Latin America, a major agricultural producer, will remain a key focus area for FMO as we strengthen our expertise in the region while broadening our sub-sector knowledge in grains & oilseeds, soft commodities and farm inputs. Our pipeline is promising and there is sufficient market demand to anticipate a fruitful year.
Although we currently finance some biofuel projects, such as those using leftover materials from the food production of soy and sugar for ethanol and biodiesel, we will not finance projects where the sole purpose is to use agricultural products for fuel.
Going forward we will focus on contributing to a more efficient use of land and water. The main focus will be on sustainable production methods and boosting productivity while reducing waste. We aim to develop methodology to measure the footprint of our investee companies (emission/water usage) and set a portfolio reduction target.
Looking further ahead, our development impact objectives include increasing our exposure in the Agribusiness, Food & Water sector, developing sector-specific impact indicators and increasingly moving into low-income countries. Partnerships with other banks, as well as with Dutch companies active in emerging markets, will continue to play an important part in this strategy.