The Common Fund for Commodities (CFC) is an intergovernmental financial body, whose Agreement was negotiated within UNCTAD and signed in 1980. The EU Member States, the Organization of African Unity, the Common Market for South East Africa and the Caribbean Common Market Community are CFC members. The Fund is regulated by the Board of Governors and an Executive Committee chaired by the Fund’s General Manager.
The Organisation’s primary purpose is to strengthen the social and economic development of the countries producing raw materials through the financing/co-financing of projects aimed at improving the production and marketing of commodities of interest to developing countries and to Least Advanced Countries, in particular. The Fund also aims to improve market efficiency and the development of innovative products. In order to achieve the above-mentioned objectives, it works closely with international organizations dealing with commodities, both for projects and for the development of five-year action plans.
As regards the sources of financing, in the Agreement establishing the Organisation it was envisaged to provide the fund with start-up capital divided into two accounts. The funds in the first account are used to guarantee – through the bank interest annually accruing from its investment – the coverage of the costs of the Secretariat and other administrative costs. The funds available in the second account are used to finance projects.
The Agreement establishing the CFC, regarding the part of financial instruments for raising the funds necessary for the functioning of the Organization, was amended by the Fund’s Board of Governors in December 2014, providing for new fundraising measures to be in a position to have additional sources of financing.
The CFC has 101 Member States (including 14 OECD Member States) and 9 additional institutional members, including the European Union. The Governing Council is made up of Member States’ representatives. The General Assembly meets every year and is attended by Member States, institutional members and international organizations as observers. The next Assembly is called for 11 and 12 December 2024. On that occasion the Advisory Committee will be renewed.
Additional bodies include:
- the Executive Committee, which ensures the Fund’s overall management;
- the Consultative Committee, made up of nine independent experts, which intervenes on the technical and economic aspects of the programs submitted to the Fund for financing;
- the Secretariat.