The FairFund Federation (‘Federation’) is based in Geneva, Switzerland as a verein structure over a network of FairFund Foundation not for profit companies.
The role of the Federation is to act in an administrative position linking the Members of FairFund Foundation companies and their projects to the Risk Mitigation Reserve Trust (RMRT).
The mission and objective of the Federation are the delivery of capital to areas of need and the protection of that capital through a unique mechanism, which provides for the mitigation of risks and the localisation, where applicable, of international debt within the recipient country. No additional foreign debt will be created. The Federation will become a net economic investor in the jurisdictions of its members’ projects, creating economic stability and growth in perpetuity without repatriation of capital. The business model used by the Federation meets the requirements of Sharia law. The Federation has no alignment with any political, religious or ethnic grouping.
The FairFund project was set up in response to a call made by the UK Government before the G8 Gleneagles Conference in 2005, for a Private Funding initiative for the delivery of capital to Sub-Saharan Africa. The FairFund Foundation (UK) Ltd responded to that call and was launched at the Commonwealth Business Council, “G8 Africa Business Forum 2005”.
Subsequently the Federation was formed and registered in Geneva, Switzerland, in 2009, to co-ordinate the FairFund Foundation companies and all aspects of the Members’ entitlement to apply for Concession Funding. There is a current and future demand for Concession Funding from the RMRT. FairFund Ireland is the exclusive fund raising entity for the RMRT. To raise the required capital for the RMRT, FairFund Ireland must be capitalised to a value acceptable to the banks for protection of their costs and fees.
Benefaction will be of free, clear and unencumbered capital, so that absolute neutrality may be maintained without liability to any lender or financial institution.
Historically, potential lenders for infrastructure and enterprise development in areas of need have been reticent to facilitate financing of such investments, mainly because of the risks of lending: whether such risks were political, sovereign credit, exchange rate, or simply project related. The mitigation of such risks is fundamental for the economic development of any country and in particular that of developing countries. The main activity of the Federation is the RMRT and Concession funding for approved members’ projects.
The Federation envisages a world where every human being is empowered to fulfil his or her capabilities and to flourish; it is committed to the achievement of the United Nations Millennium Development Goals.