FREDA was established in January 2009 as a joint activity between the Government of Armenia and the International Fund for Agricultural Development (IFAD).

FREDA’s overall objective is to support development of the sectors of agribusiness of RA, which contribute the most to the economic development of the rural areas of RA.

FREDA’s target group comprises of organizations operating in the regions of RA that are involved in the following sectors of agribusiness:

- food processing and canneries
- milk processing
- winery
- fish factories and processing

FREDA makes private equity investments by acquiring ordinary and preferred shares and also may provide short-term subordinated loans for working capital financing.