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About AgDevCo. Social impact investor and project developer operating in SSA with 18 investments in Mozambique, Tanzania, Zambia and Ghana (and soon Malawi)
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About AgDevCo • Social impact investor and project developer operating in SSA with 18 investments in Mozambique, Tanzania, Zambia and Ghana (and soon Malawi) • AgDevCo’s distinctive approach involves a combination of investment and hands-on, in country management support to early-stage agricultural businesses • Funded by the Private Infrastructure Development Group (PIDG) and private charitable foundations Ability to accept higher risks and lower (risk-adjusted) returns
Malawi background • There are also new opportunities for Malawi’s farmers…. • Rapidly growing regional markets and agricultural growth corridors • Potential to link farmers to large buyers of agricultural commodities SAGCOT BAGC
AgDevCo approach • SME agribusiness investments • Typically these are start-up or early stage farms and agriprocessing businesses. Financing needs can range from $50,000 to $2,000,000 • SME businesses are generally undercapitalised and need ongoing management support • To maximise chances of success, AgDevCo makes investments in clusters of SMEs to strengthen value chains Example of SME cluster in Mozambique
AgDevCo approach • Irrigation developments • Medium-sized to large irrigation schemes typically of 1,000 to 3,000ha which combine commercial and smallholder farms • AgDevCo’s role is to act as the project developer, deploying capital at risk
Results • A £10 million AgDevCo-managed Catalytic Fund for agribusiness investment in Malawi could deliver within 10 years: • £61 million third-party capital leveraged into Malawian agriculture businesses, from development finance and commercial sources • 161,000 smallholder farmers linked to profitable markets with an annual per capita income benefit of £170 in perpetuity • at least 500 emergent farmers on irrigated plots of five to 10 hectares using modern farming practices and achieving world-class yields • an extra 173,00MT of food crops produced by Malawian farmers worth some £35 million Fund expected to be operational from Q3 2013