PRIVATE SECTOR WINDOW Public Disclosure Authorized...
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GAFSP | Private Sector Window | May, 2016 PRIVATE SECTOR WINDOW PORTFOLIO REVIEW As of May 2016, GAFSP’s Private Sector Window (PrSW) funding is supporting 36 investment projects in agribusiness with a total project size of $1,212 million, deploying $225 million of GAFSP PrSW funding. Taking a chance on projects that other commercial investors have passed is what GAFSP’s Private Sector Window does best: investing across the entire food supply chain from farm inputs to logistics and storage, to processing and financing. We use blended finance solutions and the International Finance Corporation’s (IFC) expertise and knowledge to support projects in the agricultural sector which may not attract commercial funding due to perceived high risks in the sector. GAFSP funding is co-invested alongside IFC funding but we take it one step further: addressing market failures by providing affordable funding with less demanding terms. This allows us to invest in early stage or riskier projects that hold high potential for development impact and financial sustainability. That means that we can partner with companies who include farmers as part of their overall value chain, providing access to markets, financing and storage, and increasing production and incomes for those living and working in the world’s lowest income countries. We also help to raise capacity building with our advisory services, providing on- the-ground training and advice for businesses and farmers in improving farmer productivity, strengthening standards, reducing risks and mitigating climate change effects. ABOUT GAFSP A Tanzanian farmer plowing his field | Photo by Bradford Roberts, IFC Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript of PRIVATE SECTOR WINDOW Public Disclosure Authorized...
GAFSP | Private Sector Window | May, 2016
PRIVATE SECTOR WINDOW
PORTFOLIO REVIEW
As of May 2016, GAFSP’s Private Sector Window (PrSW) funding is supporting 36 investment projects in agribusiness with a total project size of $1,212 million, deploying $225 million of GAFSP PrSW funding.
Taking a chance on projects that other commercial investors have passed is what GAFSP’s Private Sector Window does best: investing across the entire food supply chain from farm inputs to logistics and storage, to processing and financing.
We use blended finance solutions and the International Finance Corporation’s (IFC) expertise
and knowledge to support projects in the agricultural sector which may not attract commercial funding due to perceived high risks in the sector.
GAFSP funding is co-invested alongside IFC funding but we take it one step further: addressing market failures by providing affordable funding with less demanding terms. This allows us to
invest in early stage or riskier projects that hold high potential for development impact and financial sustainability.
That means that we can partner with companies who include farmers as part of their overall value chain, providing access to markets, financing and storage, and increasing production and incomes for those living
and working in the world’s lowest income countries. We also help to raise capacity building with our advisory services, providing on-the-ground training and advice for businesses and farmers in improving farmer productivity, strengthening standards, reducing risks and mitigating climate change effects.
ABOUT GAFSP
A Tanzanian farmer plowing his field | Photo by Bradford Roberts, IFC
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GAFSP | Private Sector Window | May, 2016
From Malawi to Bhutan to Nicaragua, our projects are making a difference in the lives of millions of small farmers across the world. From coffee plantations in Central America to the mango orchards of Malawi, our combined investment and advisory services have supported private sector agribusiness in low-income countries, and linked smallholder farmers to markets by improving their access to finance, technology, expertise and inputs. In total, our 36 combined investment projects are expected to reach nearly 3.3 million farmers. Below is a list of our current projects:
OUR PROJECTS
PROJECT COUNTRY INVESTMENT TYPEIFC INVESTMENT(MILLIONS)
GAFSP INVESTMENT (MILLIONS)
GAFSP PRODUCT
ADOPTING HIGH YIELD AND INNOVATIVE TECHNOLOGYAfrica JuiceSupporting the growth and expansion of Sub-Saharan Africa's first certified Fairtrade company that grows and processes tropical fruit
Ethiopia Direct Investment in Agribusiness Company
$3 $3 Preferred Shares
*
Malawi MangoesSupporting the first commercial fruit farming enterprise and fruit processing company in Malawi to expand tropical fruit production and processing operations
Malawi Direct Investment in Agribusiness Company
$5 $5 Subordinated Loan
Mountain Hazeluts Investing in hazelnut production to boost incomes and create jobs for smallholder farmers in Bhutan.
Bhutan Direct Equity Investment in Agribusiness Company
$3 $6 Preferred Shares
Pearl Dairy Helping the dairy sector in Uganda achieve its full potential
Uganda Direct Investment in Agribusiness Company
$4 $4 Subordinated Loan
Rubber RenovationProviding financing to rubber farmers in Liberia to replant and renovate aging rubber plantations
Liberia Investment Through Financial Institution
$25 $11.25 Risk Sharing Facility
Tiviski DairySupporting the dairy industry in Mauritania
Mauritania Direct Investment in Agribusiness Company
EUR 3 EUR 3 Senior Loan
Wienco LiberiaFunding capital expenditure and pre-harvest financing of agricultural inputs for cocoa
Liberia Direct Investment in Agribusiness Company
$2.5 $2.5 Subordinated Loan
NUTRITIONAIFLFunding a processing facility to make a nutritious formula for babies and infants in Rwanda. Includes an additional project to create a holding company, Africa Improved Foods BV, as a platform for investments in the manufacturing of fortified foods in Rwanda.
Rwanda Direct Investment in Agribusiness Company
$8 $8 Common Shares/Senior Loan
InstaExpanding production of therapeutic food distributed by UNICEF to save lives
Kenya Direct Investment in Agribusiness Company
$3.5 $3.5 Subordinated Loan
RAISING AGRICULTURAL PRODUCTIVITY AND IMPROVING CLIMATE RESILIENCEBalton CPIncreasing rural incomes and improving the lives of small farmers across Africa
Kenya Direct Investment in Agribusiness Company
$8 $2 Subordinated Loan
FertiplantDeveloping the nascent fertilizer industry in Kenya
Kenya Direct Investment in Agribusiness Company
$5 $5 Subordinated Loan
KTDAA climate smart project to support the largest tea business in East Africa
Kenya Direct Investment in Agribusiness Company
$12.5 $15 Loan
MeridianExpanding the reach of agri inputs to farmers in Africa
Mozambique, Malawi, Zambia
Direct Investment in Agribusiness Company
$15 $15 Subordinated Loan
Pran FoodsSupport a subsidiary of food processing group PRAN, to expand production capacity, create jobs and integrate farmers into retail supply chains
Bangladesh Direct Investment in Agribusiness Company
$10 $5 Senior loan
Roya RenovationProviding financing to farmers for the renovation of coffee plantations affected by coffee rust
Nicaragua Investment Through Financial Institution
$12 $6 Risk Sharing Facility
*
SMTPIncreasing production in the poultry sector in Magagascar
Madagascar Direct Investment in Agribusiness Company
$1.5 $1.5 Subordinated Loan
*
GAFSP | Private Sector Window | May, 2016
PROJECT COUNTRY INVESTMENT TYPEIFC INVESTMENT(MILLIONS)
GAFSP INVESTMENT (MILLIONS)
GAFSP PRODUCT
INCLUSIVE BUSINESS MODELProbiotechHelping feed manufacturer Probiotech Industries enhance poultry farm productivity and raise rural incomes
Nepal Direct Investment in Agribusiness Company
$1.9 $1.9 Common Shares
*
IMPROVING ACCESS TO FINANCEAcleda MFIProviding financing solutions to agricultural enterprises and SMEs
Cambodia Microfinance Institution $40 $20 Senior loan
Acleda MFIProviding financing solutions to agricultural enterprises and SMEs
Myanmar Microfinance Institution $3 $3 Senior loan
AIFL Farmer Financing FacilityHelping farmer cooperatives gain access to finance and training(Includes as subprojects a renewable credit line to KCB Bank Rwanda Ltd. and a risk participation agreement supporting loans to farmer cooperatives in Rwanda.)
Rwanda Investment Through Financial Institution
$5.0 $3.6 Credit Line/ Risk Sharing Facility
*
Barry Callebault Increasing access to finance and inputs for cocoa farmers in Cote D’Ivoire
Cote D’Ivoire Investment Through Financial Institution
$4.5 $1.1 Risk Sharing Facility
Cameroon WB/IFC - BICEC RSFProviding financing to farmers to increase and modernize cassava, maize and sorghum value chains
Cameroon Investment Through Financial Institution
$4.2 $1.05 Risk Sharing Facility
Cameroon WB/IFC - SocGen RSFFinancing farmer cooperatives to increase value chain productivity
Cameroon Investment Through Financial Institution
$4.2 $1.05 Risk Sharing Facility
Ethiopia CoffeeProviding financing to farmer cooperatives
Ethiopia Investment Through Financial Institution
$9.1 $1.4 Risk Sharing Facility
FDLIncreasing micro financing to rural and agribusiness sectors in Nicaragua
Nicaragua Microfinance Institution $5 $2 Subordinated Loan
GWFP I HSBCSupporting cotton farmers in Mali
Mali Investment Through Financial Institution
EUR 3 EUR 3 Risk Sharing Facility
GWFP I BICISSupporting farmers through warehouse financing in Senegal
Senegal Investment Through Financial Institution
$10 $3 Risk Sharing Facility
*
GWFP II-Burkina FasoHelping Burkina Faso's biggest cotton company support local farmers and finance the 2014/15 cotton campaign
Burkina Faso Investment Through Financial Institution
EUR 30 EUR 15 Risk Sharing Facility
*
GWFP CRDBSupport financing for Tanzania’s small farmers and cooperatives
Tanzania Investment Through Financial Institution
$15 $10 Senior loan
GWFP I NedbankIncreasing access to finance to SMEs and smallholders by providing warehouse financing
Africa Investment Through Financial Institution
$50 $7.5 Risk Sharing Facility
GWFP SofitexSupporting cotton farmers in Burkina Faso
Burkina Faso Investment Through Financial Institution
EUR 12.5 EUR 12.5 Risk Sharing Facility
Root CapitalHelping Root Capital, a nonprofit development financier, to expand into new commodities and new markets in Africa
Africa Social Entrepreneur $5 $5 Senior loan
SIB CargillA project to support cocoa cooperatives and farmers
Cote D’Ivoire Investment Through Financial Institution
$3 $750,000 Risk Sharing Facility
SIB RSFIncreasing lending for women in agribusiness in Côte D’Ivoire
Cote D’Ivoire Investment Through Financial Institution
$20 $1.5 Risk Sharing Facility
Company also receiving GAFSP advisory services*
GAFSP | Private Sector Window | May, 2016
A SNAPSHOT AT OUR PORTFOLIO The PrSW continues to play a major role in lending and providing guarantees through risk-sharing facilities with financial institutions including social lenders, microfinance institutions and commercial banks.
Geographically, nearly three quarters of the PrSW is allocated in Sub-Saharan Africa, where sixty percent of IDA countries are located. However, recent fiscal years have seen some exciting new investments in Asia, specifically in Cambodia, Myanmar and Bhutan.
PORTFOLIO BREAKDOWN BY REGION PORTFOLIO BREAKDOWN BY PRODUCT
Farmers building field terraces in Rwanda | Photo by A’Melody Lee, World Bank
Common Shares3% Preferred
Shares4%
Risk Sharing Facility
29%
Senior Loan42%
Subordinated Loan22%
Asia20%
Latin America & the Caribbean
5%
Sub-Saharan Africa75%
