AGRICULTUREECONOMYTOP STORY

AfDB invests $9m in Fund for Agricultural Finance in Nigeria

The African Development Bank has approved 9 million dollars equity investment (approximately 12 per cent of the fund’s capitalisation) in the Fund for Agricultural Finance in Nigeria (FAFIN) to provide expansion capital to agricultural small and medium-sized enterprises (SMEs).

FAFIN is a first-generation private equity fund that provides financial, capacity-building and technical assistance to commercially viable SMEs in the Nigerian agribusiness sector, through a unique value chain-centric approach, and using a combination of equity, quasi-equity and convertible loan instruments.

The fund implements its strategy and constructs its portfolio through a bifocal lens consisting of the twin objectives of competitive financial returns and measurable positive social impact.

It is jointly sponsored by the German KfW Development Bank and the Government of Nigeria, through the Federal Ministry of Agriculture and Rural Development (FMARD). The Fund Manager is Sahel Capital (Mauritius) Limited, a fund management firm incorporated in Mauritius in 2013.

The project is expected to deliver strong development outcomes from (i) household benefits and employment through the creation of a large number of jobs and the provision of certain agricultural products; (ii) positive gender and social effects through the implementation of out-grower schemes and supporting rural development; and (iii) private sector development through alleviation of financial constraints faced by agribusinesses and enhancing agricultural value chains.

The project’s contribution to inclusive growth is expected to be significant, given the large numbers of jobs to be created and out-growers to be reached at the level of sub-projects. Its contribution to green growth is expected to be low, because the Fund targets the agribusiness sector with some expected negative effects on the environment.

The Fund’s primary focus will be on SMEs across the agricultural value chain with crop value chain and geographic diversification. It aims at fixing broken value chains to increase efficiencies, reduce post-harvest loss, and increase smallholder farmer incomes and SME agribusiness profitability.

Investment instruments will be primarily quasi-equity (convertible bonds, preference shares and structured royalties) and direct equity. The ticket size ranges from USD 500, 000 to USD 5 million.

The Fund is aligned with the Bank’s Ten Year Strategy focusing on inclusive growth, strengthening agriculture and food security, and access to local SME finance; which is encapsulated in the Bank’ High Five Development Agenda for Africa, specifically Feed Africa and Industrialise Africa. It is also in line with the Bank’s Strategy for Agricultural Transformation in Africa (2016-2025), Strategy on Jobs for Youth in Africa (2016-2025) and the Bank’s Country Strategy Paper for Nigeria (2013-2017), which supports an enabling environment for agriculture.

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  • Today, while I was at work, my cousin stole my iPad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!

  • I know this if off topic but I’m looking into starting my own weblog and was curious what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100% sure. Any tips or advice would be greatly appreciated. Thank you

  • Hey are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you require any html coding knowledge to make your own blog? Any help would be really appreciated!

  • Hello, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you protect against it, any plugin or anything you can recommend? I get so much lately it’s driving me crazy so any help is very much appreciated.

  • Hello! Do you know if they make any plugins to help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results. If you know of any please share. Appreciate it!

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  • Hiya! You some kind of professional website hosting? Great message. Are you able to tell me learn how to subscribe your blog?

  • Great blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Thanks a lot

  • Greetings from Los angeles! I’m bored to death at work so I decided to check out your site on my iphone during lunch break. I really like the info you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyhow, excellent site!

  • Today, I went to the beach front with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  • I am curious to find out what blog platform you are working with? I’m experiencing some minor security problems with my latest blog and I’d like to find something more secure. Do you have any suggestions?

  • At this time it appears like Movable Type is the top blogging platform available right now. (from what I’ve read) Is that what you are using on your blog?

  • I’m not that much of a online reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your site to come back in the future. All the best

  • I’m not sure exactly why but this website is loading incredibly slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later and see if the problem still exists.

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  • Hey there this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get advice from someone with experience. Any help would be