US$1 million grant for Grow Africa’s African Agribusiness Engine
Grow Africa and the African Development Bank signed, on Wednesday, 12 June 2019, a grant agreement of US$1 million to implement Grow Africa’ African Agribusiness Engine, which is a private sector investment mobilization platform.
The African Agribusiness Engine’s overarching goal is to mobilize private sector investment around an integrated marketstructure. This will be achieved by building an integrated business pipeline model that generates andactivates investments with bankable business plans in priority value chains on the continent.
Massive investment in African agriculture is desperately needed to help fix the broken food system. Private sector investment can play a vital role in delivering inclusive economic growth, environmental sustainability and poverty reduction if it adheres to some key principles. Therefore, it is critical now more than ever to understand what types of investment in agriculture are needed, how they should be governed, and how they can be beneficial for all stakeholders—companies, governments, and farmers.
Today’s Africa Agricultural sector needs 1) a clear understanding of the business and market opportunities, 2) dynamic and real time engagement with agribusinesses and 3) a network of strategic partners and clients. This is where Grow Africa and the African Agri-Business Engine (AABE) comes in.
At the initial stage the project will be implemented in Malawi, Mozambique, Zambia, Ethiopia, Rwanda, Uganda, Kenya and will focus on:
- Creation of Market Insights and Business Intelligence: the Engine will prepare country level value chain specific market insights and business intelligence through market assessments and value chain analysis that will generate dynamic business cases.
- Business Development, Strategic Partnerships and Activation of Business/Value Chain Platforms:Bolster business engine value chain platforms at national level by building a pipelines of bankable business cases with national and regional base of companies interested in investing in priority value chains.
- Creation of Client Relationship Management with 50 Anchor Companies: Establish a continental “client relationship” network with a minimum of 50 anchor companies that will be strategic partners and clients for the African Development Bank and Grow Africa. The anchor companies will represent a range from small to medium sized agribusinesses, including commercially oriented farmers cooperatives.
The grant is funded by the AfDB’s Fund for African Private Sector Assistance (FAPA), which untied grants for technical assistance and capacity building to African governments, regional economic communities and similar intergovernmental organizations, to non-governmental organizations such as business associations, market regulatory institutions, business development services providers, business training and research institutions, and to public and private enterprises.