Resources

Limited access to capital is a key constraint for agricultural growth, due to higher perceived risks and weak financial infrastructure for the sector. This brief provides a set of policy recommendations designed to help promote the expansion of agricultural finance in Africa. It is addressed to African policy makers from the broad range of ministries, central banks and regulatory authorities involved in agricultural finance. It concerns also donors, financial institutions and farmers’ organizations engaging in policy dialogue and advocacy.

• Finance & risk management
• Hard & soft infrastructure

These Voluntary Guidelines serve as a reference and provide guidance to improve the governance of tenure of land, fisheries and forests with the overarching goal of achieving food security for all and to support the progressive realization of the right to adequate food in the context of national food security.

They are intended to contribute to the global and national efforts towards the eradication of hunger and poverty, based on the principles of sustainable development and with the recognition of the centrality of land to development by promoting secure tenure rights and equitable access to land, fisheries and forests.

The guidelines were drafted by FAO and its partners after extensive consultation and will be presented to the Committee on World Food Security for consideration in May 2012.

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• Delivery & implementation mechanisms
• Hard & soft infrastructure
• Investment & entrepreneurship pipeline
• Leadership and alignment
• Strategy & priorities

At the Grow Africa Agricultural Investment Forum, country teams presented to investors. The attached template was prepared by Monitor Group as a tool to help structure a short presentation to quickly convey information needed to generate the interest of investors.

• Investment & entrepreneurship pipeline

This report outlines Grow Africa’s core approach to achieving agricultural transformation through multi-stakeholder partnerships. It was developed by WEF’s New Vision for Agriculture Initiative, and prepared in collaboration with McKinsey & Co. It draws from global experience with ambitious public-private collaboration initiatives in the agriculture sector, and outlines six elements that are essential stepping-stones toward success in a large-scale transformation effort.

• Delivery & implementation mechanisms
• Finance & risk management
• Hard & soft infrastructure
• Investment & entrepreneurship pipeline
• Leadership and alignment
• Strategy & priorities

Agricultural investments are complex and can both drive positive transformation, or have negative impacts. Large-scale land acquisitions have particularly led to controversy. The FAO, World Bank, IFAD and UNCTAD have proposed principles to guide responsible agricultural investment, and are managing a broad consultation process to agree them. The proposed guidelines provide a reference framework for investments linked to Grow Africa.

• Delivery & implementation mechanisms
• Investment & entrepreneurship pipeline
• Strategy & priorities

The Africa Enterprise Challenge Fund provides grants and interest free loans to businesses who wish to implement innovative, commercial viable, high impact projects in Africa. It offers a possible source of catalytic finance for businesses making investments linked to initiatives supported by Grow Africa. The AECF supports businesses working in agriculture, financial services, renewable energy and technologies for adapting to climate change. It also supports initiatives in media and information services where they relate to these sectors. Applications are assessed during competitive rounds which each have their own entry criteria. Winners can receive up to US $ 1.5 million.

• Finance & risk management

The Beira Agricultural Growth Corridor (BAGC) is a partnership initiative in Mozambique supported by Grow Africa. The BAGC Catalytic Fund invites Mozambican entrepreneurs located in Sofala, Manica and Tete Provinces to submit agribusiness investment applications. The fund, managed by AgDevCo, makes debt and equity investments in commercially-viable agribusinesses in the Beira Corridor which are expected to have a positive social impact on local farmers and communities. Amounts invested by the Catalytic Fund are typically in the range US$50,000 to US$500,000 per business.

• Finance & risk management