The Africa Investment Forum organized a roundtable to present two agrifood agreements worth nearly $ 400 million as part of the preparation for its upcoming 2021 market days.
Investment opportunities, drawn from the Africa Investment Forum pipeline, will be presented in their entirety during Market Days, which will be held from December 1-3 in Abidjan. The virtual roundtable, organized by the Atlantic Council, took place on Thursday, October 7, 2021.
During the round table, members of the FIA The team presented an overview of the transactions to investors.
The first, which requires $ 345 million in capital, involves building and operating a food market that will serve around 15 million people in a region that is expected to be Africa’s largest food trading area. It would also serve as a market where farmers would bring produce to sell to potential customers at retail or wholesale prices. Besides farmers, the food market will provide livelihoods for fishermen, meat and dairy producers and wholesalers.
The second agreement presented concerns the scale-up of a dairy milk production and packaging company in a country of the Southern African Development Community. The project sponsors have a good operational track record in the agricultural sector and they have entered into a sales agreement with a large international food and drink company for milk production. The deal, valued at $ 50.2 million, has strategic value for the national government and provides an opportunity for local production of a product that is typically imported. There is also potential for job creation and local skills development.
The roundtable also featured a roundtable with Begna Gebreyes, Senior Vice President, Africa Finance Corporation; Deji Adebusoye, Director, Sahel Capital; and Nimrod Gerber, Managing Partner, Vital Capital. Panelists discussed Africa’s role in global supply chains, bottlenecks to agricultural productivity, infrastructure limitations and other issues relevant to the agro-food sector. They agreed that Africa still lacks the processing capacity to add value to its raw materials, cocoa being cited as an example.
Agriculture and agribusiness are one of the five priority investment sectors under the Africa Investment Forum Unified response to the pillars of Covid-19 (https://bit.ly/3luNb1P), in addition to energy and climate change, health, TIC/ Telecoms, and industrialization and trade.
Africa Investment Forum Senior Director Chinelo Anohu said: “Agriculture is one of the pillars of the African economy: it is the main employer and it is fundamental to transform rural areas, reduce the poverty and facilitate economic growth. As a sector, agriculture has been underfunded with investment to date, and the Africa Investment Forum’s vision is to be a catalyst for significant investments to facilitate growth over the next decade, to improve productivity and income in a fair and sustainable manner.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Communication and External Relations Department
African development bank
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About the Africa Investment Forum:
The Africa Investment Forum is a multi-stakeholder and multidisciplinary platform that advances private and public-private partnership projects towards bankability, mobilizes capital and accelerates transactions to financial close. A flagship initiative of the African Development Bank, the Forum was launched in 2018 with seven other founding partners: Africa 50; the African Finance Corporation; the African Import-Export Bank; the Development Bank of Southern Africa; the Bank of Commerce and Development; the European Investment Bank; and the Islamic Development Bank.
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (Automatic document feeder) and the Nigeria Trust Fund (NTF). Present on the ground in 44 African countries with a field office in Japan, the AfDB contributes to the economic development and social progress of its 54 regional member states.
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