EU Funding opportunities for innovative projects in the Food & Nutrition Security sector
Post on 12-Jan-2017
The growing global demand for agricultural innovation makes it vital to assess the characteristics that separate effective from ineffective innovation fund mechanisms
DESIGNING AND IMPLEMENTING AGRICULTURAL INNOVATION FUNDS: Lessons from Competitive Research and Matching Grant Projects 2010 The International Bank for Reconstruction and Development/ The World Bank
New research needs from the private sectorFunding innovation through innovative research funding Funding innovation through agribusiness funding
Research gaps:Research into processing, storage, food preparation and other food interventions post-farm Example: EC/FP7 AFTER: African Traditional Food Revisited by Research ; DANIDA/UniBRAIN incubators; Soy milk BeninMechanization and renewable energyHealthier packaged food Example: Pack4Food
Renewable Energy research needsIrrigation:Diesel pumping systems fueled with biofuel, micro-hydro, solar PV, windAgro-processing:Biodiesel pumps, micro-hydro, microgrids, solar dryersMechanical energy: Biodiesel pumps, micro-hydroCooking:Cleaner biomass cookstoves, biogas, solar cookersCooling/refrigeration:Larger-scale solar PV and wind, biodiesel, and micro- and picohydro stations (power generation of under 5 kW); biodiesel engines
National research fundingValue chain based research fundingInternational research funding (int)
Some countries have managed to put in place structures or platforms to encourage operational use of research results by producers and took a serious option for solving the problem of financing the systemPublic funding (donors or national subsidies) can complement participants fees: a % of the increased global turn-over of a value chain, on charged services
In Senegal, In Senegal the Fonds National de Recherches Agricoles et Agro-alimentaires (FNRAA) offers competitive funds for research addressing the real needs of producers & private sector.FNRAA is a mechanism for funding public agricultural research since it involves innovative farmer organizations directly via the Conseil National de Concertation et de Coopration des Ruraux in its decision-making and evaluation. It allows research orientation to the demands made by the producers and agribusiness needs.
In Burkina Faso, the Ministry of Research Science and Innovation created in January 2011 the National Fund for Research and Innovation for Development (FONRID).orientation of research towards demand and national priorities; improving the quality of scientific research;the promotion of invention and innovation;diversification of thescientific, technical and financialpartnership.
InIvory Coast18 value chains work with the Fonds Interprofessionnels de la Recherche et du Conseil Agricole (FIRCA)and 13 to 14 are collecting fees. The value chain actors identify the projects which FIRCA finances in the field of applied research, agricultural advice, technical training and the reinforcement of capacities.Examples: hevea , palm oil, coffee, cacao, pigs, poultry, fruit-citrus
GlobE - Global Food Security. Federal Ministry of Education and Research of GermanyReduction of Post Harvest Losses and Value Addition in East African Food Value Chains (University of Kassel): pastoral meat value chains (RELOAD research project)Trans disciplinary research: Stakeholder processes, knowledge integration and collaborative learningTwo Dutch Funding instruments on food security challenges Netherlands Organisation for Scientific Research the Global Challenges Programme the Applied Research Fund : involvement of practitioners
African banksNational SME funding (Ghana, Nigeria, South Africa)EC-SME equity funds (int)NGO-SME equity funds (int)International research funding (int)Investment funds(int)Matching funds (int)
Most banks have SME departments but exceptionally agribusiness - with varying degrees of understanding of what constitutes an SME, whether by annual turnover, number of employees, or financing needs. A number of banks are also trying to formalise their relationships with agri SMEs through Business Clubs for SME managers and overseas trips to market trade finance products.Financial institutions are not lending to agricultural SMEs (the supply side).And SME agribusinesses are not applying for finance (the demand side).
too risky and unprofitable to lend topoorly managed, inexperienced andlacking sound business plansundercapitalised and without sufficient assets such as land against which to lend
There is a missing middle of financial products that are suitable for agricultural SMEs and that this is holding back their growth.Agricultural SMEs tend to be too big for very small-scale loans offered by NGOs and others, but too small to be able to borrow money from commercial lenders affordably and viablyThere is a need for innovative funding schemes to bring tailor-made loan products to agricultural SMEs
In Nigeria: the Fund for Agricultural Financing (FAFIN) and the Nigerian Funding and Youth Empowerment Programmean innovative agriculture-focused investment fund that provides tailored capital and technical assistance solutions to commercially-viable small and medium-sized enterprises (SMEs) and Intermediaries across the agricultural sector27 Nagropreneursthat received the initial grant through the Federal Ministry of Agriculture (FMARD) and Rural Development under the Youth Employment in Agriculture Programme (YEAP).One of the fundersisKfW.KfW Development Bank carries out Germanys Financial Cooperation with developing and emerging countries on behalf of the German Federal Government.FAFIN has a preference for investment opportunities that enable import substitution, increase food security, or bridge gaps and fix inefficiencies along supply chains.
In South Africa: Agro-Processing and Agriculture funding The Industrial Development Corporation (IDC) of South Africa funds the development of competitive proposals of competitive processed food, beverage, fibre, forestry and derivative industry that optimally utilises and develops local and regionalresources to supply domestic demand and increase participation in international trade.This is achieved by expanding production capacity and promoting value adding expansionary agro processing activities in a manner that fosters economic inclusivity.The business unit of IDC provides support to a wide range of economically viable activities in agro-processing (food and non-food) sectors such as: Maize, Wheat and sugar, Livestock such as cattle, poultry, pigs and game, Fishing and aquaculture, Beverages, Forestry, Horticulture including fruit, vegetables, nuts, tea and coffee
In Ghana: EDAIF : Export Development Agricultural Investment Fund (2000, amended 2011) Development and promotion of agriculture, relating to agro-processing and agro-processing industry;Provision of credit, refinancing and credit guarantee through designated financial institutions to persons in the agriculture and agro-processing sectors of the economy;Appraisals and studies necessary to determine areas of the agriculture and agro-processing sectors that need intervention; andMonitoring and evaluation of the interventions.
ICCO Cooperation, an international Dutch development organization launched in May 2015 itsAgri-Business Innovation ChallengeThe purpose is to kick-start and boost the business of innovative agri-entrepreneurs in Uganda. There were cash prizes up to EUR 20,000 for the three most promising businesses to roll out their business models, and a chance to qualify for investment by the ICCO Investment Fund.
Rabobank Foundation supportsAfrican exporters of fruits and vegetables can benefit from slow capitalfarmers to combine forces by forming cooperativesthe purchasing power, the sales position and obtain financing to develop farming and export operations.It allows to commission research according to FO and private sector priorities
22 June, 2015. Utrecht. Rabobank. Conference "The Future of Farming and Food security in Africa".
Entrepreneurs 4 entrepreneurs (Belgium)Drink yoghurt Laki Laki in Kenia
Farm in Thika, factory in Juja Nutritious breakfast (tourism) and orphanage.Request: 25,000 Euro for business plan development REEL FRUIT (Nigeria)
Vitamin rich food snacks. Mechanized food processing. Request: 80,000 EuroGeoffman Chili (Uganda):
Chili pepper for food, pharmacology, pepper-spray. The trees prevent erosion. Request: 50,000 Euro
The Delegation of the European Union to Uganda launched in 2015 a SME Development Fund (Equity Fund) It will be open to all sectors of agribusiness, including livestock.Invest in commercially viable enterprises with strong growth potential that empower smallholder farmers in Uganda to increase their revenue, livelihoodFund size: USD 30 million (at first closing) EU will invest EUR 10 millionInvestment period: 5 yearsThe EU/Uganda aims at targeting at least 25-30 companies with the first closing of the fund.
The set up of this fund was informed by a study on the commercial beef industry.
The overall objective of this study was to contribute towards obtaining an insight into the beef value chain in order to design interventions that lead to commercial sustainable solutions that contribute to better performance through a public-private partnership with focuson small and medium enterprises.
Investment: Individual investments in the range of 200,000 - 5 million. Business Development and Advisory ServicesValue Chain Analysis for better accountability and decision making. EU blending framework. Call for Proposals (Grants): Smaller size investments may be addressed through Call for Proposals Financed out of thematic programmes, as well as regional and country programmes.