GAFSP Private Sector Window

Investing for Impact

October 28, 2016

Program Overview

Public Sector Window

Administered by: World Bank

Funding: US$1,221 Million

Donors: 9 donors (Australia, Canada, the Bill & Melinda Gates Foundation, Germany, Ireland, Korea, Spain, UK, and US)

Overview: Provides grant funding directly to sovereign governments in accordance with country’s macro strategy. Launched 2010

Private Sector Window

Managed by: IFC

Funding: US$356 Million

Donors: 6 donors (Netherlands, Canada, Japan, UK, US, Australia)

Overview: Provides investment and advisory services to eligible private sector companies in agribusiness, in conjunction with IFC’s investments. Re-Launched in 2012.

GAFSP is a multilateral mechanism designed to assist in the implementation of

pledges made by the G-20 governments to help the world’s poorest countries

reduce poverty and improve rural livelihoods and food security.

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Objectives of GAFSP

Support Climate Smart Agri solutions

Increase productivity through gains in yields and adopting innovative

technology

Support inclusive business - linking farmers to market and gender focus

Improve access to finance and reduce risks in agriculture

GAFSP aims to address food security in the lowest income countries by improving the livelihoods

of SME and smallholder farmers through sustainable solutions that:

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Delegated Investment Authority to IFC (IDA-only Countries)

Africa

• Benin

• Burkina Faso

• Burundi

• CAR

• Chad

• Comoros

• Cote d’Ivoire

• DRC

• Eritrea

• Ethiopia

• Gambia

• Ghana

• Guinea

• Guinea-Bissau

• Kenya

• Lesotho

• Liberia

• Madagascar

• Malawi

• Mali

• Mauritania

• Mozambique

• Niger

• Rwanda

• Sao Tome & Pr.

• Senegal

• Sierra Leone

• Somalia

• South Sudan

• Tanzania

• Togo

• Uganda

• Zambia

East Asia

• Cambodia

• Kiribati

• Laos PDR

• Marshall Islands

• Micronesia, FS

• Myanmar

• Samoa

• Solomon Islands

• Tonga

• Tuvalu

• Vanuatu

ECA

• Kosovo

• Kyrgyz Rep.

• Tajikistan

Latin America

• Guyana

• Haiti

• Honduras

• Nicaragua

MENA

• Djibouti • Yemen

South Asia

• Afghanistan

• Bangladesh

• Bhutan

• Maldives

• Nepal

By Approval of GAFSP Donor Committee (IDA-blend Countries)

Africa

• Cameroon

• Cape Verde

• Congo, Republic

• Nigeria

• Zimbabwe

East Asia

• Mongolia

• Papua New Guinea

• Timor Leste

• Vietnam

ECA

Latin America

• Bolivia

• Dominica

• Grenada

• St. Lucia

• St. Vincent

South Asia

• Pakistan • Sri Lanka

• Moldova • Uzbekistan

Countries Eligible for GAFSP Funding Support (FY16 List)

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• Should be projects that both the client and IFC could not do without support

• Used to “de-risk” projects for the market

• Targeted to risks that are appropriate for private sector to bear (not risks that ought to

be assumed by the public sector)

Moves Beyond IFC Additionality

• Minimum concessionality: Provide minimum “subsidy element” in financing to

enable greater probability for sustainability & market transformation; minimizes over

subsidizing

• Maximizing leverage of private sector; ensure private risks born by private sector

• Incentives for project sponsor aligned with impact performance

Avoids Market Distortion

• Time-bound: should not be applied where long term subsidies are required; subsidy

is limited in time (e.g.: 5-8 years) but offered until market/track record is established;

subsidy should be limited to demonstration/decline over time

• Targeted approach for specific barriers (risk and cost) inhibiting investment

• Link with Advisory Services: Broaden impact and achieve market transformation

Leads to Sustainability

• Cost effectiveness to achieve development impact

• Governance: deploy concession funding with the highest standard of care, and with

governance structure which manages inherent conflicts of interest in funding

structuring and decision making

Upholds Transparency

IFC Principles for Deploying Blended Finance

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GAFSP Private Sector Window Program

Results to Date

(April 2012 – September 2016)

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GAFSP Private Sector Window

Global Map as of Sep 2016

africaJUICE

Juice Processing

Ethiopia

Malawi Mangoes

Juice Processing

Malawi

Pearl Dairy

Dairy Processing

Uganda

Probiotech

Poultry Feed

Nepal

Root Capital

Agri Finance NBFI

Global

Pran

Food Processing

Bangladesh

Warehouse Finance

Mali

BICIS RSF

Warehouse Finance

Senegal

SIB RSF

Agri Finance

Cote d‘IvoireFDL

Micro Finance Inst.

Nicaragua

CRDB

Warehouse Finance

TanzaniaRoya Renovation

Coffee Replanting

Nicaragua

GAFSP Investment projects

supported by Advisory services

Nedbank

Warehouse Finance

South Africa

Wienco Liberia

Liberia

Acleda

Cambodia, Myanmar

Rubber Renovation

Liberia

Farmer Financing

Rwanda

Cameroon WB/IFC

Meridian

Agri Inputs

Malawi

Sofitex

Warehouse Finance

Burkina Faso

Tiviksi Dairy

Mauritania

Ethiopian Coffee

Ethiopia

MHV

Bhutan

KTDA

Kenya

Fertiplant

Kenya

Balton CP

Kenya

SMTP

Madagascar

Insta

Kenya

Barry Callebaut

Cote D’lvoire

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Status of GAFSP Investment Portfolio as of Sep 2016

• 36 GAFSP projects have been approved for total amount of US$186 million in 21 countries

• 33 GAFSP projects have been committed for a total amount of US$164 million

• 18 GAFSP projects have been disbursed for a total amount of US$117 million*

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* Excluding RSF

Note: Charts based on the committed exposure

Senior loan37%

Risk Sharing Facility

32%

Subordinated Loan19%

Quasi Equity4%

Common Shares

3%

Preferred Shares

2% Senior loan (Local Curr)2% Credit Line

1%

Burkina Faso21%

Cambodia12%

Kenya 10%Africa

8%

Rwanda7%

Tanzania6%

Nicaragua5%

Bhutan4%

Bangladesh3%

Malawi3%

Mauritania3%

Mali3% Ethiopia

3%

Uganda2%

Liberia2%

Myanmar2%

Senegal2%

Cote D'Ivoire2%

Cameroon1% Nepal

1%

Madagascar1%

Africa76%

East Asia14%

Latin America5%

South Asia5%

Through FI

65%

Direct Investme

nt35%

By Product By Region

By CountryThrough Financial Intermediary

Status of GAFSP Advisory Portfolio as of Sep 2016

• 34 Active GAFSP AS projects have been approved for total amount of US$8.2 million in 24 countries

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$5,544,592, 68%

$391,000, 5%

$767,146, 9%

$106,500, 1%

$800,900, 10%$602,576, 7%

By Region(US$ volume)

Africa

South Asia

Latin America

East Asia

Middle East

Global

$768,630, 9%

$2,230,186, 27%

$3,425,310, 42%

$1,076,012, 13%

$712,576, 9%

By Thematic Area(US$ volume)

Access to Finance

Ag. Prod. Clim. Res

Farmers 2 Mkt

New Technology

Other

$6,324,376, 77%

$1,511,562, 18%

$251,000, 3%$125,776, 2%

By Activity(US$ volume)

AS Project

Diagnostic

M&E/Learning

Bus. Dev. Events

Note: Charts based on the committed exposure

GAFSP Private Sector Window Target to Reach More Than

Three Million Farmers

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GAFSP PrSW investments focus on high development impact through both financial investment

support and advisory projects that build capacity and provide training and tools. In total we target

to reach over 3.3 million farmers, most of them semi-commercial smallholders and subsistence

farmers with less than 2 ha of farm land.

GAFSP Leveraging Five Times of Private Investment

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The concessional funding from GAFSP, combined with the flexibility of GAFSP’s features, help the

project mobilize and leverage more private sector investment from IFC and other global and local

investors. Since the inception of GAFSP PrSW in 2012, for every GAFSP dollar invested into the

project it attracted on average $1.7 from IFC and $3.1 from other DFI/private investment.

Blended Finance Solutions

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Concessionality of GAFSP Investment Projects (1/2)

Country Product Front-Ended

Disb.

Subordin. in

Repaym.

Subordination

in Liquidation

2nd Ranking

Security/unsecured

Pricing

Differential

Subsidy

(% of total project size)

PRAN Bangladesh Sr Loan none

GWFP CRDB Tanzania Sr Loan $0.20m (0.6%)

Root Capital Global Sr Loan $1.16m (11.5%)

Tiviski Mauritania A Loan $0.24m (2.1%)

Malawi Mangoes Malawi 2nd Lien Loan $1.1m (10.9%)

GWFP Nedbank Africa 15% FL $0.97m (1.0%)

SIB Côte d’Ivoire 25% FL $0.49m (1.2%)

FDL Nicaragua Nicaragua Sub Loan $0.30m (3.8%)

Pearl Dairy Uganda Sub Loan $0.82m (5.4%)

GWFP Mali Cotton Mali Guarantee $0.05m (0.6%)

Africa JUICE Ethiopia Pref. Eq $0.93m (5.9%)

Probiotech Nepal Str. Eq $0.59m (7.6%)

Roya Renovation Nicaragua Guarantee $3.3m (12.2%)

GWFP BICIS Senegal 30% FL $0.84m (2.1%)

Acleda MFI Cambodia Sr Loan $0.2m (0.18%)

Acleda MFI Myanmar Sr Loan $0.46m (7.7%)

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Concessionality of GAFSP Investment Projects (2/2)

Country Product Front-Ended

Disb.

Subordin. in

Repaym.

Subordination

in Liquidation

2nd Ranking

Security/unsecured

Pricing

Differential

Subsidy

(% of total project size)

Meridian Mozambique,

MalawiSub Loan $0.76m (3.8%)

GWFP Burkina

FasoBurkina Faso Sub Loan $0.13m (0.4%)

AIFL Rwanda

Farmer FinancingRwanda

Credit line &

Guarantee $0.64m (6.1%)

DSM ETG RwandaSr Loan

& Str.eq $0.77m (1.3%)

Ethiopia Coffee

RSFEthiopia Guarantee $0.16m (1.1%)

Cameroon –

BICECCameroon Guarantee $0.68m (13.6%)

Cameroon –

SocGenEthiopia Guarantee $0.68m (13.6%)

SMTP Madagascar Sub Loan $1.1m (16.2%)

Fertiplant Kenya Sub Loan $0.47m (2%)

MHV Bhutanpreferred

shares $0.8m ( 3.8%)

Balton Kenya Sub Loan $0.28m (1.9%)

Wienco Liberia Liberia Sub Loan $0.28m (5.7%)

Insta Kenya Sr Loan $0.37m (2.7%)

Barry Callebaut Cote D'Ivore Guarantee $0.27m (13.3%)

SIB Cargill RSF Cote D'Ivore Guarantee $0.76m (2.5%)

KTDA- Small

Hydro Kenya Sr Loan $1.1m (1.3%)

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