geoffrey manley -afdb
TRANSCRIPT
Finance for sustainable
agribusiness in Africa
Geoffrey Manley
Private Sector Operations Department
African Development Bank
Outline
• ADB approach to agribusiness finance
• Project examples:
– Debt
– Equity
• Concluding thoughts
ADB’s 3 levers for agribusiness
Catalytic Transactions
Enabling Environment
Analysis & Strategy
ADB support can be direct or indirectD
ire
ct
•Corporate
•Structured
•Guarantees
•Subordinated
debt
•Trust
funds
Ind
ire
ct
Technical
Assistance
•PE funds
•Local FIs
MSME
Support
•PE funds
•Local FIs
•Commercial
projects
Senior
Lending
•Local FIs
•Loan funds
Equity/quasi-
equity
•PE Funds
Markala Sugar leverages a PPP approach
Private Sector Senior Loan:
• Sugar mill
• Ethanol distillery
• Electricity co-gen plant
Public Sector Soft Loan:
• 14,000 ha irrigated cane
• 2,250 ha rice/vegetables
• Social infrastructure
Lake Harvest is betting on regional markets
• Expansion of African middle class
• Southern Africa: Unmet demand
for affordable fish = 100,000 tons
• Lake Harvest will expand • Lake Harvest will expand
production from 2,500 tpa to
20,000 tpa of which 85%+ for
AAF is a partnership for food security
African African
Agricultural
Fund
SMEs Large Scale
Technical
Assistance
Facility
Agvance will catalyze 250 investments
Agvance
Africa
Technical
Assistance
Facility
Donors3ADI
PartnersDFIs
Institutional
InvestorsAfrica
Ag Fund
Ag CoAg CoAg Co
Ag Fund
Ag CoAg CoAg Co
Ag Fund
Ag CoAg CoAg Co
Ag Fund
Ag CoAg CoAg Co
Facility
Concluding thoughts
• The ADB is placing renewed emphasis on the
agribusiness sector
– Public sector and private sector finance
– Direct and indirect instruments
• Project examples show that instruments can be
structured to meet diverse needs
• Partnership is essential
Thank you
Geoffrey Manley
Chief Investment Officer – Agribusiness & Agroenergy
Private Sector Operations Department
African Development Bank
Email: [email protected]