Innovare & L3 Consortium; Leveraging Leasing for Livelihoods September 2015

Transforming African Agriculture through Mechanization “Feed Africa and the world through a strategy of transformative partnerships to overcome multiple challenges confronting African farmers” Challenges: Poor & degraded soils Limited choice of productivity enhancing inputs at affordable prices Unreliable water supplies Poor market access Lack of funding Little Government support Lack of mechanization  

Ag SME Processing Equipment Finance Innovare & L3: Filling a Market Gap With Innovative Finance Increase Smallholder Production/ Reduce Losses Banks Ag Processing Equipment SME Finance MFIs Food Security

L3 IFM PROBLEM: Mechanization for Smallholder Farmers SOLUTION: Improving Food Security in Africa requires… L3 Inefficient Agricultural Methods & Lack of Resources PROBLEM: Mechanization for Smallholder Farmers SOLUTION: IFM PROBLEM: Inefficient Processing Methods & Postharvest Losses Better Processing Equipment for SMEs SOLUTION:

Innovare Lease Financing Facility Provides alternative lease financing to agribusinesses which have difficulty accessing capital Addresses a development need for smallholder farmers to increase local production Creates a demand-pull link for smallholder farmers by leasing appropriate mechanization to smallholder farmers, farmer organizations and agribusinesses.

Innovare Lease Financing Facility: How it works

Unleashing the Potential of the African Smallholder Farmer Improving the livelihoods of SHFs New SME opportunities in communities Increased food security for a continent

Agricultural Value Chain: M K T s k t Input Supplies On Farm Operations Post Harvest Processing Food Production and Packaging Markets: Export National Regional Local Increasing $$$ Value Agricultural Value Chain: Agribusiness Financing Opportunities

Agricultural Value Chains   Input Suppliers On Farm Operations Post- Harvest Processing Food Production/ Packaging Storage & Logistics Storage X Transport Specialty Equipment Irrigation Refrigeration Extruders Packaging Off-grid power Financial Services Leasing Factoring Working Capital Marketing & Distribution Generic Value Chain Dairy Value Chain Meat and Poultry Value Chain(s) Fruits, Vegetables and Grains Value Chain(s)

Leasing Leveraging Livelihoods; L3 Consortium An integrated Partnership for Transformation of African Agriculture Through Mechanization Innovare Advisors: An innovative investment management company focused on food and agriculture. Mission: Facilitate capital to credit worthy Farmer Organizations and SMEs working in food and fiber value chains in emerging and frontier markets Centum Learning: Global training and learning solution company; operating in 20 African countries. Mission: Support clients including farmers organizations and SMEs engaged in agriculture value chain business Post-Harvest Technologies: A professional advisory and technical solutions firm focused on providing appropriate technology solutions and mechanization to improve smallholder profitability. Mission: achieve scalable impacts through selection and support of ag technologies

The L3 Consortium Objectives Engage smallholder farmers, farmer organizations and agribusiness SMEs to determine the optimal mechanization equipment and complementary technologies to increase production and incomes; Design, test and implement lease financing facilities to help make equipment affordable by providing the ability to pay over time through the increased revenue generated by the leased equipment; Design, test and implement mechanization capacity building and training programs along the entire agricultural value chain; Develop impact and outcome assessments to guide the integrated operation and all the components, and to improve management and ensure goals and objectives are met.  

L3 Partnerships: AUC/AGRA - Transformation of African Agriculture through Mechanisation(TAAM) Integrate ag development with mechanisation Six target countries strategically selected Selected crops & value chains for each country Private sector led; take to scale across Africa AAIN/Unibrain – Agribusiness Incubation Pan African in scope; Pilot in selected countries Mechanization solutions for specific value chains Joint Development and Fund Raising African Fertilizer and Agribusiness Partnerships (AFAP) Focus on equipment needs of SME HUB/Dealers Lease Financing: Fertiliser blending, Seed processing and storage  

Partnerships with Vendors in Multiple Agricultural Value Chains Tractors Fertilizer Blending Milk Chillers Grain Processing/ Storage Food Production Weighing and Packaging

New Products + New Geographies = Scale

Summary and Conclusion African Union/ AGRA Mission:  Transform African Ag Increase production Eliminate hunger; reduce poverty Build value chains for economic impact Ag mechanisation with lease financing as key component L3 Consortium -- Implementing Partner for Mechanisation Integrated Approach Technical expertise Lease financing Training Private Sector Participation: Equipment and Technologies Investment Expertise for Scaling Across Africa

For Further Information: John Riggan Riggan.John@gmail.com US 215.842.9272 Mary Jane Potter MaryJane.Potter@InnovareAdvisors.com US 203.444.5854 www.InnovareAdvisors.com

Smallholder Farmer Impacts, Metrics & Outcomes; Multiple Frameworks which incorporate “best practices” L3 SHF Framework Council on Smallholder Agricultural Finance (CSAF) Global Development Incubator Rainforest Alliance GIIN/Iris   IFM, SME-focused model Framework  Aspen Network of Development Entrepreneurs with a focus on SGBs, Small & Growing Businesses Earned Revenue Taxes Gross Profit EBITDA Employee earnings, wages and commissions Units/Volume Sold New Businesses Created

Improving SHF Prosperity & Environmental Stewardship

Initiative for Smallholder Finance: Theory of Change