1. Building profitable agribusiness in SSA
Daniel Hulls, CEO
15th March 2017

2. Agribusiness creation and development
Invest and develop early stage farming and agri- processing businesses
Long-term debt and equity, from US$250,000 to US$10 million.
Hands on TA / Business support to bring to profitability
Presence in 8 countries in Sub-Saharan Africa
Investing to de-risk and create additional investment opportunity 55
NUMBER OF INVESTMENTS
$90M
COMMITTED INVESTMENTS
160,000
FARMERS linked TO MARKETS
4,500
sustainable JOBS Created
ENHANCING FOOD SECURITY
IMPROVED COMMUNITIES
Not for profit, but commercial investment capability deploying UK AID
Introduction to AgDevCo

3. $2m investment in maize trading and milling business in Mozambique
So at the mid-point of 2014, we are now one of the most active investors in SME agribusinesses in Sub-Saharan Africa – with real investments and real activity on the ground in each of the countries that we operate in. We are shortly to start investing in Uganda too.
Average investment size is $1m. This has increased since we started – and is an interesting lesson. In our earlier years we were more inclined to invest sub-$250,000. We still do this – particularly as a way of testing out an investee relationship. But given the costs and time, have definitely sought to balance our portfolio with investments towards the upper end of our range
At the same time, we are increasingly looking to use our catalytic funds to make investments with partners who are focused on providing finance to Emergent farmers/ agribusinesses entrepreneurs – e.g. through asset-backed / leasing finance.
One point to note is that there is a lag between committing investments, drawdown and achievement of impact.

4. Developing portfolio….
$10m investment in 3,000 ha irrigated rice farm in Tanzania
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5. $2m investment procurement and storage business in Zambia
So at the mid-point of 2014, we are now one of the most active investors in SME agribusinesses in Sub-Saharan Africa – with real investments and real activity on the ground in each of the countries that we operate in. We are shortly to start investing in Uganda too.
Average investment size is $1m. This has increased since we started – and is an interesting lesson. In our earlier years we were more inclined to invest sub-$250,000. We still do this – particularly as a way of testing out an investee relationship. But given the costs and time, have definitely sought to balance our portfolio with investments towards the upper end of our range
At the same time, we are increasingly looking to use our catalytic funds to make investments with partners who are focused on providing finance to Emergent farmers/ agribusinesses entrepreneurs – e.g. through asset-backed / leasing finance.
One point to note is that there is a lag between committing investments, drawdown and achievement of impact.
$2m investment procurement and storage business in Zambia

6. $4m with Westfalia in greenfield avocados in Mozambique
So at the mid-point of 2014, we are now one of the most active investors in SME agribusinesses in Sub-Saharan Africa – with real investments and real activity on the ground in each of the countries that we operate in. We are shortly to start investing in Uganda too.
Average investment size is $1m. This has increased since we started – and is an interesting lesson. In our earlier years we were more inclined to invest sub-$250,000. We still do this – particularly as a way of testing out an investee relationship. But given the costs and time, have definitely sought to balance our portfolio with investments towards the upper end of our range
At the same time, we are increasingly looking to use our catalytic funds to make investments with partners who are focused on providing finance to Emergent farmers/ agribusinesses entrepreneurs – e.g. through asset-backed / leasing finance.
One point to note is that there is a lag between committing investments, drawdown and achievement of impact.
$4m with Westfalia in greenfield avocados in Mozambique
Photo: NWK Grain Handlers

7. $2m investment in co-operative sugar outgrower business supplying Illovo
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8. Outgrowers with access to market and modern inputs can prosper
$450k investment in co-operative sugar outgrower business supplying Illovo
Outgrowers with access to market and modern inputs can prosper
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9. Key lessons
Very few investments that meet standard PE requirements. Have to be prepared to be in very early; and work hard alongside entrepreneur.
Investing green and brownfield – have to be prepared to invest in supporting infrastructure
Keep overhead low and in line with cashflow.
For high-value crops; need to be prepared to invest long-term (min.4-5 years) before real cash flow.
Land issues need to be dealt with sensitively and in the interest of the community.
Commercial v small-scale is a false distinction.
Daniel Hulls (CEO)
Key Lessons