1. Financial Mechanism in support of African Agribusiness and Agro- industries Initiative (3ADI)

2. Structure Focus along the segments of the agribusiness value chain Cluster of funds –Geographic region, segmented –For instance, one fund to target SMEs and micro-finance; one to target large agribusinesses –Each fund will include equity and guarantee/risk sharing components Each fund will be managed by a professional fund manager Role of DFIs, commercial banks and governments is to ensure that these funds are capitalized adequately at each closing and defining investment criteria In addition to the proposed private sector facility, a framework for funding support to governments is being proposed on a bilateral basis

3. Implementation 20% ($0.3 bn) will be equity 80% ($1.2 bn) will be guarantee fund 10% guarantee for first loss With a multiplier of 10 times: $12 bn 2 cycles of 18 months over three years $24 bn over three years Half of the capital ($750m) would be sought from DFIs, countries and other partners; half would be raised by the individual fund managers Bidding process to select fund managers Transparent Ability to raise capital for funds Ability to define criteria for fund manager to meet Oversight through Advisory Board This structure can be replicated at all levels, including national Advantages Size: $1.5 billion

4. Timeline Subject to approval of this proposal, a task force of seven members will be set up to build the business plan Business plan will define criteria for regional funds Internal approvals for seed capital Target: launch first bidding in 9 months Pilot program – after process of monitoring, envisaged that a larger (circa $5 billion) facility will be set up

5. THANK YOU! For more information and follow-up, please check WWW.HLCD-3A.ORG 3ADI