The Africa Agriculture and Trade Investment Fund (AATIF) is an innovative public-private partnership dedicated to uplift Africa’s agricultural potential for the benefit of the poor.
The Fund aims at improving food security and providing additional employment and income to farmers, entrepreneurs and labourers alike by investing patiently and responsibly in efficient local value chains.
Requirements / Africa Agriculture And Trade Investment Fund
Using the online funding application you can submit one or more investment opportunities for the Investment Manager to review. You will have to fill out a questionnaire and will then have the chance to upload supporting documents. To allow for an initial review of your project we will require the following documents to be submitted:
- Business Plan – kindly refer to the Business Plan Template or guidance on content!
- Audited Financial Statements for the past three years (if available)
- An Environmental and Social Impact Assessment (ESIA) or any other document providing further information on the social and environmental impact of your project
Eligibility / Africa Agriculture And Trade Investment Fund
The AATIF focuses on investments into the agricultural sector. It targets small, medium and large scale agricultural farms as well as agricultural businesses along the entire agricultural value chain which will be financed directly or indirectly. Direct Investments comprise among others cooperatives, commercial farms, processing companies while Indirect Investments relate to investments into local financial institutions or other intermediaries (such as large agribusinesses) which on-lend to the agricultural sector, to fund e.g. smallholders or small and medium enterprises.
In pursuing its investment strategy, the Investment Manager will strive to continuously cooperate with established input providers and off-takers already involved in the agricultural value chain as well as with risk insurers to enhance the viability of the investment.
To be eligible for AATIF financing the investments should meet the following criteria
- The principal balance of the AATIF loan should be higher than USD5m (can be USD 3.5mn if business model shows clear growth potential in the short / medium term)
- The equity to total assets ratio post the AATIF investment is greater than ~30%
- The investee has exceeded the planning stage and is already operational
- The investee has an experienced management team on the ground
- The investee is either already profitable (min. EBITDA positive) or has a very strong sponsor / shareholder backing it.
Investment Modules Process / Africa Agriculture And Trade Investment Fund
1. Direct Investee Company:The company/project entertains direct activities in the agricultural sector in one or more African countries related to input provision, farming, processing and/or sales and trading.
2.Intermediary Investee Company: The company/project is a large agribusiness that acts as off-taker, service provider and/or credit provider for smallholders or local small and medium enterprises in the African agriculture sector.
3.Financial Institution: The company is a financial institution (e.g. commercial bank, micro finance institution, saving and credit cooperative) providing financing to the African agriculture sector.