Africa Agriculture And Trade Investment Fund Application

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

Also Read & Apply: African Development Bank ($1.5 Million) Agribusiness Grant

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.

Also Read & Apply: Nigerian Agricultural Loans & Grants / How to Apply

Investment Modules Process / Africa Agriculture And Trade Investment Fund

Module 1 – Initial screening: The Investment Manager will conduct a first assessment of the eligibility of the investment (Direct Investment, Financial Institution or Intermediary as the case maybe) and the overall portfolio fit. If the outcome of the first screening is positive the Investment Manager will start the due diligence process.

Module 2 – Due Diligence: For the due diligence process further investment information, such as, comprehensive investment description and technical details are required. Upon being provided with the required information the Investment Manager will assess the investment’s financial, technical and legal specifications and analyze whether the Fund’s environmental, social and developmental objectives could be met. Typically, the Compliance Advisor will join the Investment Manager for the on-site due diligence in order to review the potential investment for compliance with social and environmental standards. If necessary, the Investment Manager will collaborate with the management team of the investment to discuss and advise on different feasible financing structures for the investment.

In parallel the Investment Manager will initiate a client adoption process aiming to ensure that AATIF complies with legal obligations to prevent itself and its clients from being involved in money laundering, terrorist financing or other illegal activities.

Module 3 – Preparation of Investment Committee decision and financial closing: Subject to a successful outcome of the due diligence, the Investment Manager will prepare a comprehensive Investment Proposal which shall present the economic, social and environmental case for entering into the investment while also referencing the outcomes of the Compliance Advisor’s review. Such proposal is to be presented to the Investment Committee for approval.

If approved, the Investment Manager will prepare, negotiate and execute the legal documentation which will typically include financial, social and environmental covenants and reporting requirements.

Further to preparing the financial closing, the Investment Manager will discuss any potential need for technical assistance with the Technical Assistance Facility Manager, who in turn may take the case to the Technical Assistance Facility Committee for approval of measures ranging from training to support in establishing proper social and environmental safeguards.

Module 4 – Monitoring and reporting: The Investment Manager will monitor the Investment’s compliance with terms and conditions agreed upon prior to the investment. This includes regular (quarterly and annual) review of financial, social and environmental performance.

How to Apply / Africa Agriculture And Trade Investment Fund

interested persons should click to apply under any of the category below.

Investee Company Type / 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.

Click to apply as a direct Investee Company

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.

Click to Apply as Intermediary Investee Company

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.

Click to Apply financial institution

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