AgDevCo Ghana

Manuel BuenoDecember 2014

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Our Approach

AGDEVCO IS A NOT-FOR-PROFIT AGRICULTURAL DEVELOPMENT FUND

Mozambique (2010): Management of USD 23m BAGC catalytic fund

Zambia (2013): USD 15m catalytic fund for investment in 10-15 SMEs; Developing 2-3 PPP irrigation projects

Ghana (2012): USD 15m fund; developing two large greenfield farms

Malawi (2013): USD 15m catalytic fund for investment in 10-15 SMEs;

Tanzania (2012): Five investments, expanding pipeline and local presence

AgDevCo builds and finances agricultural businesses that are commercially viable and beneficial to the local agricultural economy

Our businesses include small-scale and emergent local farmers, input suppliers and processors and storage providers

We aim to make a ~10% USD return on our investments

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IN GHANA, AGDEVCO IS UNDERTAKING A FOUR DISTINCT ACTIVITIES, ALL AIMING TO SUPPORT THE COMMERCIALISATION OF THE AGRICULTURE SECTOR

SME investments

“Large” investments

Crop demonstrations

Project development

Investing in agribusinesses which are located in the three northern regions (or which support production in those regions)

Deploying long-term debt or equity, USD 500,000-1,000,000 per business with low cost of capital

USD 15 million to invest over three years in 10-15 businesses

Investing in established businesses which provide services to large numbers of small scale producers

Deploying long-term debt or equity, USD 1,000,000+ per business with low cost of capital

Flexible core funding available

Developing two large (4,000-8,000 ha) greenfield irrigated farms under a nucleus/outgrower model

Responsible for land consultation, technical studies and for proving commercial viability USD 4 million of secured funding to cover project development expenditure

Testing seed varieties which are new to Ghana at four demonstration sites Aiming to prove maximum yield potential under commercial conditions Communicating results widely to farmers, buyers and others

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HOW CAN WE WORK TOGETHER?

What does AgDevCo Ghana offer?• AgDevCo Ghana provides long term loans (3-8 years) typically around $500,000-$2,000,000 in 1-4

disbursements. • These loans are in USD at a 10% USD interest rate. • AgDevCo structures each loan in order to adjust to the company’s cash flow, and may consider grace period on

principal investment. AgDevCo can also provide some working capital financing to support the long term loan.

What companies is AgDevCo looking for?• AgDevCo is looking for commercially viable local businesses with strong social impact and who are excited to

work closely with us. • These businesses need to have a proven business model (ideally already at break-even) which they are

searching to scale up with our funding. • AgDevCo partners closely with businesses to enhance core business areas such as agronomy best practices,

financial management, corporate governance, operations and supply chain, and environmental and social impact.

AgDevCo Due Diligence process• Given the comparatively high risk of AgDevCo’s investments and our search for good partners, our Due

Diligence is extensive and usually takes 4-6 months, depending on the information available from the potential borrower.

• Due Diligence covers the following aspects: a) senior management and shareholders; b) market analysis and competition; c) company operations and supply chain; d) financial analysis and projections; e) legal due diligence; f) proposed project analysis; and g) environmental and social impact.

THANK YOU

Manuel BuenoGhana Investment Managermbuenovera@agdevco.com

AgDevCo Ghana235A Soula Loop, LaboneP.O. Box CT 8889, CantonmentsAccra-Ghana+233 302 968980

www.agdevco.com