AgDevCo Ghana
Manuel Bueno
December 2014
AGDEVCO IS A NOT-FOR-PROFIT AGRICULTURAL DEVELOPMENT FUND
Our Approach
 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
Ghana (2012): USD 15m fund; developing two large
greenfield farms
Tanzania (2012): Five investments,
expanding pipeline and local presence
Malawi (2013): USD 15m catalytic
fund for investment in 10-15 SMEs;
Zambia (2013): USD 15m catalytic
fund for investment in 10-15 SMEs;
Developing 2-3 PPP irrigation projects
Mozambique (2010): Management of USD 23m BAGC
catalytic fund
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IN GHANA, AGDEVCO IS UNDERTAKING A FOUR DISTINCT ACTIVITIES, ALL AIMING TO
SUPPORT THE COMMERCIALISATION OF THE AGRICULTURE SECTOR
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SME investments
2
“Large”
investments
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 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
Project
development
 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
Crop
demonstrations
 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.
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THANK YOU
Manuel Bueno
Ghana Investment Manager
[email protected]
AgDevCo Ghana
235A Soula Loop, Labone
P.O. Box CT 8889,
Cantonments
Accra-Ghana
+233 302 968980
www.agdevco.com