SlideShare a Scribd company logo
1 of 26
Download to read offline
CUTTING EDGE AGRICULTURAL DEVELOPMENT THROUGH
PUBLIC PRIVATE PARTNERSHIP FINANCE MODELS
----------------------------------------------------------------------
Including experiences of Mphiwe Siyalima Enterprises in
South Africa, a small to medium size farming corporation.
Gift Mafuleka
BTech: Agriculture: TUT
Foum for Agricultural Research in Africa
6th Africa Agricultural Science Week,
ACCRA, GHANA
15-20 July 2013
OUTLINE
1. Background: Agricultural Development in Africa
2. Introduction: Agricultural Financing in Africa
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Industry Level Value Chain Financing
6. Risks Management
7. Conclusion
BACKGROUND: AGRICULTURAL DEVELOPMENT IN AFRICA
19th Century
• Agricultural Extension Services
• Agricultural Co-operatives
• International Donor Funding –Supply Driven
20th Century
• Agricultural Value Chains
• Agricultural Technology
• International Donor Funding –Market Driven
1. Background: Agricultural Development in Africa
2. Introduction: Agricultural Financing in Africa
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Industry Level Value Chain Financing
6. Risks Management
7. Conclusion
INTRODUCTION: AGRICULTURAL FINANCING
• The Future and the Past co-exist in the Present
• Subsistence and Smallholder farming versus
modern, high tech, integrated value chains
operating globally.
• New global competition – manufactured
competitiveness (value chains) versus old natural
/comparative advantages or competitive
advantages
INTRODUCTION: AGRICULTURAL FINANCING (Cont.)
• “What are we as Africa doing to ensure that we
champion and pioneer development successes in
food value chains across geographical spheres?”
INTRODUCTION: AGRICULTURAL FINANCING (Cont.)
Financial
Analysis
Socio-economic
contribution
Job creations and
Skills Development
Real Impact
INTRODUCTION: AGRICULTURAL FINANCING (Cont.)
Financial
Analysis
Socio-economic
contribution
Job creations and
Skills Development
Real ImpactBefore After
1. Background: Agricultural Development in Africa
2. Introduction: Agricultural Financing in Africa
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Industry Level Value Chain Financing
6. Risks Management
7. Conclusion
CHALLENGES
• Lack of self-driven agripreneurs – Entrepreneur
• Disintegrated or lack of relevant training - Management
• Unfavourable land tenure systems – Land
• Lack of cognitively restructured financing - Capital
1. Background: Agricultural Development in Africa
2. Introduction: Agricultural Financing in Africa
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Industry Level Value Chain Financing
6. Risks Management
7. Conclusion
ENTERPRISE FINANCE MODEL
12
Input&Equipment
FarmingExpertise
Land&Infrastructure
Transport&Markets
Real Impact on Enterprise Development
Public Private Partnerships
MPHIWE SIYALIMA ENTERPRISES
MPHIWE SIYALIMA 2013-14
Grain
Production
600ha
Maize
500ha
Soybeans
100ha
Vegetables
Production
35 ha
Cabbage
20ha
GreenMaize
30ha
McCain
Production
60ha
Peas60ha
(winter)
Semi-intensive
Beef Production
200LSU/200ha
STUDBreeding
100LSU
Preconditioning&
Weaner
Production
CommercialBeef
Production
50LSU
13
EXPENDITURE 2010/11
Infrastructure
Expenditure,
1 212 592.00,
29%
Farm Production,
1 133 148.00,
27%
Overhead
Expenses,
1 077 000.00,
26%
Cattle ,
403 000.00,
10%
Moveable Assets
Expenditure,
356 560.00,
8%
Infrastructure Expenditure
Farm Production
Overhead Expenses
Cattle
Moveable Assets Expenditure
EXPENDITURE 2012/13
Infrastructure
Expenditure,
550 000.00, 5%
Farm Production,
6 500 000.00, 56%
Overhead
Expenses
1,900,000.00
16%
Cattle ,
850 000.00, 7%
Moveable Assets
Expenditure,
1 856 560.00, 16% Infrastructure Expenditure
Farm Production
Overhead Expenses
Cattle
Moveable Assets Expenditure
15
1. Background: Agricultural Development in Africa
2. Introduction: Agricultural Financing in Africa
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Industry Level Value Chain Financing
6. Risks Management
7. Conclusion
AGRICULTURAL VALUE CHAIN FINANCING
(ENTERPRISE LEVEL)
17
Farmer produces for a
specific off taker
Off-
taker
Contract
Production output
Production input
Contract Farmer
Backgrounder
Feedlot operators
Agro-processors
Exporters
Peas seed delivery Harvesting & deliveryCrop husbandryPlanting of peas
AGRICULTURAL VALUE CHAIN FINANCING
(INDUSRTY LEVEL)
Collateral Guarantee Fund
18
18
Government & Donors
Collateral (50% - 90%
of loan value)
Agricultural
Development Bank
Funding flow
Agricultural Lender
Collateral Guarantee Fund
Fund
administration +
participation
Eligible Lender
With extension services
Credit
Assessment
& loan
Eligible Borrower
Farmer of Agribusiness
Partnerships with public
& private sectors can be
Formal market
Futures, Off-take
agreements, Open etc.
Sales
Formal Markets
AGRICULTURAL VALUE CHAIN RISK
MANAGEMENT MODEL
19
19
OPEN
e.g. Traders, Agro-processors,
Supermarkets, Retailers.
(Spot price)
HEDGING
e.g. Futures Market,
Grain traders - Fixed prices
Farmer
60% of direct costs – Grain crops
Eligible Lender
OFF-TAKE
e.g. Agro-processors, Feedlot,
Exporters - Fixed Prices
20% of direct costs – Grain crops
20% of direct costs - Grain crops
Deliver
Proceeds on saleProceeds less direct input costs
Cessionofaportionof
theproductionoutput
Insurance cover i.r.o.
Quality & Quantity
Insurance wont cover
Bad Farming Practices
Proceeds
(Normally informal markets)
80% of out– Ornamental crops
20% of out– Ornamental crops
1. Background
2. Introduction
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Agricultural Value Chain Financing
6. Risks Management
7. Conclusion
Gift mafuleka :cutting edge agric value chain financing
Weather
RISK MATRIX
22
Low Manageability
Watch Factors
Distracters Tactical Factors
Strategic Drivers
BEE and Land Reform
Regulatory Compliance
Consumer activism
Food safety
Food Security
Cyber crime
Ethical Trade and Social Upliftment
Water Quality
Available Human Capital
Climate Change
Availability of Resources
Value Chain Integration
New Technology
Global Economy
High Impact
Low Impact
High Manageability
Food Inflation
Uncertain monitory, tax and
fiscal policies
Labour Laws
Illegal Trading
Strategic Alliances
Alternative Energy
Data fraud
Political uprising
Globalization
Weather
RISK MATRIX
23
Low Manageability
Watch Factors
Distracters Tactical Factors
Strategic Drivers
BEE and Land Reform
Regulatory Compliance
Consumer activism
Food safety
Food Security
Cyber crime
Ethical Trade and Social Upliftment
Water Quality
Available Human Capital
Climate Change
Availability of Resources
Value Chain Integration
New Technology
Global Economy
High Impact
Low Impact
High Manageability
Food Inflation
Uncertain monitory, tax and
fiscal policies
Labour Laws
Illegal Trading
Strategic Alliances
Alternative Energy
Tea
Coffee
Dairy
Livestock
Fishing
Rice and Maize
AgribusinessesPiggery
Data fraud
Political uprising
Globalization
Weather
RISK MATRIX
24
Low Manageability
Watch Factors
Distracters Tactical Factors
Strategic Drivers
BEE and Land Reform
Regulatory Compliance
Consumer activism
Food safety
Food Security
Cyber crime
Ethical Trade and Social Upliftment
Water Quality
Available Human Capital
Climate Change
Availability of Resources
Value Chain Integration
New Technology
Global Economy
High Impact
Low Impact
High Manageability
Food Inflation
Uncertain monitory, tax and
fiscal policies
Labour Laws
Illegal Trading
Strategic Alliances
Alternative Energy
Tea
Coffee
Dairy
Livestock
Fishing
Rice and Maize
AgribusinessesPiggery
Data fraud
Political uprising
Globalization
1. Background
2. Introduction
3. Main challenges: The 4 Production Factors
4. Enterprise Level Financing
5. Agricultural Value Chain Financing
6. Risks Management
7. Conclusion
CONCLUSION
• A focus on developing and improving agricultural value
chains will change the image of farming, perceptions by
the bankers, young people and our governments.
• Micro Financiers remain an integral part to smallholder
farmer development in Africa.
• Our skill, experience and drive as farmers is an asset to
our enterprises
• Private Public Partnerships as well as agripreneurship and
technology drive.

More Related Content

What's hot

Wheat Value Chain and Business Environmental Factors in Zimbabwe
Wheat Value Chain and Business Environmental Factors in ZimbabweWheat Value Chain and Business Environmental Factors in Zimbabwe
Wheat Value Chain and Business Environmental Factors in ZimbabweCIMMYT
 
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERS
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERSIMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERS
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERSTi mothy abom
 
What is the Future for Small Farms in Africa and Renewed Role for Farmers?
 What is the Future for Small Farms in Africa and Renewed Role for Farmers?  What is the Future for Small Farms in Africa and Renewed Role for Farmers?
What is the Future for Small Farms in Africa and Renewed Role for Farmers? Pan African Farmers Organization
 
Why has Africa become a Net Food Importer
Why has Africa become a Net Food ImporterWhy has Africa become a Net Food Importer
Why has Africa become a Net Food ImporterDr Lendy Spires
 
Regional Agricultural Policy: What Lessons for Africa’s CAADP from Europe’s C...
Regional Agricultural Policy:What Lessons for Africa’s CAADP from Europe’s C...Regional Agricultural Policy:What Lessons for Africa’s CAADP from Europe’s C...
Regional Agricultural Policy: What Lessons for Africa’s CAADP from Europe’s C...Stephanie van der Walt
 
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...KhazanahResearchInstitute
 
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...Francois Stepman
 
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...Brussels Briefings (brusselsbriefings.net)
 
The roles and opportunities for the private sector in Africa’s agro food indu...
The roles and opportunities for the private sector in Africa’s agro food indu...The roles and opportunities for the private sector in Africa’s agro food indu...
The roles and opportunities for the private sector in Africa’s agro food indu...asafeiran
 
How GVCs are changing the international trade and what policies Nigeria can s...
How GVCs are changing the international trade and what policies Nigeria can s...How GVCs are changing the international trade and what policies Nigeria can s...
How GVCs are changing the international trade and what policies Nigeria can s...Cynthia Onyinyechi Igodo
 

What's hot (19)

Fatma Aglan (World Bank)• 2018 IFPRI Egypt Seminar: “Advancing the Food Syste...
Fatma Aglan (World Bank)• 2018 IFPRI Egypt Seminar: “Advancing the Food Syste...Fatma Aglan (World Bank)• 2018 IFPRI Egypt Seminar: “Advancing the Food Syste...
Fatma Aglan (World Bank)• 2018 IFPRI Egypt Seminar: “Advancing the Food Syste...
 
Wheat Value Chain and Business Environmental Factors in Zimbabwe
Wheat Value Chain and Business Environmental Factors in ZimbabweWheat Value Chain and Business Environmental Factors in Zimbabwe
Wheat Value Chain and Business Environmental Factors in Zimbabwe
 
Brussels Briefing 47: Argent Chuula "New opportunities in regional trade"
Brussels Briefing 47: Argent Chuula "New opportunities in regional trade"Brussels Briefing 47: Argent Chuula "New opportunities in regional trade"
Brussels Briefing 47: Argent Chuula "New opportunities in regional trade"
 
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERS
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERSIMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERS
IMPROVING MARKET ACCESS FOR WOMEN SMALL- HOLDER FARMERS
 
What is the Future for Small Farms in Africa and Renewed Role for Farmers?
 What is the Future for Small Farms in Africa and Renewed Role for Farmers?  What is the Future for Small Farms in Africa and Renewed Role for Farmers?
What is the Future for Small Farms in Africa and Renewed Role for Farmers?
 
Why has Africa become a Net Food Importer
Why has Africa become a Net Food ImporterWhy has Africa become a Net Food Importer
Why has Africa become a Net Food Importer
 
The Wheat Value Chain and Food Security in the Middle East and North Africa
The Wheat Value Chain and Food Security in the Middle East and North AfricaThe Wheat Value Chain and Food Security in the Middle East and North Africa
The Wheat Value Chain and Food Security in the Middle East and North Africa
 
Regional Agricultural Policy: What Lessons for Africa’s CAADP from Europe’s C...
Regional Agricultural Policy:What Lessons for Africa’s CAADP from Europe’s C...Regional Agricultural Policy:What Lessons for Africa’s CAADP from Europe’s C...
Regional Agricultural Policy: What Lessons for Africa’s CAADP from Europe’s C...
 
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...
KRI Brown Bag Seminar #2 - Malaysia : Current Scenario and Way Forward for th...
 
Shifting Governance Structures in the Wheat Value Chain Implications for Food...
Shifting Governance Structures in the Wheat Value Chain Implications for Food...Shifting Governance Structures in the Wheat Value Chain Implications for Food...
Shifting Governance Structures in the Wheat Value Chain Implications for Food...
 
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...
The Role of SMEs in promoting Science, Technology and Innovation in Food Secu...
 
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...
''Recent trends and Outlook in African Agricultural Trade'' by O. Badiane, Di...
 
Dairy Value Chain Rwanda Report
Dairy Value Chain Rwanda ReportDairy Value Chain Rwanda Report
Dairy Value Chain Rwanda Report
 
Dairy Value Chain Uganda Report
Dairy Value Chain Uganda ReportDairy Value Chain Uganda Report
Dairy Value Chain Uganda Report
 
The roles and opportunities for the private sector in Africa’s agro food indu...
The roles and opportunities for the private sector in Africa’s agro food indu...The roles and opportunities for the private sector in Africa’s agro food indu...
The roles and opportunities for the private sector in Africa’s agro food indu...
 
Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt ...
Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt ...Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt ...
Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt ...
 
2015 ReSAKSS Conference – Day 2 - Patrick Kormawa & Afeikhena Jerome
2015 ReSAKSS Conference – Day 2 - Patrick Kormawa & Afeikhena Jerome2015 ReSAKSS Conference – Day 2 - Patrick Kormawa & Afeikhena Jerome
2015 ReSAKSS Conference – Day 2 - Patrick Kormawa & Afeikhena Jerome
 
How GVCs are changing the international trade and what policies Nigeria can s...
How GVCs are changing the international trade and what policies Nigeria can s...How GVCs are changing the international trade and what policies Nigeria can s...
How GVCs are changing the international trade and what policies Nigeria can s...
 
2015 ReSAKSS Conference – Day 2 - Mark Rosegrant
2015 ReSAKSS Conference – Day 2 - Mark Rosegrant2015 ReSAKSS Conference – Day 2 - Mark Rosegrant
2015 ReSAKSS Conference – Day 2 - Mark Rosegrant
 

Viewers also liked

Value chain financing group recommendations summary
Value chain financing group recommendations summaryValue chain financing group recommendations summary
Value chain financing group recommendations summaryMicrofinance Council
 
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...RENETH MANO
 
Update on value chain development theme
Update on value chain development themeUpdate on value chain development theme
Update on value chain development themeILRI
 
Sme clusture processing of coconut kernel and extraction of
Sme clusture processing of coconut kernel and extraction ofSme clusture processing of coconut kernel and extraction of
Sme clusture processing of coconut kernel and extraction ofPankaj Sharma
 
Supply chain management
Supply chain managementSupply chain management
Supply chain managementGoutham Chand
 
Global Value Chain (GVC) Analysis of Mobile Financing Industry in Bangladesh
Global Value Chain (GVC) Analysis of Mobile Financing Industry in BangladeshGlobal Value Chain (GVC) Analysis of Mobile Financing Industry in Bangladesh
Global Value Chain (GVC) Analysis of Mobile Financing Industry in BangladeshMaleeha Tarannum
 
Chilli cultivation, trading process
Chilli  cultivation, trading  processChilli  cultivation, trading  process
Chilli cultivation, trading processkuntalpatra01
 

Viewers also liked (20)

Information, communication and knowledge management in value chain financing...
 Information, communication and knowledge management in value chain financing... Information, communication and knowledge management in value chain financing...
Information, communication and knowledge management in value chain financing...
 
Value chain financing
Value chain financingValue chain financing
Value chain financing
 
Supporting Mechanisms for Agricultural Value Chain Finance
Supporting Mechanisms for Agricultural Value Chain FinanceSupporting Mechanisms for Agricultural Value Chain Finance
Supporting Mechanisms for Agricultural Value Chain Finance
 
Financing fisheries by leveraging the value chain – some structures
Financing fisheries by leveraging the value chain – some structuresFinancing fisheries by leveraging the value chain – some structures
Financing fisheries by leveraging the value chain – some structures
 
Value chain financing ron chua
Value chain financing ron chuaValue chain financing ron chua
Value chain financing ron chua
 
K-REP development agency experience in value chain financing
K-REP development agency experience in value chain financing K-REP development agency experience in value chain financing
K-REP development agency experience in value chain financing
 
Value chain financing group recommendations summary
Value chain financing group recommendations summaryValue chain financing group recommendations summary
Value chain financing group recommendations summary
 
Ethiopia: Capacity Building in Value Chain financing
Ethiopia: Capacity Building in Value Chain financingEthiopia: Capacity Building in Value Chain financing
Ethiopia: Capacity Building in Value Chain financing
 
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...
Horticultural Value Chain Development & Financing Strategies for Zimbabwe's S...
 
Setting Priorities of Regional Agricultural R&D Investments in Africa: Incorp...
Setting Priorities of Regional Agricultural R&D Investments in Africa: Incorp...Setting Priorities of Regional Agricultural R&D Investments in Africa: Incorp...
Setting Priorities of Regional Agricultural R&D Investments in Africa: Incorp...
 
Flows within Fisheries Value Chain Financing
Flows within Fisheries Value Chain FinancingFlows within Fisheries Value Chain Financing
Flows within Fisheries Value Chain Financing
 
Update on value chain development theme
Update on value chain development themeUpdate on value chain development theme
Update on value chain development theme
 
Value chain finance
Value chain financeValue chain finance
Value chain finance
 
Sme clusture processing of coconut kernel and extraction of
Sme clusture processing of coconut kernel and extraction ofSme clusture processing of coconut kernel and extraction of
Sme clusture processing of coconut kernel and extraction of
 
Financing in Transforming Potato Value Chain in Bangladesh:
Financing in Transforming Potato Value Chain in Bangladesh: Financing in Transforming Potato Value Chain in Bangladesh:
Financing in Transforming Potato Value Chain in Bangladesh:
 
Ware house receipt financing as a means of financing the agricultural value c...
Ware house receipt financing as a means of financing the agricultural value c...Ware house receipt financing as a means of financing the agricultural value c...
Ware house receipt financing as a means of financing the agricultural value c...
 
IFPRI- P K Joshi : Financing Agri-value Chain Development In India – Constrai...
IFPRI- P K Joshi : Financing Agri-value Chain Development In India – Constrai...IFPRI- P K Joshi : Financing Agri-value Chain Development In India – Constrai...
IFPRI- P K Joshi : Financing Agri-value Chain Development In India – Constrai...
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
Global Value Chain (GVC) Analysis of Mobile Financing Industry in Bangladesh
Global Value Chain (GVC) Analysis of Mobile Financing Industry in BangladeshGlobal Value Chain (GVC) Analysis of Mobile Financing Industry in Bangladesh
Global Value Chain (GVC) Analysis of Mobile Financing Industry in Bangladesh
 
Chilli cultivation, trading process
Chilli  cultivation, trading  processChilli  cultivation, trading  process
Chilli cultivation, trading process
 

Similar to Gift mafuleka :cutting edge agric value chain financing

IFC_Agriforum_Report
IFC_Agriforum_ReportIFC_Agriforum_Report
IFC_Agriforum_ReportTerry Wyer
 
future for small farms
future for small farmsfuture for small farms
future for small farmspropac
 
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji Richard
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji RichardImpact of Digital Technology on Livestock Farming by Adeshile, Adedeji Richard
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji RichardDeji Richard Adeshile
 
Ian smith oneNS presentation october 2 2014
Ian smith oneNS presentation   october 2 2014Ian smith oneNS presentation   october 2 2014
Ian smith oneNS presentation october 2 2014onens
 
Contrasts to agriculture finance in Malawi by Morut Martin Isyagi
Contrasts to agriculture finance in Malawi  by Morut Martin IsyagiContrasts to agriculture finance in Malawi  by Morut Martin Isyagi
Contrasts to agriculture finance in Malawi by Morut Martin IsyagiIFPRIMaSSP
 
Abdul Kamara
Abdul Kamara Abdul Kamara
Abdul Kamara IFSD14
 
Economic Report on Africa 2013
Economic Report on Africa 2013Economic Report on Africa 2013
Economic Report on Africa 2013Dr Lendy Spires
 
The Road to Agricultural Transformation in Africa - Feed Africa’
The Road to Agricultural Transformation in Africa - Feed Africa’The Road to Agricultural Transformation in Africa - Feed Africa’
The Road to Agricultural Transformation in Africa - Feed Africa’Francois Stepman
 
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...Brussels Briefings (brusselsbriefings.net)
 
farmco (1).pptx Growing Sustainably, Harvesting Responsibly
farmco (1).pptx Growing Sustainably, Harvesting Responsiblyfarmco (1).pptx Growing Sustainably, Harvesting Responsibly
farmco (1).pptx Growing Sustainably, Harvesting ResponsiblyLeeHuang12
 
Sanjay Sethi - Food Security RAK Event
Sanjay Sethi - Food Security RAK EventSanjay Sethi - Food Security RAK Event
Sanjay Sethi - Food Security RAK EventSanjay Sethi
 
Challenges and Solutions to Food Security
Challenges and Solutions to Food SecurityChallenges and Solutions to Food Security
Challenges and Solutions to Food SecuritySanjay Sethi
 
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORM
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORMEGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORM
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORMICARDA
 
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...Dr Dev Kambhampati
 

Similar to Gift mafuleka :cutting edge agric value chain financing (20)

IFC_Agriforum_Report
IFC_Agriforum_ReportIFC_Agriforum_Report
IFC_Agriforum_Report
 
A supporting enabling environment in Africa, including role of credit/savings...
A supporting enabling environment in Africa, including role of credit/savings...A supporting enabling environment in Africa, including role of credit/savings...
A supporting enabling environment in Africa, including role of credit/savings...
 
future for small farms
future for small farmsfuture for small farms
future for small farms
 
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji Richard
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji RichardImpact of Digital Technology on Livestock Farming by Adeshile, Adedeji Richard
Impact of Digital Technology on Livestock Farming by Adeshile, Adedeji Richard
 
Ian smith oneNS presentation october 2 2014
Ian smith oneNS presentation   october 2 2014Ian smith oneNS presentation   october 2 2014
Ian smith oneNS presentation october 2 2014
 
Contrasts to agriculture finance in Malawi by Morut Martin Isyagi
Contrasts to agriculture finance in Malawi  by Morut Martin IsyagiContrasts to agriculture finance in Malawi  by Morut Martin Isyagi
Contrasts to agriculture finance in Malawi by Morut Martin Isyagi
 
Abdul Kamara
Abdul Kamara Abdul Kamara
Abdul Kamara
 
Esada value chains
Esada value chainsEsada value chains
Esada value chains
 
Economic Report on Africa 2013
Economic Report on Africa 2013Economic Report on Africa 2013
Economic Report on Africa 2013
 
ICT Enabled Service Delivery for Rice Farming
ICT Enabled Service Delivery for Rice FarmingICT Enabled Service Delivery for Rice Farming
ICT Enabled Service Delivery for Rice Farming
 
This is Africa - Realising Africa's Potential
This is Africa - Realising Africa's PotentialThis is Africa - Realising Africa's Potential
This is Africa - Realising Africa's Potential
 
The Road to Agricultural Transformation in Africa - Feed Africa’
The Road to Agricultural Transformation in Africa - Feed Africa’The Road to Agricultural Transformation in Africa - Feed Africa’
The Road to Agricultural Transformation in Africa - Feed Africa’
 
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...
Brussels Briefing 47: Josephine Mwangi "Innovative finance for agriculture tr...
 
farmco (1).pptx Growing Sustainably, Harvesting Responsibly
farmco (1).pptx Growing Sustainably, Harvesting Responsiblyfarmco (1).pptx Growing Sustainably, Harvesting Responsibly
farmco (1).pptx Growing Sustainably, Harvesting Responsibly
 
Eastern and Southern Africa Dairy Industry Opportunities
Eastern and Southern Africa Dairy Industry OpportunitiesEastern and Southern Africa Dairy Industry Opportunities
Eastern and Southern Africa Dairy Industry Opportunities
 
Sanjay Sethi - Food Security RAK Event
Sanjay Sethi - Food Security RAK EventSanjay Sethi - Food Security RAK Event
Sanjay Sethi - Food Security RAK Event
 
Challenges and Solutions to Food Security
Challenges and Solutions to Food SecurityChallenges and Solutions to Food Security
Challenges and Solutions to Food Security
 
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORM
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORMEGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORM
EGYPT’S AGRIBUSINESS ENTREPRENEURSHIP DIGITAL PLATFORM
 
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...
Dr Dev Kambhampati | USAID- Investing in Shea in West Africa- Investor's Pers...
 
Expectations for the January 2018 Biennial Review
Expectations for the January 2018 Biennial Review Expectations for the January 2018 Biennial Review
Expectations for the January 2018 Biennial Review
 

More from FARA - Forum for Agricultural Research in Africa

More from FARA - Forum for Agricultural Research in Africa (20)

Report amendement cons&gov_manual_business_mtn_200713
Report amendement cons&gov_manual_business_mtn_200713Report amendement cons&gov_manual_business_mtn_200713
Report amendement cons&gov_manual_business_mtn_200713
 
Recomendation from side events innovations
Recomendation from side events innovationsRecomendation from side events innovations
Recomendation from side events innovations
 
Networks seaafsre
Networks seaafsreNetworks seaafsre
Networks seaafsre
 
Monty jones aasw2013 from ouaga to accra
Monty jones aasw2013 from ouaga to accraMonty jones aasw2013 from ouaga to accra
Monty jones aasw2013 from ouaga to accra
 
Final nodumo ghana
Final nodumo ghanaFinal nodumo ghana
Final nodumo ghana
 
Fara strategy and mtop 2014 2018 eob july 2013
Fara strategy and mtop 2014 2018 eob july 2013Fara strategy and mtop 2014 2018 eob july 2013
Fara strategy and mtop 2014 2018 eob july 2013
 
Fara presentation jane karuku
Fara presentation jane karukuFara presentation jane karuku
Fara presentation jane karuku
 
Far for fara july2013 16-(compr-web)
Far for fara july2013 16-(compr-web)Far for fara july2013 16-(compr-web)
Far for fara july2013 16-(compr-web)
 
Board membership list for 2013 2016
Board membership list for 2013 2016Board membership list for 2013 2016
Board membership list for 2013 2016
 
Africa r&d for accra july 2013
Africa r&d for accra july 2013Africa r&d for accra july 2013
Africa r&d for accra july 2013
 
Afaas presentation __accra sc week july 2013
Afaas presentation __accra sc week july 2013Afaas presentation __accra sc week july 2013
Afaas presentation __accra sc week july 2013
 
5 asapam ier fara 2013 final2
5 asapam ier fara 2013 final25 asapam ier fara 2013 final2
5 asapam ier fara 2013 final2
 
3 accra july 2013 final
3 accra july 2013 final3 accra july 2013 final
3 accra july 2013 final
 
3 fara annual meeting accra ( final)
3 fara annual meeting accra ( final)3 fara annual meeting accra ( final)
3 fara annual meeting accra ( final)
 
2 the microdose technology to improve crop productivity
2 the microdose technology to improve crop productivity2 the microdose technology to improve crop productivity
2 the microdose technology to improve crop productivity
 
2 prof. adipala ekwamu experiences from ruforum session ii 6_aasw fara ga
2 prof. adipala ekwamu experiences from ruforum session ii 6_aasw fara ga2 prof. adipala ekwamu experiences from ruforum session ii 6_aasw fara ga
2 prof. adipala ekwamu experiences from ruforum session ii 6_aasw fara ga
 
2 fara science week 2013
2 fara science week 20132 fara science week 2013
2 fara science week 2013
 
1 inref project presentation revised final
1 inref project presentation revised final1 inref project presentation revised final
1 inref project presentation revised final
 
1 monty jones aasw2013 continental initiative and emerging issues
1 monty jones aasw2013 continental initiative and emerging issues1 monty jones aasw2013 continental initiative and emerging issues
1 monty jones aasw2013 continental initiative and emerging issues
 
1 ega partnership side event pres accra july 2013
1 ega partnership side event pres accra july 20131 ega partnership side event pres accra july 2013
1 ega partnership side event pres accra july 2013
 

Recently uploaded

Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 

Recently uploaded (20)

Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 

Gift mafuleka :cutting edge agric value chain financing

  • 1. CUTTING EDGE AGRICULTURAL DEVELOPMENT THROUGH PUBLIC PRIVATE PARTNERSHIP FINANCE MODELS ---------------------------------------------------------------------- Including experiences of Mphiwe Siyalima Enterprises in South Africa, a small to medium size farming corporation. Gift Mafuleka BTech: Agriculture: TUT Foum for Agricultural Research in Africa 6th Africa Agricultural Science Week, ACCRA, GHANA 15-20 July 2013
  • 2. OUTLINE 1. Background: Agricultural Development in Africa 2. Introduction: Agricultural Financing in Africa 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Industry Level Value Chain Financing 6. Risks Management 7. Conclusion
  • 3. BACKGROUND: AGRICULTURAL DEVELOPMENT IN AFRICA 19th Century • Agricultural Extension Services • Agricultural Co-operatives • International Donor Funding –Supply Driven 20th Century • Agricultural Value Chains • Agricultural Technology • International Donor Funding –Market Driven
  • 4. 1. Background: Agricultural Development in Africa 2. Introduction: Agricultural Financing in Africa 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Industry Level Value Chain Financing 6. Risks Management 7. Conclusion
  • 5. INTRODUCTION: AGRICULTURAL FINANCING • The Future and the Past co-exist in the Present • Subsistence and Smallholder farming versus modern, high tech, integrated value chains operating globally. • New global competition – manufactured competitiveness (value chains) versus old natural /comparative advantages or competitive advantages
  • 6. INTRODUCTION: AGRICULTURAL FINANCING (Cont.) • “What are we as Africa doing to ensure that we champion and pioneer development successes in food value chains across geographical spheres?”
  • 7. INTRODUCTION: AGRICULTURAL FINANCING (Cont.) Financial Analysis Socio-economic contribution Job creations and Skills Development Real Impact
  • 8. INTRODUCTION: AGRICULTURAL FINANCING (Cont.) Financial Analysis Socio-economic contribution Job creations and Skills Development Real ImpactBefore After
  • 9. 1. Background: Agricultural Development in Africa 2. Introduction: Agricultural Financing in Africa 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Industry Level Value Chain Financing 6. Risks Management 7. Conclusion
  • 10. CHALLENGES • Lack of self-driven agripreneurs – Entrepreneur • Disintegrated or lack of relevant training - Management • Unfavourable land tenure systems – Land • Lack of cognitively restructured financing - Capital
  • 11. 1. Background: Agricultural Development in Africa 2. Introduction: Agricultural Financing in Africa 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Industry Level Value Chain Financing 6. Risks Management 7. Conclusion
  • 13. MPHIWE SIYALIMA ENTERPRISES MPHIWE SIYALIMA 2013-14 Grain Production 600ha Maize 500ha Soybeans 100ha Vegetables Production 35 ha Cabbage 20ha GreenMaize 30ha McCain Production 60ha Peas60ha (winter) Semi-intensive Beef Production 200LSU/200ha STUDBreeding 100LSU Preconditioning& Weaner Production CommercialBeef Production 50LSU 13
  • 14. EXPENDITURE 2010/11 Infrastructure Expenditure, 1 212 592.00, 29% Farm Production, 1 133 148.00, 27% Overhead Expenses, 1 077 000.00, 26% Cattle , 403 000.00, 10% Moveable Assets Expenditure, 356 560.00, 8% Infrastructure Expenditure Farm Production Overhead Expenses Cattle Moveable Assets Expenditure
  • 15. EXPENDITURE 2012/13 Infrastructure Expenditure, 550 000.00, 5% Farm Production, 6 500 000.00, 56% Overhead Expenses 1,900,000.00 16% Cattle , 850 000.00, 7% Moveable Assets Expenditure, 1 856 560.00, 16% Infrastructure Expenditure Farm Production Overhead Expenses Cattle Moveable Assets Expenditure 15
  • 16. 1. Background: Agricultural Development in Africa 2. Introduction: Agricultural Financing in Africa 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Industry Level Value Chain Financing 6. Risks Management 7. Conclusion
  • 17. AGRICULTURAL VALUE CHAIN FINANCING (ENTERPRISE LEVEL) 17 Farmer produces for a specific off taker Off- taker Contract Production output Production input Contract Farmer Backgrounder Feedlot operators Agro-processors Exporters Peas seed delivery Harvesting & deliveryCrop husbandryPlanting of peas
  • 18. AGRICULTURAL VALUE CHAIN FINANCING (INDUSRTY LEVEL) Collateral Guarantee Fund 18 18 Government & Donors Collateral (50% - 90% of loan value) Agricultural Development Bank Funding flow Agricultural Lender Collateral Guarantee Fund Fund administration + participation Eligible Lender With extension services Credit Assessment & loan Eligible Borrower Farmer of Agribusiness Partnerships with public & private sectors can be Formal market Futures, Off-take agreements, Open etc. Sales Formal Markets
  • 19. AGRICULTURAL VALUE CHAIN RISK MANAGEMENT MODEL 19 19 OPEN e.g. Traders, Agro-processors, Supermarkets, Retailers. (Spot price) HEDGING e.g. Futures Market, Grain traders - Fixed prices Farmer 60% of direct costs – Grain crops Eligible Lender OFF-TAKE e.g. Agro-processors, Feedlot, Exporters - Fixed Prices 20% of direct costs – Grain crops 20% of direct costs - Grain crops Deliver Proceeds on saleProceeds less direct input costs Cessionofaportionof theproductionoutput Insurance cover i.r.o. Quality & Quantity Insurance wont cover Bad Farming Practices Proceeds (Normally informal markets) 80% of out– Ornamental crops 20% of out– Ornamental crops
  • 20. 1. Background 2. Introduction 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Agricultural Value Chain Financing 6. Risks Management 7. Conclusion
  • 22. Weather RISK MATRIX 22 Low Manageability Watch Factors Distracters Tactical Factors Strategic Drivers BEE and Land Reform Regulatory Compliance Consumer activism Food safety Food Security Cyber crime Ethical Trade and Social Upliftment Water Quality Available Human Capital Climate Change Availability of Resources Value Chain Integration New Technology Global Economy High Impact Low Impact High Manageability Food Inflation Uncertain monitory, tax and fiscal policies Labour Laws Illegal Trading Strategic Alliances Alternative Energy Data fraud Political uprising Globalization
  • 23. Weather RISK MATRIX 23 Low Manageability Watch Factors Distracters Tactical Factors Strategic Drivers BEE and Land Reform Regulatory Compliance Consumer activism Food safety Food Security Cyber crime Ethical Trade and Social Upliftment Water Quality Available Human Capital Climate Change Availability of Resources Value Chain Integration New Technology Global Economy High Impact Low Impact High Manageability Food Inflation Uncertain monitory, tax and fiscal policies Labour Laws Illegal Trading Strategic Alliances Alternative Energy Tea Coffee Dairy Livestock Fishing Rice and Maize AgribusinessesPiggery Data fraud Political uprising Globalization
  • 24. Weather RISK MATRIX 24 Low Manageability Watch Factors Distracters Tactical Factors Strategic Drivers BEE and Land Reform Regulatory Compliance Consumer activism Food safety Food Security Cyber crime Ethical Trade and Social Upliftment Water Quality Available Human Capital Climate Change Availability of Resources Value Chain Integration New Technology Global Economy High Impact Low Impact High Manageability Food Inflation Uncertain monitory, tax and fiscal policies Labour Laws Illegal Trading Strategic Alliances Alternative Energy Tea Coffee Dairy Livestock Fishing Rice and Maize AgribusinessesPiggery Data fraud Political uprising Globalization
  • 25. 1. Background 2. Introduction 3. Main challenges: The 4 Production Factors 4. Enterprise Level Financing 5. Agricultural Value Chain Financing 6. Risks Management 7. Conclusion
  • 26. CONCLUSION • A focus on developing and improving agricultural value chains will change the image of farming, perceptions by the bankers, young people and our governments. • Micro Financiers remain an integral part to smallholder farmer development in Africa. • Our skill, experience and drive as farmers is an asset to our enterprises • Private Public Partnerships as well as agripreneurship and technology drive.