gafsp private sector window – investing for impact · pdf file28.10.2016 ·...
TRANSCRIPT
GAFSP Private Sector Window
Investing for Impact
October 28, 2016
Program Overview
Public Sector Window
Administered by: World Bank
Funding: US$1,221 Million
Donors: 9 donors (Australia, Canada, the Bill & Melinda Gates Foundation, Germany, Ireland, Korea, Spain, UK, and US)
Overview: Provides grant funding directly to sovereign governments in accordance with country’s macro strategy. Launched 2010
Private Sector Window
Managed by: IFC
Funding: US$356 Million
Donors: 6 donors (Netherlands, Canada, Japan, UK, US, Australia)
Overview: Provides investment and advisory services to eligible private sector companies in agribusiness, in conjunction with IFC’s investments. Re-Launched in 2012.
GAFSP is a multilateral mechanism designed to assist in the implementation of
pledges made by the G-20 governments to help the world’s poorest countries
reduce poverty and improve rural livelihoods and food security.
2
Objectives of GAFSP
Support Climate Smart Agri solutions
Increase productivity through gains in yields and adopting innovative
technology
Support inclusive business - linking farmers to market and gender focus
Improve access to finance and reduce risks in agriculture
GAFSP aims to address food security in the lowest income countries by improving the livelihoods
of SME and smallholder farmers through sustainable solutions that:
3
4
Delegated Investment Authority to IFC (IDA-only Countries)
Africa
• Benin
• Burkina Faso
• Burundi
• CAR
• Chad
• Comoros
• Cote d’Ivoire
• DRC
• Eritrea
• Ethiopia
• Gambia
• Ghana
• Guinea
• Guinea-Bissau
• Kenya
• Lesotho
• Liberia
• Madagascar
• Malawi
• Mali
• Mauritania
• Mozambique
• Niger
• Rwanda
• Sao Tome & Pr.
• Senegal
• Sierra Leone
• Somalia
• South Sudan
• Tanzania
• Togo
• Uganda
• Zambia
East Asia
• Cambodia
• Kiribati
• Laos PDR
• Marshall Islands
• Micronesia, FS
• Myanmar
• Samoa
• Solomon Islands
• Tonga
• Tuvalu
• Vanuatu
ECA
• Kosovo
• Kyrgyz Rep.
• Tajikistan
Latin America
• Guyana
• Haiti
• Honduras
• Nicaragua
MENA
• Djibouti • Yemen
South Asia
• Afghanistan
• Bangladesh
• Bhutan
• Maldives
• Nepal
By Approval of GAFSP Donor Committee (IDA-blend Countries)
Africa
• Cameroon
• Cape Verde
• Congo, Republic
• Nigeria
• Zimbabwe
East Asia
• Mongolia
• Papua New Guinea
• Timor Leste
• Vietnam
ECA
Latin America
• Bolivia
• Dominica
• Grenada
• St. Lucia
• St. Vincent
South Asia
• Pakistan • Sri Lanka
• Moldova • Uzbekistan
Countries Eligible for GAFSP Funding Support (FY16 List)
4
5
• Should be projects that both the client and IFC could not do without support
• Used to “de-risk” projects for the market
• Targeted to risks that are appropriate for private sector to bear (not risks that ought to
be assumed by the public sector)
Moves Beyond IFC Additionality
• Minimum concessionality: Provide minimum “subsidy element” in financing to
enable greater probability for sustainability & market transformation; minimizes over
subsidizing
• Maximizing leverage of private sector; ensure private risks born by private sector
• Incentives for project sponsor aligned with impact performance
Avoids Market Distortion
• Time-bound: should not be applied where long term subsidies are required; subsidy
is limited in time (e.g.: 5-8 years) but offered until market/track record is established;
subsidy should be limited to demonstration/decline over time
• Targeted approach for specific barriers (risk and cost) inhibiting investment
• Link with Advisory Services: Broaden impact and achieve market transformation
Leads to Sustainability
• Cost effectiveness to achieve development impact
• Governance: deploy concession funding with the highest standard of care, and with
governance structure which manages inherent conflicts of interest in funding
structuring and decision making
Upholds Transparency
IFC Principles for Deploying Blended Finance
5
GAFSP Private Sector Window Program
Results to Date
(April 2012 – September 2016)
6
GAFSP Private Sector Window
Global Map as of Sep 2016
africaJUICE
Juice Processing
Ethiopia
Malawi Mangoes
Juice Processing
Malawi
Pearl Dairy
Dairy Processing
Uganda
Probiotech
Poultry Feed
Nepal
Root Capital
Agri Finance NBFI
Global
Pran
Food Processing
Bangladesh
Warehouse Finance
Mali
BICIS RSF
Warehouse Finance
Senegal
SIB RSF
Agri Finance
Cote d‘IvoireFDL
Micro Finance Inst.
Nicaragua
CRDB
Warehouse Finance
TanzaniaRoya Renovation
Coffee Replanting
Nicaragua
GAFSP Investment projects
supported by Advisory services
Nedbank
Warehouse Finance
South Africa
Wienco Liberia
Liberia
Acleda
Cambodia, Myanmar
Rubber Renovation
Liberia
Farmer Financing
Rwanda
Cameroon WB/IFC
Meridian
Agri Inputs
Malawi
Sofitex
Warehouse Finance
Burkina Faso
Tiviksi Dairy
Mauritania
Ethiopian Coffee
Ethiopia
MHV
Bhutan
KTDA
Kenya
Fertiplant
Kenya
Balton CP
Kenya
SMTP
Madagascar
Insta
Kenya
Barry Callebaut
Cote D’lvoire
7
Status of GAFSP Investment Portfolio as of Sep 2016
• 36 GAFSP projects have been approved for total amount of US$186 million in 21 countries
• 33 GAFSP projects have been committed for a total amount of US$164 million
• 18 GAFSP projects have been disbursed for a total amount of US$117 million*
8
* Excluding RSF
Note: Charts based on the committed exposure
Senior loan37%
Risk Sharing Facility
32%
Subordinated Loan19%
Quasi Equity4%
Common Shares
3%
Preferred Shares
2% Senior loan (Local Curr)2% Credit Line
1%
Burkina Faso21%
Cambodia12%
Kenya 10%Africa
8%
Rwanda7%
Tanzania6%
Nicaragua5%
Bhutan4%
Bangladesh3%
Malawi3%
Mauritania3%
Mali3% Ethiopia
3%
Uganda2%
Liberia2%
Myanmar2%
Senegal2%
Cote D'Ivoire2%
Cameroon1% Nepal
1%
Madagascar1%
Africa76%
East Asia14%
Latin America5%
South Asia5%
Through FI
65%
Direct Investme
nt35%
By Product By Region
By CountryThrough Financial Intermediary
Status of GAFSP Advisory Portfolio as of Sep 2016
• 34 Active GAFSP AS projects have been approved for total amount of US$8.2 million in 24 countries
9
$5,544,592, 68%
$391,000, 5%
$767,146, 9%
$106,500, 1%
$800,900, 10%$602,576, 7%
By Region(US$ volume)
Africa
South Asia
Latin America
East Asia
Middle East
Global
$768,630, 9%
$2,230,186, 27%
$3,425,310, 42%
$1,076,012, 13%
$712,576, 9%
By Thematic Area(US$ volume)
Access to Finance
Ag. Prod. Clim. Res
Farmers 2 Mkt
New Technology
Other
$6,324,376, 77%
$1,511,562, 18%
$251,000, 3%$125,776, 2%
By Activity(US$ volume)
AS Project
Diagnostic
M&E/Learning
Bus. Dev. Events
Note: Charts based on the committed exposure
GAFSP Private Sector Window Target to Reach More Than
Three Million Farmers
10
GAFSP PrSW investments focus on high development impact through both financial investment
support and advisory projects that build capacity and provide training and tools. In total we target
to reach over 3.3 million farmers, most of them semi-commercial smallholders and subsistence
farmers with less than 2 ha of farm land.
GAFSP Leveraging Five Times of Private Investment
11
The concessional funding from GAFSP, combined with the flexibility of GAFSP’s features, help the
project mobilize and leverage more private sector investment from IFC and other global and local
investors. Since the inception of GAFSP PrSW in 2012, for every GAFSP dollar invested into the
project it attracted on average $1.7 from IFC and $3.1 from other DFI/private investment.
Blended Finance Solutions
12
Concessionality of GAFSP Investment Projects (1/2)
Country Product Front-Ended
Disb.
Subordin. in
Repaym.
Subordination
in Liquidation
2nd Ranking
Security/unsecured
Pricing
Differential
Subsidy
(% of total project size)
PRAN Bangladesh Sr Loan none
GWFP CRDB Tanzania Sr Loan $0.20m (0.6%)
Root Capital Global Sr Loan $1.16m (11.5%)
Tiviski Mauritania A Loan $0.24m (2.1%)
Malawi Mangoes Malawi 2nd Lien Loan $1.1m (10.9%)
GWFP Nedbank Africa 15% FL $0.97m (1.0%)
SIB Côte d’Ivoire 25% FL $0.49m (1.2%)
FDL Nicaragua Nicaragua Sub Loan $0.30m (3.8%)
Pearl Dairy Uganda Sub Loan $0.82m (5.4%)
GWFP Mali Cotton Mali Guarantee $0.05m (0.6%)
Africa JUICE Ethiopia Pref. Eq $0.93m (5.9%)
Probiotech Nepal Str. Eq $0.59m (7.6%)
Roya Renovation Nicaragua Guarantee $3.3m (12.2%)
GWFP BICIS Senegal 30% FL $0.84m (2.1%)
Acleda MFI Cambodia Sr Loan $0.2m (0.18%)
Acleda MFI Myanmar Sr Loan $0.46m (7.7%)
13
Concessionality of GAFSP Investment Projects (2/2)
Country Product Front-Ended
Disb.
Subordin. in
Repaym.
Subordination
in Liquidation
2nd Ranking
Security/unsecured
Pricing
Differential
Subsidy
(% of total project size)
Meridian Mozambique,
MalawiSub Loan $0.76m (3.8%)
GWFP Burkina
FasoBurkina Faso Sub Loan $0.13m (0.4%)
AIFL Rwanda
Farmer FinancingRwanda
Credit line &
Guarantee $0.64m (6.1%)
DSM ETG RwandaSr Loan
& Str.eq $0.77m (1.3%)
Ethiopia Coffee
RSFEthiopia Guarantee $0.16m (1.1%)
Cameroon –
BICECCameroon Guarantee $0.68m (13.6%)
Cameroon –
SocGenEthiopia Guarantee $0.68m (13.6%)
SMTP Madagascar Sub Loan $1.1m (16.2%)
Fertiplant Kenya Sub Loan $0.47m (2%)
MHV Bhutanpreferred
shares $0.8m ( 3.8%)
Balton Kenya Sub Loan $0.28m (1.9%)
Wienco Liberia Liberia Sub Loan $0.28m (5.7%)
Insta Kenya Sr Loan $0.37m (2.7%)
Barry Callebaut Cote D'Ivore Guarantee $0.27m (13.3%)
SIB Cargill RSF Cote D'Ivore Guarantee $0.76m (2.5%)
KTDA- Small
Hydro Kenya Sr Loan $1.1m (1.3%)
14