GIZ Nigeria & ECOWAS’ Post

The Agribusiness Dealroom released the 2023 Investor Outlook Report aimed at better understanding the challenges and opportunities from the investors perspective in serving the “Missing Middle” - the financing needs of agri-SMEs ranging from USD 50k - 500k. The report indicates that in 2023, only between 3% and 6% of the balance sheet of the commercial banks in Africa was invested in agriculture, with some exceptions like in Tanzania where it is much higher. Read more on the report here https://lnkd.in/dxfDp5vf There needs to be other incentives (other than impact) to convince commercial banks to invest more. Join the conversation at this year’s Africa Food Systems Summit as we seek to address this funding gap.  #AFSForum2024

Thinking aloud! My thoughts on reforming Agricultural Development Finance in Nigeria. 1. BOA should be refocused to operate like BOI in its approach. Public Sector officers have never been and cannot be as efficient as private sector operators in banking and financial services. Not in Nigeria at least. 2. NIRSAL MFB Ltd Should be sold off to interested private sector operators or liquidated and its assets and liabilities transfered to BOA. 3. Another option for NIRSAL MFB could be to restructure, refocus and reorganize it to function like the US Farm Credit Administration. Working to develop and support village level microfinance institutions, farmers cooperatives and commodity associations in the administration and management of micro-credit and micro-insurance products to smallholder farmers and other vulnerable village level agricultural value chain operators. It could be named, Nigeria Farm Credit Agency, under the Federal Ministry of Agriculture and Food Security; just as we have SMEDAN for Small- Scale Industries under Ministry of trade and industries. 4. NIRSAL PLC should be merged with AGCSF of CBN and renamed Nigeria Agricultural Credit Guarantee Limited, supervised by the Ministry of Finance. 5. The New entity, Nigeria Agricultural Credit Guarantee Limited, should focus only on providing credit guarantee to Agricultural value chain businesses and forget about providing interest rebate or any other distracting non-credit guarantee acitivities. If a relatively younger Impact Credit Guarantee Limited subsidiary of DBN, which is focused on credit guarantees alone, has achieved more mileage than NIRSAL PLC since inception, it is obvious that there is something to learn about focusing solely on one core mandate. 6. The newly established Nigeria Agricultural Development Fund should focus exclusively on private sector equity and debt financing for commercial agriculture (plantations, ranching, dairy, poultry); integrated agro-processing business (with backward integration to primary production through own farm or out-grower schemes) and; technoligy driven Aggregator/Prime Anchor Model value chain farming (eg Babbangona Model, Thrive Agric Model etc). The sector needs to work for the peace and progress of all Nigerians. Nigeria has no business with food crisis. If Brazil can do it, we can also do it. #dotherightthing #dothecantbedone #agricultureinsights #nigeriaeconomy

Investing in agricultural land in Nigeria offers diverse benefits amidst the country's growing economic landscape. From food security to lucrative income streams, agribusiness presents sustainable opportunities. At Helperstone Cities, we're committed to maximizing these investments. Ready to grow with us? Contact Helperstone Cities today to explore agricultural investment opportunities and secure your future in Nigeria's thriving agribusiness sector. 🌾🌱 #AgriculturalInvestment #NigeriaAgribusiness #RealEstateInvesting #FoodSecurity

A MUST-READ!!! Did you know that more than half a billion Africans, 65-70% of the population depend on small or micro-scale farming as their primary source of livelihood? Did you know that the agricultural sector accounts for 20-40 percent of the continent’s Gross Domestic Product (GDP), and is projected to be a $1 trillion industry by 2030 but receives less than 3% of banking credit? Did you know that the productivity of African agriculture is also among the lowest in the world and according to the World Bank, meeting Africa’s demand for food requires $80 billion in investments annually? Did you know that access to appropriate financial services is vital to realizing Africa’s agricultural potential? Many innovative financing mechanisms can catalyse growth in the agriculture sector, and several are currently being deployed. Some countries such as Ghana, Nigeria, and Uganda have also established agriculture credit guarantee schemes housed in their Central Banks however the performance of these schemes has been mixed. Another proven growing practice within the agricultural sector is to bundle agricultural insurance with other products and services provided to smallholder farmers, through aggregators. Despite the challenges that comes with agriculture, agricultural finance can be commercially viable and agricultural lease finance is an option to expand access to finance, without requiring collaterals, allowing for greater mechanization of agriculture in Africa. If you are looking for private partnerships or aggregators in the agricultural industry, connect with us today and register to be our partner via our partnership link in bio. #PartnerWithSharelovvInternational

WHAT INVESTORS LOOK FOR WHEN INVESTING IN AGRICULTURE IN NIGERIA: Funding History Welcome back to our series on "What Investors Look for When Investing in Agriculture in Nigeria." Today, we'll dive into the importance of funding history in attracting investor, Funding history refers to the record of previous investments a business has received, including grants, loans, and equity investments. Investors scrutinize these aspects to gauge the financial discipline and sustainability of an agricultural venture. Why Funding History Matters 1. Utilization of Previous Funds: How a business has used previous funds is crucial. Unfortunately, many beneficiaries of agricultural funding in Nigeria often view it as their share of the national pie, leading to misuse or mismanagement. However, businesses that demonstrate disciplined and effective use of funds to grow their operations stand out. Investors want to see tangible results from previous investments, such as increased production, improved infrastructure, or expanded market reach. This shows that the business can effectively manage and utilize resources for growth. 2. Track Record of Success: A positive funding history reflects a business's ability to attract and manage investments successfully. It builds investor confidence by showing that other investors have trusted the business with their funds and seen returns. A strong track record can significantly enhance the appeal of an agricultural venture to potential investors. For agricultural ventures seeking investment, demonstrating a disciplined approach to managing previous funds is crucial. These factors reflect financial health, stability, and the ability to utilize resources effectively. By showcasing a strong funding history, agricultural businesses can position themselves as attractive investment opportunities. Stay tuned as we continue our series, exploring more factors that investors consider when investing in agriculture in Nigeria. Franklin Ngoforo Chairman, Agri Crowdy #AgriculturalInvestment #FundingHistory #CapitalStructure #NigeriaAgriculture #FarmFinance #AgriBusiness #SustainableFarming #InvestInAgriculture #AgriGrowth #AgriCrowdy

NEWS REVIEW: AFDB INVESTS $10.9BN IN NIGERIA The African Development Bank’s (AfDB) Director-General, Lamin Barrow, announced $10.9 billion in cumulative financing approvals in Nigeria. The bank supports public and private sector projects, focusing on the High 5 priorities. The event emphasized addressing challenges faced by youth and women in agribusiness, to drive Africa’s agricultural revolution and ensure food security... Explore this link to read more... https://lnkd.in/d9r8paYc #agribusinessafrica  #agribusinessnigeria  #agribusiness  #nigeriaagriculture  #economicgrowth  #agricnewsinafrica  #agrinews  #agriculture  #foodsecurity  #agribusinessnews #agriculture

Our new paper titled "Impact of Agricultural Financing on Agricultural Growth Sustainability in Nigeria" examines the impact of agricultural financing on Nigeria's agricultural growth sustainability from 1985 to 2021 using the ARDL technique. The findings indicate that domestic financing (bank loans, ACGSF) positively influences agricultural GDP, while international financing (FDI) negatively impacts long-term growth due to competition and resource conflicts. The paper is accessible at this link: https://lnkd.in/eD-DKGZt. It was a good collaboration with Olumide Ayetigbo abiodun.

British International Investment (BII), a Strategic Partner of the Commonwealth Enterprise and Investment Council (CWEIC), has released a crucial report titled How can gender- and climate-smart approaches unlock financing for SME agribusinesses in West Africa? Funded by BII Plus, this report addresses the significant challenges faced by small and medium-sized agribusinesses in accessing the finance needed for growth. Agriculture is a cornerstone of West Africa's economy, providing jobs for 82 million people. However, a $74.4 billion annual financing gap for SME agribusinesses across sub-Saharan Africa hampers their potential. BII’s report offers valuable insights for financial service providers to adopt inclusive, climate-smart approaches that can unlock financing and support sustainable development in the region. Find out more information and read the report here: https://lnkd.in/e6HKe78D #CWEIC #CommonwealthAdvantage #StratregicPartner

Togo: the African Development Bank grants a loan of over USD 26 million to develop key agricultural sectors through private-sector investments The Board of Directors of the African Development Bank Group have approved a loan of US $26.55 million to Togo to implement the second phase of the Agro-Food Processing Zone Project. The aim is to provide the country with an industrial hub for processing agricultural products and establish a business zone to offer opportunities to young people and women in the Kara and Savanes regions, in the north and far north of the country, respectively. The project, approved in Abidjan on 19 July 2024, will also help to attract a significant level of private investment into key agricultural sectors, such as rice, maize, soya, sesame, cashew nuts and broiler chickens. Read More on: https://lnkd.in/d-u4snpT #agriculture #agroeconomics #agriculturefund #agrofood #africanagriculture

We are #JMSF Agribusiness Nigeria Ltd, a Nigerian agribusiness advisory services provision firm. We have served clients like the #Worldbank, #IITA, #DanishGoverment #DutchGovernment, #Heifer, #GBFoods, #Technoserve, #Afosfoundation, #IFDC, #GIZ, #FCDO(DFID), #GAIN, #PyxeraGlobal, #ILO, and many more. Visit our website to learn more https://lnkd.in/dyF-wyDg and download our brochure. Book a session for greater insights. #Agribusiness value chain development, #project management, working with #smallholder farmers to develop #outgrower models and #Agrisupport services, #research and #mapping, #training and #capacity building, #farming, #commodity aggregation & trading, and #technical assistance are our core areas using #data as our oxygen. Talk to us for #innovative and #sustainable solutions. Our results speak for us. Happy to engage with you. #Value for money guaranteed. #JMSF #Advisoryservices #Data #Valuechaindevelopment #agribusiness. #Nigeria #Africa #Consulting. #JMSF, #Addingvalue #Increasingincomes #Economicgrowth. Visit us JMSF AGRIBUSINESS LIMITED @jmsfagribiz, like, comment and follow us on social media.