Impact Summary 2020 - WWW.AGDEVCO.COM
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Impact Summary 2020 WWW.AGDEVCO.COM
2 - AgDevCo 3 - AgDevCo
Our vision:
A thriving
commercial
African
agriculture
sector
$28 Million* $138 Million* 48 Investments*
New commitments in 2020 Portfolio value In ten countries1
* As of the end of 2020
1 11 with Senegal, where AgDevCo’s Smallholder Development Unit has worked with one partner
4 - AgDevCo 5 - AgDevCo
INTRODUCTION
Benefitting both
people and planet
AgDevCo is a specialist investor in AgDevCo provides more than capital; we Our vision is a thriving commercial AgDevCo is part of the solution to climate
early-stage African agribusinesses, are long-term partners for growth and agriculture sector which benefits both change in Africa. We support our partners
providing growth capital through debt and impact. We help our investees grow into people and planet. We contribute to this by to work towards sustainable, and where
equity. Our investments range between US$ profitable businesses by providing specialist investing in and supporting businesses to possible, regenerative solutions. We
2 million and US$ 10 million targeting technical support in agriculture, financial grow, create jobs, produce food, and link perform portfolio carbon accounting to
primary food production and processing management, supply management and farmers to markets. We reinvest the income identify emissions sources and sequestration
firms. We invest across the agricultural value Environmental, Social and Governance. from our investments back into early-stage in line with industry good practice which is
chain, from inputs to logistics, and in all In 2021 we will launch an integrated businesses– maximising impact from every helping inform our climate strategy and route
sub-Saharan African countries except those technical assistance facility, building on the dollar of capital. to net zero.
with upper middle-income status. work of our successful Smallholder
Development Unit.
6 - AgDevCo 7 - AgDevCo
PORTFOLIO OVERVIEW
We invest in early-stage
agribusinesses in Africa
3 Investments 22 Investments 18 Investments A diverse portfolio
In West Africa In East Africa In Southern Africa We work in a variety of sectors and
crops, including high-value export
crops like avocados and lychees;
nutritious food industries for domestic
Since 2010, AgDevCo has markets, and affordable meat protein
invested in 78 agribusiness like poultry and fisheries. Portfolio
across the continent. Our companies are involved through the food
current investment portfolio sector from primary production, through
is comprised of 48 processing to retail.
companies (including a
number of small, legacy The portfolio has a mix of investment
investments) with a value of instruments from short-term working
$138m. These companies capital, to secured and mezzanine debt,
are spread across ten2 to equity and control positions in five
different countries: businesses.
● Countries with active investments/projects
Countries eligible for investment
●
Regional office
Local presence
2 11 with Senegal, where AgDevCo’s Smallholder Development Unit has worked with one partner.
8 - AgDevCo 9 - AgDevCo
IMPACT RESULTS AT A GLANCE
Working with more
small-scale farmers in
2020 than any year to date
To date, AgDevCo’s portfolio created or To date, AgDevCo’s portfolio has engaged
sustained 15,600 jobs (23% women)3 764,000 (39% women) small-scale farmers3
AgDevCo has an impact framework which In 2020, AgDevCo’s investments sustained
allows us to project, track, and understand the same number of jobs at the portfolio
the changes brought about by our level as in 2019 despite challenges related to 760,000
investments. In addition, we undertake case the Covid-19 pandemic, while increasing 15,300 15,600 516,000 Small-scale Farmers,
Traders, and Customers
studies which go deeper into the detail of our opportunities for small-scale farmers. Jobs Created and Jobs Created and
Maintained Maintained Small-scale Farmers,
impact, including multiplier effects. Giving Traders, and Customers
consideration to climate change and gender Average incomes for employees and
equality are part of our approach at every stage smallholder farmers in 2020 increased by
of the investment process. 11% and 4% to $1,860 and $345 respectively. 2019 2020 2019 2020
This means that in 2020 employees and farmers
We assess and report on our impact received $20.5m and $70.9m in income, almost
annually. The direct impacts of our active $100m in total.
portfolio in 2020 are summarised below. Employees working in AgDevCo’s portfolio Even during Covid, the small-scale farmers,
These numbers exclude the ongoing impact of earned more money in 2020 than in 20194 customers, and traders in AgDevCo supply
investments that we have exited. The direct chains in 2020 maintained a similar income
impact numbers are calculated on an attribution level as 20194
basis, which means that in cases where
AgDevCo is not the only capital provider, we
only claim our proportional share of direct
impacts. This is a conservative approach
compared with other impact investors.
$1,670 $1,860
Income per job $350 $345
Income per job per year Income per person
per year Income per person per year
per year
2019 2020 2019 2020
3 Created by our investments and technical assistance, including current and exited investments.
Tropha Afri Oils Uzima GADC 4 A weighted average per job, small-scale farmer, trader or customer in 2020 only at current investments.
10 - AgDevCo 11 - AgDevCo
FOOD SECURITY CLIMATE RESILIENCE
Produced 33 million AgDevCo is part of the
nutritious meals in 2020 solution to addressing
climate change in Africa
African countries are facing a wide range of
climate change risks as well as some Organic pest control
opportunities. Temperatures and rain patterns
The Gulu Agricultural Development
are changing, and weather is less predictable
Company (GADC) in northern Uganda
and more extreme. There are also climate works with 20,000 smallholder farmers to
exacerbated risks, such as locust outbreaks. produce organic cotton. Production is often
There may also be opportunities for some challenged by the large numbers of pests
businesses as growing conditions become which attack the crop. In 2020, the AgDevCo
more optimal for crops in some areas. agriculture team trained staff at GADC to
make a cheap spray from maize and yeast
AgDevCo is part of the solution to that attracts ‘natural enemies’ that prey on
addressing climate change in Africa, our the cotton pests.
technical specialists work with the When GADC trained their suppliers to use
companies in our portfolio to improve their this organic method, it was a great success.
resilience to these climate changes. In 2020, There were fewer pests on the sprayed
we supported agroforestry projects in Ghana, cotton and yields increased by up to 65%.
reviewed key emissions and sequestration 92% of farmers said that they wanted to use
across the active portfolio, and worked with the food sprays in the future. Farmers really
liked that they could make the spray
investees to assess hydrological risks in
themselves in a cheap and easy way.
Mozambique and Malawi.
AgDevCo tackles food security in Africa In 2020, our investments produced 60
in two ways. The portfolio increases million eggs, 2,000 tonnes of staple crops, AgDevCo has committed to be a carbon
income for hundreds of thousands of and 8,250 tonnes of fortified maize, all neutral portfolio within a decade. We will do
people every year. When people have sold to low-income households. That is this through climate-smart business plans, and
more money, one of the first things they equivalent to 33 million nutritious meals, or a measures like planting more trees, supporting
do is buy more, and better, food. year of meals for 30,000 people. In 2021 we sustainable timber, and sustainable land
AgDevCo also makes a direct contribution will be working with the aquaculture industry management. We will offset emissions from
by investing in companies that supply to bring 12,000 tonnes of quality fish necessary land clearing activity in our portfolio.
locally produced nutritious foods and products a year to rural and peri-urban We will also continue to support regenerative
improve equal access for the poor, Kenya. agricultural methods such as low tillage, reusing
especially vulnerable women. animal waste as fertiliser and managing soil
carbon which are already used in the portfolio.
12 - AgDevCo 13 - AgDevCo
TRANSFORMATIONAL CHANGE
We invest to transform
markets
Ultimately, our biggest impact will be where >
Jacoma is a macadamia and chilli farm in
our investments lead to transformational Malawi. Its success has attracted interest
change (e.g., through catalysing the from Nando’s. In 2020, Nando’s tested the
development of a new industry; demonstration idea of procuring birds eye chillies. They set
effects and / or driving economic development up contracts with 50 of Jacoma’s
around our investee business). Although outgrowers and were so impressed with the
difficult to capture, we are confident that the produce they have tripled their order for next
indirect impacts of our investments will be season.
many multiples of the direct impacts that we
>
Our investment with Westfalia in central
measure annually. Examples that we see in the
Mozambique has created, for the first time,
2020 portfolio are as follows and the box
an export industry for litchis. Litchis sourced
opposite:
from local farmers are now sent to Europe in
>
ECA, a maize milling business in central the valuable seasonal window before
Mozambique which buys from over 4,000 Christmas, a few weeks ahead of litchis from Starting new industries market for 500 small-scale maize and soya
farmers. In 2020 Nakifuma started selling
smallholder farmers, has stimulated growth Madagascar. Protein dietary levels in Uganda are lower improved breeds to small-scale pig farmers
in the local livestock sector during 2020 by than the recommended levels. Most of the
>
Great Lakes Coffee company in Uganda is in Uganda and more recently for export to
supplying reliable, cheap, and accessible meat available in Uganda is poor quality
pioneering “Farm to Cup” traceability South Sudan and Democratic Republic of
animal feed. or imported. Nakifuma Farming Company
systems and is now successfully roasting Congo. In comparison to the local breeds,
coffee in Uganda to capture more value is an AgDevCo investment in Uganda. the Nakifuma pigs produce more piglets,
which can be shared with its growers. grow much larger, and have a better meat to
Nakifuma has established the first fat ratio. This increases the farmers’
commercial-scale pork production unit in the revenues and the price they get for the pigs
country to meet a growing demand for pork. and meat. Nakifuma is also trying to be a
Starting a commercial pork industry in model of sustainable meat protein
Uganda has created growth all along the production. Feed is procured from Ugandan
supply chain. Restaurants and shops that suppliers and animal waste is being used for
buy Nakifuma pork are getting extra revenue fertilizer promoting regenerative agricultural
and increasing clients because of the quality practices and minimizing the carbon
pork they can now offer. Nakifuma company footprint of production.
estimates that their additional demand for
animal feed in 2020 created an additional
ECA Jacoma Westfalia Great Lakes Coffee Company
14 - AgDevCo 15 - AgDevCo
GENDER EQUALITY
Gender equality is crucial
to commercial success
42 % 39 % 25 %
Of portfolio have a Of our portfolio’s small-scale Of portfolio sells products
quarter of their leadership suppliers are women specifically benefitting
teams filled by women women
Gender equality and women’s
empowerment are crucial to the Empowering women
commercial success of our investments
and the quality of the development impact A third of employees at GADC are
those investments deliver. There is a lot to women, which is unusual in northern
do as part of the journey towards gender Uganda. In 2020, we did some
equality, but we are already making a real research that showed how employment
difference in the portfolio. with GADC makes women feel proud
and confident. Working at GADC has
Women benefit from AgDevCo’s improved women’s capacity to save,
investments throughout the supply chain. purchase assets, invest in business,
Women farmers are proactively included in and deal with shocks.
contracts and training initiatives. More Employment with GADC also increased
women supplied goods to our investee women’s confidence because as part
companies in 2020 than in any previous of their job they have to train large
year. Women employed at our investees are groups of farmers. This has improved
protected by anti-discrimination and their communication skills and made
anti-harassment policies, and increasingly them less afraid of speaking or sharing
access opportunities to develop and grow. their opinions in public. Another
important part of employment with
In 2020, more of our companies set up GADC is the agricultural and budgeting
child-care and breast-feeding facilities at training provided by the company. This
work. Women employees also received training has made women feel more
training on topics like gender equality in the aspirational.
workplace, personal budgeting, and
operating farming equipment. As
consumers, women are supported with
accessible and nutritious food for them and
their families.
16 - AgDevCo 17 - AgDevCo
TECHNICAL ASSISTANCE COVID-19
“AgDevCo are one of the Supporting our portfolio
few impact investors through the Covid-19
who can empathize and pandemic
understand on-the-
ground operations and
the challenges we face”. In general, our investment portfolio has been >
There was an increase in small-scale farmers
resilient to the economic impacts of buying and selling from investee companies,
Covid-19. However, for some investees, the but in a number of countries the currency
pandemic stifled trade, reduced prices, and devaluation and price reductions meant
increased costs for AgDevCo investee those farmers did not earn much more than
companies. they did in 2019.
We supported our portfolio investees with >
Almost 20% of the jobs filled by women in
flexibility on repayments and extending 2019 were lost in 2020. 12% of jobs filled by
existing investments. The Smallholder men in 2019 were lost in 2020. For example,
Development Unit Covid-19 Facility allowed one company had to reduce employment to
some partners to roll-out targeted agricultural ensure social distancing in its factories;
or health interventions within their businesses which also led it to purchase less supplies
and with the small-scale farmers they work from smallholder farmers. Other companies
with. It supported the procurement of personal did hire more people during 2020, but we
protective equipment and covered increased note that only 23% of these new jobs were
logistical costs incurred during certification filled by women.
audits. Over 18,000 small-scale farmers are
expected to benefit from the support under the We estimate that without the pandemic, the
SDU Covid-19 Facility. employment and the number of small-scale
AgDevCo goes beyond just capital; we > Partnered with 23 agribusinesses.
farmers, traders, and customers engaged
partner for long term growth. A large Over recent years AgDevCo’s direct impact
>
Rolled-out improved agricultural practices would be more than 10-15% higher.
part of this support is provided through metrics have increased by 15-20% per annum.
across more than 115,000 hectares of
our grant and technical assistance facility, Due to Covid-19 we did not see this in 2020:
land.
the Smallholder Development Unit (SDU).
>
Some investee companies cancelled
The SDU was started by Mastercard and >
Recruited and trained 1560 field staff.
expansion plans and reduced their costs in
the FCDO in 2015 and gave grants and
>
Committed US$8.7m response to the pandemic. This meant that
advice to companies to improve how they
as a portfolio there was no increase in the
work with small-scale farmers in their >
Trained 143,000 women and 195,000 men
number of jobs.
supply chains. farmers
The SDU will end in March 2021 after six
In 2021 the SDU work will continue as part of
years of impactful work:
a new AgDevCo technical assistance facility.
18 - AgDevCo 19 - AgDevCo
LOOKING FORWARD
25,000
additional jobs
in our portfolio
by 2030
In 2021 we expect to confirm additional We will also grow our technical assistance In 2020, we will continue to assess our AgDevCo has remained open for
funding that will allow us to continue support to businesses – launching a new portfolio’s carbon footprint scope out business. In 2020, we supported our
investing over the next decade – Technical Assistance Facility. This will potential new revenue streams associated portfolio through the Covid-19 pandemic
improving our resilience as a business provide our businesses with dedicated time with carbon and natural capital. We will at the same time as investing in new
and achieving more impact. If we achieve from industry experts in agriculture, assess climate risks and opportunities in our partners. In 2021, we will continue to
our business plan, we expect to create employment, finance, operations, portfolio and set up climate resilience plans expand our portfolio and contribute towards
opportunities for over 25,000 employees and sustainability and supply chain management. with our investee businesses. Africa’s inclusive growth, food security, and
520,000 small-scaler farmers a year by 2030. It will support sustainable agricultural climate resilience.
This will generate an estimated $590m of practices and gender equality; as well as
income for low-income families annually. climate resilience and the achievement of our
carbon objectives.AgDevCo UK (HQ) Peer House 8-14 Verulam Street London WC1X 8LZ United Kingdom T + 44 (0) 20 7539 2650 E info@agdevco.com WWW.AGDEVCO.COM
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