Grow Africa and IDH launch fund to support agricultural value chain development
Grow Africa has shifted focus from private sector engagement and mobilisation through Letters of Intent, to a more structured value chain development approach that encompasses all value chain stakeholders and is better aligned to National Agriculture Investment Plans.
The new value chain development approach is business-oriented and aims at capturing the best value at all stages of production, processing and trading, from farmers through traders, processors and retailers up to the final consumer.
Many agriculture value chains investment opportunities remain unattractive to the private sector due several factors including low and inconsistent productivity, poor organization of producers and lack of a viable route to market. Given the emerging importance of value chains, Grow Africa and the Sustainable Trade Initiative (IDH) have launched a business case development fund to undertake in depth market studies that are regional, country or value chain-based and assess the current and projected market demand for the crop(s) in order to translate this into production and processing capacity needs.
The $800 000 USD fund will, in 2018, focus on 8 priority value chains to drive commercial agriculture and agribusiness in the following countries:
- Benin – Pineapple
- Ivory Coast – Cassava
- Kenya – Sorghum/ Cassava
- West Africa – Rice
- Nigeria – Tomato
- Rwanda – Maize
- Kenya – Pulses
These business case development studies will provide valuable information for potential private sector investors to assess the viability of commercial investment opportunities. The studies will be used to mobilize private sector investors within Grow Africa multi-stakeholder platforms by promoting them to networked companies, through Annual Investment Forums; and to generate investment commitments in support of Country Agribusiness Partnership Frameworks (CAP-F).