How did AgDevCo start?
AgDevCo was launched in 2009, around the time of the spike in global commodity prices. The idea was to create an impact investment business capable of providing patient [long-term] debt and equity capital to early-stage agribusinesses in sub-Saharan Africa.
The UK government has been our primary funder to date. It recognizes the effectiveness of a business-led approach to development assistance and shares our view about the importance of the agribusiness sector to growth, jobs and food security.
How have AgDevCo and your investment portfolio grown since then?
We started with just US$1 million [about R16,5 million] of funds to invest in Mozambique. Our investment mandate was to make the smallest ‘seed capital’ investments (averaging US$250 000 [R4,1 million]), typically in ownermanaged businesses. By showing what we could achieve with so little, we managed to obtain substantial additional funding. Initially, this was in Mozambique and then also in Ghana and Tanzania. Investing in the early years in those small businesses definitely supported local economic growth and achieved impact, but it was not a good investment in terms of AgDevCo’s own sustainability. The entrepreneurs we were working with required plenty of hands-on support and the size of the investments meant that our costs were always going to outstrip potential returns, even when we were successful.
Given this, we increased the average size of our investments as our funds grew, looking for a mix of early-stage agribusinesses with more formal corporate/ management capability, as well as profitable agribusinesses seeking growth capital.
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Denne historien er fra November 6, 2020-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Uncertainty over Trump's stance on AGOA
It is of vital importance that that the African Growth and Opportunity Act (AGOA) be upheld following the recent US presidential election, in which Donald Trump emerged as the winner.
Plum pollen study reveals varietal differences in pollination effectiveness
A new study undertaken near George, Western Cape, explored pollination in plum varieties, showing key differences in pollen quality. Octavia Avesca Spandiel reports on the research findings.
Study: small cuts to beef production could eliminate years of emissions
In a paper published in early November, scientists reveal that pasturelands, in particular those that were once forests, hold great potential for mitigating the effects of climate change.
Harnessing wind for cleaner energy
At the Windaba Conference and Exhibition, held in October in Cape Town, Western Cape, Niveshen Govender, CEO of the South African Wind Energy Association, spoke to Glenneis Kriel about the state of wind energy in the country and the opportunities that farmers can exploit.
The Cape Grace: a Cape Town icon is reborn, and her new custodians shine
Brian Berkman has had the exceedingly good fortune of spending many nights at the Cape Grace Hotel over the years. He revisits it to find it as impressive as ever.
Cutting-edge tech aiding the agri sector
Toyota Material Handling's innovations conserve resources and reduce the environmental footprint of farming operations.
Use the correct growing medium for safe seedling production
Instead of buying expensive growing mediums for seedlings, farmers can make their own mixtures from local resources, such as manure, which are economical and produce excellent results
Optimising cherry production and quality
Growing cherries in a suboptimal climate requires manipulating trees and temperatures. But with a considerable market advantage, it is worth the effort. Lindi Botha visited ZZ2's Toscana farm, which for four weeks of the year takes prime position in the cherry market.
Biosecurity & nutrition: the foundation of pig farming success
JD Mostert, a consulting swine nutritionist at CS Vet, and Dr Stefan Steyn, a veterinarian at Afrivet, shared their expertise with Sinenhlanhla Mncwango, delving into why biosecurity and nutrition are critical pillars in establishing and maintaining a productive pig farm geared for long-term success.
The business of pig farming: practical steps for success
Running a pork farm requires knowledge and expertise. Mosele Lepheane, director of a small piggery in the Free State, spoke to Sinenhlanhla Mncwango about the structured approach needed to succeed, from drafting a business plan and managing cash flow to sourcing equipment and expanding market access.
