Catalyzing Capital for Agri-SMEs in Africa

Catalyzing Capital for Agri-SMEs in Africa is sponsored by African Food Changemakers (FASA). FASA (Financing for Agri-SMEs in Africa) is a fund of funds that aims to unlock financing for agricultural Small and Medium Enterprises across Africa by supporting investment funds. This grant provides financial support to businesses in the agribusiness sector.

FASA - Catalyzing Capital for Agri-SMEs in Africa Catalyzing Capital for Agri-SMEs in Africa FASA (or “Financing for Agri-SMEs in Africa”) is a fund-of-funds which aims to unlock financing for agricultural Small and Medium Enterprises across Africa, by supporting investment funds that are active in the sector.

Reducing the funding gap faced by agri-SMEs in Africa by mobilizing catalytic capital , empowering investment managers , and fostering a supportive ecosystem . Providing catalytic capital and technical assistance to investment funds , which will in turn empower businesses operating within agricultural value chains in Africa .

Enhancing food security & nutrition Promoting climate-smart agricultural value chains FASA supports both emerging and established fund managers raising funds across any asset class, currency or region, provided they focus on Africa’s agricultural sector . FASA’s capital is therefore channelled to agri-SMEs in Africa through the investment funds.

For each selected investment fund , FASA provides from $2M to $10M of subordinated capital, mainly in the form of junior equity, alongside capacity building and technical assistance. For the avoidance of doubt, FASA does not provide grants. In addition, FASA provides capacity building and technical assistance to the fund managers and their agri-SME portfolios.

FASA invests in investment funds that meet the following criteria: Have a local presence in Africa, i.e. at least one senior investment professional based, or with the intention to be based, in Africa within the fund closing period (Note: senior investment professional refers to the following positions: Chief Investment Officer, Investment Director, Credit Director) Be an SME Investment Fund that provides initial investment ticket sizes ranging from $15K to $5M (excluding follow-on investments) Deploy at least 30% of its total investable capital in agri-SMEs in Africa Exclude investments in SMEs who are engaged in any of the activities in the IFC Exclusion List Commit to implement FASA’s minimum ESG and impact practices Gender Requirements Alignment Align with FASA’s gender requirements (See Impact Policy) Commit to participating in FASA’s learning agenda Maintain an accessible data room.

Accessible information should include the fund presentation, financial model, legal structure, pipeline and existing portfolio (if any), governance, team bios and track record, ESG & impact policy, and any market research data Investisseurs et Partenaires (I&P) is FASA’s Fund Manager I&P is an impact investment group dedicated to financing and supporting African entrepreneurs while strengthening entrepreneurial ecosystems across the continent .

Through its fund of funds activities, I&P has supported 25 African funds to date, becoming the main backer of emerging African fund managers. With over 20 years of experience in the agri-food sector, I&P has gained hands-on expertise in 15 African markets in a diversity of value chains.

The CGIAR Hub for Sustainable Finance (ImpactSF) is FASA’s Agriculture and Climate Partner CGIAR offers data-driven solutions and science-based evidence to help investors de-risk their portfolios by quantifying climate and environmental risks and impacts , and to enhance investment decision towards sustainable food systems .

CGIAR also builds the capacity of fund managers to design robust climate and agricultural impact thesis and frameworks . Frequently Asked Questions FASA is a multi-donor catalytic capital facility initiated by Norway and USAID to spur investment in Africa’s agricultural growth.

Its objective is to attract philanthropic organizations, DFIs and private capital investors into agribusinesses in Africa, which in turn enhance food security and nutrition, improve livelihoods, and promote climate-smart value chains. When will FASA be operational? FASA is expected to start making investments in the first half of 2025.

What investment instruments does FASA provide? FASA provides subordinated capital , in the form of equity and/or debt. For the avoidance of doubt, FASA does not provide grants.

Besides capital, what other forms of support does FASA provide to investment vehicles? In addition to catalytic capital, FASA provides capacity building and technical assistance to both fund managers and their portfolio agri-SMEs. I am a fund manager, can I access capital from FASA?

Should they be in line with all eligibility criteria listed in the “Eligibility” session, investment managers currently fundraising are invited to reach out by sending their fund deck to info. FASA@ietp. com .

I am an agri-SME, can I access capital from FASA? No. FASA only invests in investment funds and does not provide direct investments to SMEs. I am a bank or a microfinance institution, can I access capital from FASA?

No. Microfinance institutions and banks are not eligible to FASA . FASA invests in investment vehicles that deploy ticket sizes between $15K and $5M to SMEs. What's the maximum exposure of FASA when investing in a fund?

FASA will limit its exposure to any single investment vehicle to a maximum of 49% of the fund's target size.