Diversified Investments in Africa

The Ivora Agri-Africa Fund (“IAAF”) is a diversified agribusiness investment company.

The ethos of the company is that in order to provide true economic reform, every activity must be commercially viable, and it is only through adopting these type of projects, that Africa’s challenges of poverty and sustainable economic reform can be addressed.


The object of the fund is to diversify its risk profile through a regional and product spread across the agri-spectrum.
The Fund will identify existing, green- and brown-fields opportunities that can be established and operated on commercial terms, providing:

  • Suitable and sustainable investment returns
  • Upliftment to local and regional communities
  • Job creation and economic reform
  • Security of income and access to established skills

WHY AGRI INVESTMENTS?

By 2050, the world population is projected to exceed 9 billion (currently approximately 6 billion). In order to feed this population, as well as alleviate global poverty in line with the United Nations Millennium Development Goals for 2015, global food production will need to increase by at least 70%.

WHY AFRICA?

  • Population - 1 billion

  • 30 323 million square kilometres of land

  • Annual real GDP growth of 5%+ per annum

  • Africa has the capacity to feed itself and the world

  • Africa has 30% of the world’s fresh surface water, most of which is non-industrialised and can be applied effectively to agri-business

  • Africa has the largest portion of land within the world rain-belt, improving suitability for agri-business

  • Lack of urbanisation in most of Africa means land is available and can be applied to address food security and supply issues without restricting other economic growth

FUND ASSETS

IAAF invests in opportunities across the spectrum of agricultural supply. The fund is not only focussed at grass roots industrial agricultural farming operations, but the entire value chain, and will adopt a vertical integration model to improve and enhance returns.

OPERATING MODEL

The fund is managed by managers based in Africa, and employs expert skills from established agri-businesses globally.
Agri-business operators are sourced locally and receive support and training from the expert agri-management team as commercial operators.

OUTGROWER SCHEMES MODEL

Where IAAF is processing and enhancing produce from primary production, outgrower schem es will be used to upscale the capacity of the processing unit.
It is the view of the IAAF, that in order to deliver a sustainable model, all initiatives need to be economically viable. Where available, Outgrower and Community Based Projects will also be implemented together with relevant support organizations.

Benefits of the outgrower schemes linked to commercial operations include:

  • Enhancing critical mass for IAAF operation

  • Availability of current up to date seeds and genetic material for local producers

  • Establishing and/or providing access to decentralised markets and distribution networks for produce

  • Job creation and skills development

  • Creating a platform for other business and investment and government services

  • Promotion of organic agri-schemes

CHALLENGES IN AFRICA

The challenges of doing business in Africa are widely publicised, and IAAF is certainly not new to these. These risks are all addressed and mitigated before any investment is considered.

  • Political and legal framework (land ownership and security issues, tax jurisdiction, development incentives etc.)

  • Skills (development and retention of skills, availability of “on the ground” skills and supervision)

  • Finance (access to and repayment of funding)

  • Established transport routes and trade markets

RISK MANAGEMENT

Risk is diversified across different geographic locations, political frameworks and agri-product classes
All projects are adopted based on sound commercial principles including target threshold returns, land and market security and capital payback parameters.
Risk assessment is done for all projects, to guide in the developing strategies at an individual project level. Identification of risks requires experience, lateral thinking and common sense.
Risks should be identified by:

  • Identifying and understanding of all the aspects of the project requirements including its interaction with other developments; and

  • Making use of project-specific experts in their given discipline.

WHY THESE INVESTMENTS?

  • Invested in non-traditional asset class providing diversification of risk

  • Investment aligned with global objectives and socially responsible benefits

  • Premium investment returns

  • Stable, long-term investment returns aligned with growth of the agri-business

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