James Addo

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TBLI CONFERENCE™ EUROPE 2012 - Zurich - Switzerland

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  • Need to re-check with Richard the actual investor, different in investment monitoring table
  • James Addo

    1. 1. Let’s Scale James K. Addo
    2. 2. Messages • Purpose • Our Approach • Context –  RE, Agric, Market Linkages (aka IB ) • Achievements, Case Studies • Lessons
    3. 3. Investing for impact is achieved when moneyis invested to SMEs and organizations(including small holders) in order to generatemeasurable social and environmental impacton a community in addition to financialreturns.Definitions IIAS 3
    4. 4. Purpose Title 4
    5. 5. Our Integrated Value Proposition  Promote resilient livelihoods and Global Country Sector shared prosperity for BoP throughKnowledge Context Expertise capability development and job creation  Prepare (graduate) SMEs to make them investment-ready Client  Execute investment facilitation Impact Financing New through partnerships Learning  Capture best practice to maintain knowledge leadership
    6. 6. Our Approach & Track Record Title 6
    7. 7. Incubator Value Chain AverageEnterpriseMed-sized Missing firm Middle Small Graduationenterprises ProcessGroups ofIndividual Angel $Start-ups Individual Start-up Micro/Seed $Enterprise Incubation/Angel Venture capital Private Equity/Debt Sizes Funding Source: Seed SNV IIAS Patient Capital Market Finance
    8. 8. How We Work With: - ClientsInvestment Advisory Practice – Graduation & Capability Development Identify and analyze via region and market, specific opportunities, based on investing partner risk profile and social impact requirements. Opportunity Mapping Conduct SME client needs assessment based to determine potential impact on client and members as well as investing partner’s return criteria Needs Assessment Analyze, propose mitigation and hedging of identified potential risks via provision core Capability technical assistance to SME Clients Development Advisory Services Advice on the optimal investment approach and Deal structure to optimize financial and social returns Structuring for client and partner Quality Assurance Support enterprises to maximize growth and accelerate social impact while minimizing risks and improving quality Impact Measurement Develop objective, evidence-based social and financial impact assessments of projects and entire program Title 11
    9. 9. Achievements – 2008-20124-year historyThree phases – starting 2008 I. Preliminary Exploration – 2-year Duration (ESA Pilot) US$10.4MM in facilitation – 14 SMEs Total Partnership $: US$910MM • Partnerships and Capital Raise Mandates to date  Africa US$460  Latin America US$450
    10. 10. Some Current Deals• Facilitation (US$27MM)II Advisory mandate to raise up to US$27MM for a food security-relatedclient and also W. Africa’s largest rice producer to engage in CSA, RE(Mill), Expansion, Community Support & Commercial Outgrower Program• Market Linkages (IIAS meets IB) (US$5MM)Integrated buyer-market linkage program across 3-producer (W. Africa)and 3 buyer (EU & N. America) countries involving bio shea consumerproducts.• Investment Fund Advisory US$Africa - US$350MM facilitationAsia - US$11MM fund managerLATAM - US$400MM facilitation Title 10
    11. 11. Case Studies Title 11
    12. 12. SEE HAND OUTS• KATIE – Agri-business – Spices & Vegetable• PRAIRIE VOLTA – Rice Production Title 12
    13. 13. Case Study : Graduation of KAITE -The CompanyKAITE Company, Zimbabwe• Cultivation, production, authentication, processing and marketing of organic indigenous plants as essential oils, herbs and spices• Trains and certifies partner farmers to cultivate and process the produce• Links its partner farmers to international fair trade markets• Uses mobile stills and solar dryers, engineered locally. Title 13
    14. 14. Case Study : Graduation of KAITE SNV SupportTA & Business Support by SNV in 2010/2011• Selection, screening, and training of farmers to establish the contract farming model• Business strategy• Organizational structure & governance• Smallholder supply chain design and implementation Title 14
    15. 15. Case Study : Graduation of KAITE Investment• USD$120,000 working capital and CAPEX partly secured through AECF• Goal: to set up mini processing units in each participating communities in order to bring value closer to smallholders.• Expected Impact in 3 years:  Increasing outreach from 400 contracted small holder to 1,000  Number of employees to raise from 27 to 45  Turnover to increase from US$ 200K to 400K (1,000 per SHF) Title 15
    16. 16. Case Study : Prairie Volta Rice InvestmentProject Type: Rice processingAsset Value: Approximately USD 8.44mFunding required: Up to USD 27.5mValue driver: Significant domestic demand, excess processingcapacity, low production costs and competent managementPrairie Volta Limited (PVL) is a farming and agro-processingcompany located in the South central area of Volta region atAveyime [North Tongu District], Ghana. Registered to undertakefarming, milling, processing (rice and maize) and sales ofagricultural products and related services in May 2008, theTexas-based parent took over the assets of the then defunctQuality Grain Company in exchange for a specified investment. Title 16
    17. 17. Case Study : Prairie Volta Rice BenefitsDevelopment Impact Opportunity to engage in climate smart agriculture, enhance carbon capture. Provision of energy, training, extension services, jobs and income to several thousand rural and community farmer families. Direct improvement in lives of households of existing and up to 250 employees at 5500 hectares in health, nutrition and education. Positive impact on Ghana government tax revenues. Direct positive impact in HDI of immediate community through direct support for community development fund Renewable Energy – Rice Husk Powering Title 17
    18. 18. What Have we Learnt Buy-in, Buy-in, Buy-In Execute, Execute, Execute• Utilization of local capability trainers and consultants:  Highly trained, local professionals are not always present  Minimize the layers - Critical• Standardization of investment criteria challenge  Matching SMEs to investor preferences: e.g. size of businesses suitable for funding often smaller than investor threshold• Facilitation of investment alone is not enough  Need for concurrent provision of capability development and impact measurement/assessment services• Scaling-up  In fragmented sub-sectors such as honey, innovation is needed to achieve scale Title 18
    19. 19. Thank you Title 19

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