Agri09 day iii - session v - part ii - ben zwinkels - fmo
AGRIBUSINESS FORUM CAPE TOWN Empowering the Private Sector to Boost Productivity & in Africa. 14 – 17 June 2009 Ben Zwinkels
AgricBusiness Forum June 2009Working experiences• 1975 four years of co-operative banking Cameroon• Two years of SME Business Development in Tunisia• 27 years with FMO• 34 years of business finance experience in Africa• 13 year Private Equity experience• Board Member in Africa Commercial Banks• Active in the Netherlands Africa Business Council
1. FMO’s Mission CREATION OF SUSTAINABLE EMPLOYMENT THROUGHPRIVATE SECTOR DEVELOPMENT
AgricBusiness Forum June 2009FMO• International Development Finance Institution, established in 1970• Dutch State owned 51% and major banks 42%• AAA rating from Standard & Poor’s• Banking licensed• For 2009 EUR 1,5 billion available.
AgricBusiness Forum June 2009FMO’s Focus & Financial Products: • Financial Sector Development especially in Low Income Countries • Housing Finance Solutions • Energy – including renewable (solar panels, wind mills etc) • Private Equity Funds • Long Term Finance to Commercial Banks • SME and MICRO Finance support • Infrastructure, Telecom, Education and Health care together with experienced partners
AgricBusiness Forum June 2009FMO’s network in Africa: • Financial sector in Africa: • Participations in commercial banks like Group Bank of Africa Group in 14 countries (Mali) Group Afriland First Bank in 5 countries (Cameroon) Access Bank Nigeria, now operational in 5 African countries ABC Bank in 5 Southern Africa countries (Zimbabwe) • AfricInvest Financial Sector Fund like: Abbey Housing Finance Nigeria Cogebanque in Rwanda EXIM Bank South Sudan (Juba)
AgricBusiness Forum June 2009 FMO’s network in Africa:•24 Private Equity Investment Funds for African SME’s like: Tuninvest Finance Group, 4 funds for North Africa region AfricInvest Capital Partners, 3 funds Pan African. AUREOS Pan-African Investment Funds (Kenya, South Africa) Fidelity Capital Partners, 3 funds for Ghana, Liberia en Sierra Leone Central Africa Investment for Cameroon, Chad Congo DRC GroFin , SME finance in Kenya, Uganda, Tanzania, Rwanda KIBO Fund, Mauritius operational in southern Africa countries Africa Venture Capital Association•Leasing activities like : Group Alios, SME-Leasing operational in six African countries Magreb Leasing operational in Algeria
AgricBusiness Forum June 2009Realised investment around in 450 big companies allover Africa with strategic partners, commercial banks andPrivate Equity Managers• North Africa : mostly high standard and good performing• West Africa : smaller companies consolidating for growth• Central Africa: start ups with high risk profiles• East Africa : new technology and Indian Joint Ventures• South Africa : booming Private Equity Business
AgricBusiness Forum June 2009AFRICA WINNING FACTORS> Financial sector development with a lot of initiatives> Strong local banks already operational> New generation of well-educated managers> Politically renewed great attention for investments> Big quantities of oil and other raw materials> Agricultural and Horticultural developments> Communication is everywhere> Africa within 30 years?
AgricBusiness Forum June 2009Africa’s winning factors:• Petrol in Central Africa with high returns• Tourism and Health• Countries: South Africa, Nigeria , Tunisia, Angola, Algeria, Sudan• Focus on Private Sector Development• North and South Africa are penetrating!• Business opportunities everywhere
3. Agric. Business BIG POTENTIAL TROUGHPRIVATE SECTOR DEVELOPMENT
AgricBusiness Forum June 2009Agricultural Business Opportunities in Africa• Lot of available land, Angola, Mozambique, Zambia• A huge continent with a high level of education• International agricultural research available• Ready for modernisation and professionalism• International players are now ready• Africa governments are ready for cooperation• Food scarcity misused• Investment funds targeted for Agric. Business
AgricBusiness Forum June 2009 SNS Pan-African Agricultural Fund• SNS is the leading Dutch based SRI asset manager• SNS has EUR 23 billion of Assets under Management• Fund management is a partnership between FMO and SNS• New African Agribusiness and Farmland Fund initiative aimed at local and international institutional investors• Fund size: EUR 75-100 million• Net return target : CPI+10%• Building on growing investment interest from international institutional investors in agricultural sector• Focus on long-term investments (10 yrs+) with a strong emphasis on sustainability (environmental, social and governance issues), land reform and workforce beneficiation in particular
AGRIC BUSINESS FORUM CAPE TOWN Private Equity and Business Development in Africa Thanks for your time