This document outlines an investment strategy for a private investor to invest in cocoa production in Sierra Leone. It discusses the context of cocoa production in West Africa and Sierra Leone's past as a major cocoa exporter. The strategy has a vision to improve cocoa production and farmer livelihoods through mechanized farming and value addition. Key investment principles focus on sustainability, ESG compliance, risk mitigation, and diversification. The proposed strategy is to restructure local partners, set monthly targets, provide incentives, and conduct bi-annual reviews to increase production by 80-100% over 20 years.

1. Agribusiness
Finance and Investment Strategy
For
“A Private Direct Investor”

2. Contents:
 Hypothesis
 Context
 Vision & Mission
 Investment Principles
 Investment Strategy Selection
 Implementation

3. Hypothesis
Finance and Investment strategy for a private Foreign Direct Investor (FDI) Mr. BX with a
multinational company (WLT) Ltd and a local partnership company (AZ & Sons) Ltd
dealing with cocoa production in a developing country (Sierra Leone)

4. Context
 In sub-Saharan Africa Ivory coast, Ghana, Cameroon and Nigeria are the
leading cocoa producers.
 Before Sierra Leone`s civil war (1991-2002), cocoa was a major export
crop but it is at lowest level presently due to several factors, among which
includes, lack of proper regulatory framework, Lack of mechanise farming,
poor incentives to farmers and lack of adequate storage and robust market.
 It is assume that, AZ & Sons Ltd has one hundred and fifty (150) household
farmers across Sierra Leone that are producing appropriately 8k tons of
cocoa annually.

5. Vision and Mission
Vision
To improve the production of cocoa and farmers living standard.
Mission
The Introduction of mechanise farming and product value-added systems to facilitate
export and ultimate growth in Gross Domestic Product (GDP).

6. Investment Principles
In line with the vision of AZ & Sons Ltd and its well-defined mission, to seek a
direct investment to augment their productivity, the following guiding principles
are considered:
 Adherence to the Sustainability Development Goals (SDG) initiatives;
 Ensure the Environment Social and Government (ESG) compliance;
 Enforcement of Diversification with low risk and meaningful returns;
 Use of a standardise Liquidity Risk Management (LRM) policy.
Also, agreement with regards assets, capital, human resource and other operative
instruments are based on the Brownfield Investment (BI) model.

7. Investment Strategy Selection
In terms of financial returns, production is forecast to increase by 80% within the
first 8 years of operations and subsequently 90% to 100% for two decades.
To sustain the forecasted production, risk mitigation is at high priority and the
Multilateral Investment Guarantee Agency (MIGA) guidelines would be
referenced.
Also, the ESG ethical and sustainability standards would be measured in line with
the product positive and negative impact to the society.

8. Implementation
 To achieve the desired outputs, AZ & Sons Ltd would be restructured to meet
the current demand.
 On monthly basis, target would be set in order to achieve the activities planned.
 To motivate staff, additional incentives would be given to the hard workers.
 Bi-annual review of the business processes would be done to address short-fall
and slippages.

9. References
 OECD-FAO Agricultural Outlook 2016-2025. Available at:
http://www.fao.org/3/a-i5778e.pdf (Accessed: 27 July 2019).
 MIGA (2012) “Guidelines & Policy” Available at:
https://www.miga.org/products (Accessed: 27 July 2019).
 World atlas “Top 10 Cocoa Producing Countries”. Available at:
https://www.worldatlas.com/articles/top-10-cocoa-producing-countries.html
(Accessed: 26 July 2019).
 Sierra Leone's Premier Online News Portal (2016) Sierra Leone wants to boost
cocoa production to more than 25,000 metric tons. Available at:
http://www.thisissierraleone.com/sierra-leone-wants-to-boost-cocoa-
production-to-more-than-25000-metric-tons/ (Accessed: 25 July 2019).
 The World Bank – IBRD. IDA Available at:
https://www.worldbank.org/en/who-we-are/ibrd (Accessed: 24 July 2019).

10. Conti… References
 Statista (2019) Annual cocoa production of Africa from 2012/2013 to 2017/18, by
country (in 1,000 tons) Available at: https://www.statista.com/statistics/238172/annual-
cocoa-production-of-africa-by-country/ (Accessed: 24 July 2019).
 IFC'S Success Reflects Six Decades of Experience in Private Sector Development in
Emerging Markets. Available at:
https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/s
ustainability-at-ifc/accountability (Accessed: 24 July 2019).