26 November 2015. Johannesburg, South Africa. CAAST-Net Plus hosted a workshop on Africa-EU cooperation in food and nutrition security.

1. CAAST-Net + Workshop
“Africa-EU ST&I cooperation in Food and Nutrition Security: Innovation & private sector engagement”
26 November 2015, Johannesburg, South Africa

2. “The growing global demand for
agricultural innovation makes it vital
to assess the characteristics that
separate effective from ineffective
innovation fund mechanisms”
DESIGNING AND IMPLEMENTING
AGRICULTURAL INNOVATION FUNDS:
Lessons from Competitive Research and Matching Grant Projects
© 2010 The International Bank for Reconstruction and
Development/ The World Bank

3. 1. New research needs from the
private sector
2. Funding innovation through
innovative research funding
3. Funding innovation through
agribusiness funding

4. Research gaps:
1.Research into processing, storage, food
preparation and other food interventions post-
farm Example: EC/FP7 AFTER: AfricanTraditional Food Revisited by
Research ; DANIDA/UniBRAIN incubators; Soy milk Benin
2.Mechanization and renewable energy
3.Healthier packaged food Example: Pack4Food

5. Renewable Energy research needs
Irrigation: Diesel pumping systems fueled with
biofuel, micro-hydro, solar PV, wind
Agro-processing: Biodiesel pumps, micro-hydro,
microgrids, solar dryers
Mechanical energy: Biodiesel pumps, micro-hydro
Cooking: Cleaner biomass cookstoves, biogas, solar
cookers
Cooling/refrigeration: Larger-scale solar PV and
wind, biodiesel, and micro- and picohydro stations
(power generation of under 5 kW); biodiesel engines

6. 1. National research funding
2. Value chain based research funding
3. International research funding (int)

7.  Some countries have managed to put in place
structures or platforms to encourage
operational use of research results by
producers and took a serious option for
solving the problem of financing the system
 Public funding (donors or national subsidies)
can complement participants’ fees: a % of the
increased global turn-over of a value chain,
on charged services

8. In Senegal, In Senegal the Fonds National de
Recherches Agricoles et Agro-alimentaires (FNRAA)
offers competitive funds for research addressing
the real needs of producers & private sector.
FNRAA is a mechanism for funding public
agricultural research since it involves innovative
farmer organizations directly via the Conseil
National de Concertation et de Coopération des
Ruraux in its decision-making and evaluation.
It allows research orientation to the demands
made by the producers and agribusiness needs.

9. In Burkina Faso, the Ministry of Research Science and
Innovation created in January 2011 the National Fund for
Research and Innovation for Development (FONRID).
orientation of research towards demand and national
priorities;
improving the quality of scientific research;
the promotion of invention and innovation;
diversification of the scientific, technical and
financial partnership.

10. In Ivory Coast 18 value chains work with the
Fonds Interprofessionnels de la Recherche et du
Conseil Agricole (FIRCA) and 13 to 14 are
collecting fees.
The value chain actors identify the projects
which FIRCA finances in the field of applied
research, agricultural advice, technical training
and the reinforcement of capacities.
Examples: hevea , palm oil, coffee, cacao,
pigs, poultry, fruit-citrus

11.  GlobE - Global Food Security.
Federal Ministry of Education and Research of Germany
 Reduction of Post Harvest Losses andValue Addition in
East African FoodValue Chains (University of Kassel):
pastoral meat value chains (RELOAD research project)
 Trans disciplinary research: Stakeholder processes,
knowledge integration and collaborative learning
 Two Dutch Funding instruments on food
security challenges
Netherlands Organisation for Scientific Research
 the Global Challenges Programme
 the Applied Research Fund : involvement of practitioners

12. 1. African banks
2. National SME funding (Ghana, Nigeria, SouthAfrica)
3. EC-SME equity funds (int)
4. NGO-SME equity funds (int)
5. International research funding (int)
6. Investment funds(int)
7. Matching funds (int)

13.  Most banks have SME departments – but exceptionally
agribusiness - with varying degrees of understanding of what
constitutes an SME, whether by annual turnover, number of
employees, or financing needs.
 A number of banks are also trying to formalise their
relationships with agri SMEs through ‘Business Clubs’ for
SME managers and overseas trips to market trade finance
products.
 Financial institutions are not lending to agricultural SMEs
(the ‘supply’ side).
 And SME agribusinesses are not applying for finance (the
‘demand’ side).

14.  too risky and unprofitable to lend to
 poorly managed, inexperienced and
 lacking sound business plans
 undercapitalised and without sufficient
assets such as land against which to lend

15.  There is a ‘missing middle’ of financial products that
are suitable for agricultural SMEs and that this is
holding back their growth.
 Agricultural SMEs tend to be too big for very small-
scale loans offered by NGOs and others, but too
small to be able to borrow money from commercial
lenders affordably and viably
 There is a need for innovative funding schemes to
bring tailor-made loan products to agricultural SMEs

16. In Nigeria: the Fund for Agricultural Financing (FAFIN) and the
Nigerian Funding andYouth Empowerment Programme
an innovative agriculture-focused investment fund that provides tailored capital and technical
assistance solutions to commercially-viable small and medium-sized enterprises (SMEs) and
Intermediaries across the agricultural sector
27 Nagropreneurs that received the initial grant through the Federal Ministry of Agriculture
(FMARD) and Rural Development under theYouth Employment in Agriculture Programme
(YEAP).
One of the funders is KfW. KfW Development Bank carries out Germany’s Financial
Cooperation with developing and emerging countries on behalf of the German Federal
Government.
FAFIN has a preference for investment opportunities that enable import substitution, increase
food security, or bridge gaps and fix inefficiencies along supply chains.

17. In South Africa: Agro-Processing and Agriculture funding
The Industrial Development Corporation (IDC) of South Africa funds the
development of competitive proposals of competitive processed food,
beverage, fibre, forestry and derivative industry that optimally utilises and
develops local and regional
resources to supply domestic demand and increase participation in
international trade.
This is achieved by expanding production capacity and promoting value
adding expansionary agro processing activities in a manner that fosters
economic inclusivity.
The business unit of IDC provides support to a wide range of economically
viable activities in agro-processing (food and non-food) sectors such as:
Maize,Wheat and sugar, Livestock such as cattle, poultry, pigs and game,
Fishing and aquaculture, Beverages, Forestry, Horticulture including fruit,
vegetables, nuts, tea and coffee

18. In Ghana: EDAIF : Export Development Agricultural Investment
Fund (2000, amended 2011)
Development and promotion of agriculture, relating to agro-processing
and agro-processing industry;
Provision of credit, refinancing and credit guarantee through designated
financial institutions to persons in the agriculture and agro-processing
sectors of the economy;
Appraisals and studies necessary to determine areas of the agriculture and
agro-processing sectors that need intervention; and
Monitoring and evaluation of the interventions.

19.  ICCO Cooperation, an international Dutch development
organization launched in May 2015 its Agri-Business
Innovation Challenge
 The purpose is to kick-start and boost the business of
innovative agri-entrepreneurs in Uganda.
 There were cash prizes up to EUR 20,000 for the three most
promising businesses to roll out their business models, and a
chance to qualify for investment by the ICCO Investment
Fund.

20. Rabobank Foundation supports
African exporters of fruits and
vegetables can benefit from slow capital
farmers to combine forces by forming
cooperatives
the purchasing power, the sales
position and obtain financing to develop
farming and export operations.
It allows to commission research
according to FO and private sector
priorities
22 June, 2015. Utrecht. Rabobank.
Conference "The Future of Farming
and Food security in Africa".

21. Entrepreneurs 4 entrepreneurs (Belgium)
Drink yoghurt Laki Laki in Kenia
Farm inThika, factory in Juja
Nutritious breakfast (tourism) and orphanage.
Request: 25,000 Euro for business plan development
REEL FRUIT (Nigeria)
Vitamin rich food snacks. Mechanized food
processing. Request: 80,000 Euro
Geoffman Chili (Uganda):
Chili pepper for food, pharmacology, pepper-spray.
The trees prevent erosion. Request: 50,000 Euro

22. The Delegation of the European Union to Uganda launched in
2015 a SME Development Fund (Equity Fund) It will be open to
all sectors of agribusiness, including livestock.
Invest in commercially viable enterprises with strong growth
potential that empower smallholder farmers in Uganda to
increase their revenue, livelihood
Fund size: USD 30 million (at first closing) – EU will invest EUR
10 million
Investment period: 5 years
The EU/Uganda aims at targeting at least 25-30 companies
with the first closing of the fund.

23. The set up of this fund was
informed by a study on the
commercial beef industry.
The overall objective of this
study was to contribute
towards obtaining an insight
into the beef value chain in
order to design interventions
that lead to commercial
sustainable solutions that
contribute to better
performance through a
public-private partnership
with focus
on small and medium
enterprises.

24. 1. Investment: Individual investments in the range of €
200,000 - € 5 million.
2. Business Development and Advisory Services
3. Value Chain Analysis for better accountability and
decision making.
• EU blending framework.
• Call for Proposals (Grants): Smaller size investments may be
addressed through Call for Proposals
• Financed out of thematic programmes, as well as regional
and country programmes.