WBG'S Unlocking Investment and Finance in Emerging Markets and Developing Economies (EMDEs) final project

1. INVESTMENT STRATEGY
OF VOCEA LIMITED IN
NIGERIA

2. WHAT OPPORTUNITY TO INVEST IN
 VOCEA Limited is a key player in the Agribusiness sector and has identified
Organic agriculture sector as growing rapidly and in developed countries
consumption is shifting to healthier foods and willing to pay premium prices
for such products
 The Sub Saharan Africa is blessed with vast arable lands for invest in
Agriculture as well as possess huge investment potential and VOCEA considers
to undertake a greenfield investment in Nigeria

3. NIGERIA AS ONE OF THE TOP
INVESTMENT DESTINATION
 VOCEA intends to invest in Nigeria as an EMDE and such that possess huge
investment potential.
 Nigeria is an attractive site for investment occupying an eight position in RMB
Africa’s “Where to Invest in Africa” report. The government of Nigeria is also
providing incentives to investors in the agricultural sector and opening free trade
zones to boost manufacturing and trade.
 From a demographic perspective, Nigeria has one of the most attractive
demographics in Africa, boasting of a young population with a median age of 18
years, the largest labor force at 90 million and consumer market at $270 billion in
Africa.
 In addition to these, Nigeria is strategically located in the Gulf of Guinea,
providing access to export goods to developed markets as well as the potential to
be Africa’s manufacturing hub. It was also noted that Nigeria’s infrastructure
deficit, which requires a funding of $3trillion over a 30-year period, provides
significant investment opportunities for potential investors.

4.  A major driver of local and foreign investment in the sector is the
attractiveness of the sector to profit making and value creation
 VOCEA intends to invest in a world class processing facility in Nigeria to
process Shea and ginger which are agricultural products produced in large
quantities in Nigeria but are not exportable due to non conformity with
international standards.
 Vocea also intends to invest in the certification process of the selected crops
so that they conform to international standards such as EU, NOP, JAS.

5. ANTICIPATED OBSTACLES AND
SOLUTIONS
 The agricultural/agribusiness operating environment is highly risky and prone
to challenges beyond the control of the investors
 The major constraints are visible in the area of; • Education, Knowledge and
Technical Knowhow-this manifest in the form of poor technical skills, poor
managerial skills, poor access to markets and lack of improved inputs.
 Economic constraint: Prevalent of high cost of production and low returns to
investment.
 Infrastructural Constraint: manifest in the form of bad roads/poor states of
roads and epileptic power supply across the different geopolitical zones
 Financial constraint: This is visible in the form of poor access to credit and
high lending rates.

6. ANTICIPATED OBSTACLES AND
SOLUTIONS
 Socio-cultural and Political Constraint: This manifest in the form of
corruption, insecurity, and ethnic strife/crisis cutting across different zones in
Nigeria. e.g. Boko Haram and Herder/Farmer Clashes.
 The upstream sector of the agribusiness sector has been constrained by theft,
killings and communal clashes in the different geo political zones.
 Policy Constraints/Policy Summersaults. There is currently no long term blue
print or vision for the sector. What we have is tied to the Economic Growth
Recovery Plan.

7. SOLUTIONS
 The sector requires significant hand-holding and long time nurturing.
 Success requires patience, continuous learning and continuous innovation and
embracing new technique .
 Success in the sector cannot be achieved without significant investment in
research, infrastructure development, grants, aids and continuous training.
 If VOCEA chooses to pursue that route anyway, the corporation could mitigate risk
using tools such as the WBG’s MIGA political risk insurance, or seek local currency
financing and currency hedging through the WBG’s IFC using insurance products
such as:
 MIGA’s War, Terrorism & Civil disturbance Cover
 MIGA’s breach of contract cover
 Expropriation cover

8. APPLYING IMPACT INVESTMENT/ESG
INVESTING PRINCIPLES
 VOCEA’s choice of Organic agriculture is based on its principle of impact investing and
environmental, social and governance investment impact.
 The principle aims of organic production and processing is
 To produce food of high quality in sufficient quantity.
 To interact in a constructive and life-enhancing way with natural systems and cycles.
 To consider the wider social and ecological impact of the organic production and processing
system.
 To encourage and enhance biological cycles within the farming system, involving micro-
organisms, soil flora and fauna, plants and animals.
 To develop a valuable and sustainable aquatic ecosystem.
 To maintain and increase long term fertility of soils.
 To maintain the genetic diversity of the production system and its surroundings, including the
protection of plant and wildlife habitats.

9. APPLYING IMPACT INVESTMENT/ESG
INVESTING PRINCIPLES
 To promote the healthy use and proper care of water, water resources and all life therein.
 To use, as far as possible, renewable resources in locally organised production systems.
 To create a harmonious balance between crop production and animal husbandry.
 To give all livestock conditions of life with due consideration for the basic aspects of their
innate behaviour.
 To minimise all forms of pollution.
 To process organic products using renewable resources.
 To produce fully biodegradable organic products.
 To produce textiles which are long-lasting and of good quality.
 To allow everyone involved in organic production and processing a quality of life which meets
their basic needs and allows an adequate return and satisfaction from their work, including a
safe working environment.
 To progress toward an entire production, processing and distribution chain which is both
socially just and ecologically responsible.

10. APPLYING IMPACT INVESTMENT/ESG
INVESTING PRINCIPLES
 These aims are in line with the WBG’s Sustainable Development Goals (SDGs)
 VOCEA also intends to apply the fair-trade principles and gain the Fair-trade
certification in its partnership with local farmers and aggregators it will
partner with in the course of the investment
 Fair Trade is a trading partnership, based on dialogue, transparency and
respect, that seeks greater equity in international trade. It contributes to
sustainable development by offering better trading conditions to, and
securing the rights of, marginalized producers and workers – especially in the
South.
 Fair Trade organizations have a clear commitment to Fair Trade as the
principal core of their mission. They, backed by consumers, are engaged
actively in supporting producers, awareness raising and in campaigning for
changes in the rules and practice of conventional international trade."

11. APPLYING IMPACT INVESTMENT/ESG
INVESTING PRINCIPLES
 Fair Trade is more than just trading:
 It proves that greater justice in world trade is possible.
 It highlights the need for change in the rules and practice of conventional
trade and shows how a successful business can also put people first.
 It is a tangible contribution to the fight against poverty, climate change and
economic crisis.
This proves that the investment strategy of VOCEA aligns with the ESG principle
and impact investing.

12.  https://www.sciencedirect.com/science/article/pii/S0308521X00000603
 https://guardian.ng/business-services/nigeria-remains-top-investment-
destination-says-rmbn/
 https://wfto.com/fair-trade/definition-fair-trade
 Exploring_Investment_Opportunities_in_the_Agribusiness_Value_Chain_and_it
s_Challenges_2019.pdf
 Financing_for_Development_at_the_WBG_Brochure.pdf
 Financing_for_Sustainable_Development_Report_2019.pdf