http://www.fao.org/in-action/forest-landscape-restoration-mechanism/en/ Different investment approaches and opportunities in forests and landscapes • Investors and donors discuss the best way forward to ensure an enabling environment for investment • A dialogue between investors, donors, business champions, project developers and enabling public institutions © FAO: http://www.fao.org

1. Session 3: Investors and Donors Panel: Approaches, Challenges and Partnerships for Investing in FLR
Time Content Speakers
15:30 Session introduction
Facilitator: Anders Nordheim, UNEP
Co-facilitator: Ludwig Liagre, GM-UNCCD
SUB-SESSION 1: PANEL OF INVESTORS AND DONORS
 Claude Mazimpaka, AEC Loan Fund
 Elisaveta Kostova, GIZ - DeveloPPP
 Alex Kanyankole, BRD
 Jamal Eddine El Jamali, CAM
 Samuel Ndonga, Deutsche Bank / AATIF Fund
 Boris Spassky, Mirova / LDN Fund Project
 Pascal Martinez, GEF
 David Odongo, EADB
 Ademola Braimoh, WB
15:35
• Quality and bankability criteria
• Investment products
• Success stories
• Partnerships and alliance
SUB-SESSION 2: FACILITATED DISCUSSION ON THE WAY FORWARD
16:30
The discussion will be structured around 3 clusters
of panelists:
• Investors and donors with experience in FLR in
the region
• Investors and donors with experience in FLR
interested in developing operations in the region
• Investors and donors from the region willing to
integrate FLR in their investment portfolio

2. AEC Overview
May 2017

4. • Tailored 1-on-1 support
• Formal training
Global Mentoring
Technical Assistance Access To Capital
Capacity Building
• Technical & functional
expertise
• In-country for 1-3 months
• Financial management
• Accounting systems
• Branding/Marketing
• Human Resources
• Below market rate loans
• 10% loan declining balance
AEC’s Core Programming

5. Critical example of an SME’s
bookkeeping

6. The financial matrix (Cashflow )
Financial matrix RWA
Company: Names: Date: Signature:
Currency: Rwf
January February March April May June July August September October November December
Total
…...….
Sales (A)
TOTAL (A)
Costs for raw materials (B)
TOTAL (B)
Gross result (C) (Total A - Total B)
Operative expenses (D)
Employees salaries (total)
Entrepreneur's salary
Social Security
Taxes
Rent (premises)
Rent (machines)
Other rental costs
Maintenance and repair
Car costs, petrol, etc.
Insurance costs
Governemental fees & costs
Energy (electricity, air cond, etc.)
Transportation costs
Advertisement costs
Legal costs (Law yer, etc.)
Telephone costs
Other Taxes
Reserve
Amortisation of fixed assets
Loan amortisation BPN
Loan Interest BPN
Total operative expenses (D)
Net result (Total C - Total D)
А
B
D

7. I. The bankability criteria for AEC Investment schemes
include but not limited to:

8. II. AEC Product Profile and conditions
African Entrepreneur Collective Rwanda Trustee Ltd (AEC RT)
offers financing support through capital leasing and project
Finance to entrepreneurs participating in the Inkomoko
business acceleration program.
 The following criteria must be meet by a company in order to
be eligible for investment:
- Must be registered as a business in Rwanda;
- Must be an Inkomoko client; AEC Business accelerator service;
- Must have financial information available (actuals cash flow
and projections) .
 The capital lease and project finance offered by AEC RT has
the following terms:
- Interest Rates 10% declining balance
- Tenor: up to 5 years
- Flexible repayment plan depend on seasonality e.g.: Monthly,
quarterly, Half year, yearly etc. with grace period if required.

9. 9
II. Successful FLR investment from AEC portfolio.
Constructio
n
9%
Education
9%
Energy
4%
Environmen
t
7%
Agriculture/
Food
40%
Manufactur
ing
11%
Services
20%
INDUSTRY BY NUMBER OF
BORROWERS
Construction
12%
Education
7%
Energy
4%
Environment
3%
Agriculture/F
ood
59%
Manufacturi
ng
8%
Services
7%
INDUSTRY BY AMOUNT INVESTED

10. Social Impact Results:
• 15 rice cooperatives; 8,000 farmers
• Increase in farmer yield: 4x
• Created 31 permanent; 30 temp
jobs
Entrepreneurs Creating Jobs and Improving Lives
HPS and B LTD processes rice
and impacts thousands of farmers
AEC Support:
• Business plan
• Investor readiness
• Analyzed agriculture operations
• Built new accounting systems
• 2 mentors with expertise in agriculture financing
• ~142k USD in direct financing repaid (4 loans); Avg 6% interest as
compared to 20% interest at commercial bank
Business Growth Results:
• From 30% to 80% capacity
• Secured $600k in external
investments

11. Social Impact Results:
• Working with over 1,000 farmers;
helped launch 200 women farmers
• Profit-sharing with farmers
• Created 34 permanent; 332
seasonal jobs in remote areas
5 Coffee Washing Stations
AEC Support:
• Business plans & websites
• Built new accounting systems
• Partnership with local
exporter
• Increasing access to local and int’l markets
• Provided 240k USD in direct financing
Business Growth Results:
• 3 of 5 businesses launched;
now starting 2nd & 3rd seasons
• 2 of 5 businesses grew by 50%
since working with AEC
Entrepreneurs Creating Jobs and Improving Lives

12. Thanks!!

13. BRD AGRICULTURE
FINANCING
AND LAND SCAPPING

14. 1. Introduction.
The Development Bank of Rwanda (BRD), acts as the Government of
Rwanda’s investment arm and through the new strategic plan, its financial
development objectives are designed to focus on the key priority sectors
of the economy which covered the following:
 Agriculture (modernization and mechanization primary farming),
covering irrigation;
 Exports (mainly tea and coffee farming);
Other key sectors
 Energy;
 Housing;
 Education;
 Special projects and Infrastructure

15. 2. What has BRD done so far in agric
financing
Portfolio distribution to agriculture Sub-sector
The financing is distributed in refinancing (MFIs and SACCOs), Equity, LC and Direct Loans
2010 2011 2012 2013 2014 2015
Amount(RWF) Amount(RWF) Amount(RWF) Amount(RWF) Amount(RWF) Amount(RWF)
PrimaryAgriculture 990,532,713 1,478,407,034 2,206,577,663 2,427,235,429 2,669,958,972 2,936,954,869
PrimaryproductioninCoffee 396,077,520 591,160,477 882,329,070 970,561,977 1,067,618,175 1,174,379,992
PrimaryproductioninTea 1,973,487,449 2,945,503,656 4,396,274,113 5,332,105,201 6,447,927,651 7,116,922,928
Livestockandrelatedinvestment 1,378,989,329 2,058,193,029 3,071,929,894 3,221,930,044 3,371,930,202 3,060,820,191
Agro-industries 5,658,895,212 8,446,112,257 12,606,137,697 13,866,751,467 12,367,028,802 15,087,775,138
CoffeeProcessingplants 1,287,402,012 1,921,495,540 2,867,903,791 3,154,694,170 3,312,428,879 3,378,677,456
TeaFactories 2,053,747,490 3,065,294,761 4,575,066,807 4,675,067,008 4,575,066,807 4,575,066,807
CoffeeSeasonalCampaign 970,494,839 1,448,499,760 2,161,939,940 2,378,133,934 2,615,947,327 2,877,542,060
TOTALPORTFOLIOFORAGRIC 14,709,626,564 21,954,666,513 32,768,158,975 36,026,479,230 36,427,906,815 40,208,139,442
Sector

16. 3. What has BRD done so far in agric financing
17 cooperatives financed
One of the tea
Plantations
financed by the
Bank

17. 4. What has BRD done so far in agric financing
24 Coffee Plantations financed so far totaling to 1,020 ha
Coffee Plantation

18. 5. Forest financed by BRD

19. 6. New Outlook and Approach to Agric. Financing
Bank Equity
Lines of
Credits/DFIs
Development
Agencies and
GoR
MFIs and
SACCOS
Coops
Individuals
and Cos
- Agric
Mechanization
- Risk mitigation
- Agro
processing
BRD Financing Model

20. 7. BRD Products/Facilities
 Development Loans
 Equity Investments
 Refinancing (Esp. MFIs)
 Short term basis
 Medium term
basis
 Long term basis
Trade Finance:
 Over Invoicing
 Under Invoicing
 Multiple Invoicing
 Short shipping
 Over shipping
 Phantom Shipping
 Etc.,
TA/Advisory
 Project Identification
and Scoping
 Feasibility Assessment
 Development Funding
 Financial Structuring
 Management guidance

21. 8. Challenges in Agric financing
 Low capacity to prepare bankable Business plans;
 Management issues within cooperatives;
 Poor agricultural techniques;
 Climate change affecting the agriculture production;
 High risk perception;
 Coordination and monitoring of Agriculture related Program
Lending schemes;
 Price volatility for agriculture commodities;
 High transaction costs;

22. 9. Possible solutions
 Mobilization of concessional credit lines for agriculture projects;
 Providing support to MFIs, SACCOs at local levels;
 Infrastructure investment by the Government;
 Land consolidation scheme
 Agriculture technical support to farmers;
 Insurance schemes;
 Support to organized value chain activities;
 Support to cooperatives.

23. THANK YOU

24. Unleashing Business Opportunities for Sustainable Landscapes
Forest & Landscape Investment Forum
Group CAM, an institution
sustainably committed in
financing small, medium and
large farmers
Session3: Investors and Donors Panel
Approaches, Challenges and Partnerships
for Investing in Forest and Landscape Restoration

25. Forest & Landscape Investment Forum
GCAM financing approach
GCAM’sinvolvementinfinancingtheagriculturalsectoraccordingtothenationalstrategy«Plan
MarocVert»
Farms characteristics Financing System
20%
40%
Farms that are consistent with the banking rules
Micro-farms developing off-farm economic
activities and that are not consistent with the
banking rules
40%
Small and medium farms that rely mainly on
agriculture but are not consistent with the
banking rules
Moroccan farms typology
1,5 Million units
PILLAR1PILLAR2

26. Forest & Landscape Investment Forum
GCAM was in charge of managing the Catalyst Fund project emerged from the cooperation between Moroccan Ministry of
Agriculture and Millennium Challenge Account. It aimed at accompanying small and medium farmers in olive tree plantation and
valorization. This project contributed to conversion from cereal crops to a more resilient and adding value production.
20 EIG
188 cooperatives
6 539 members
61 321 ha
 GCAM financed investment costs (44 millions US $) of
modern units of olive storage, crushing and packaging
 GCAM allowed overdraft facilities
 GCAM gave advances on purchase of (raw) goods (olives)
 GCAM financed operating costs
 GCAM financed maintenance costs of olive trees planted
for free by Ministry of Agriculture & Millennium
Challenge Corporation as well as intercrops and small
breeding before first harvest
An example of Tree Plantation and Landscape Restoration
project successfully financed by GCAM – Olive Tree Project

27. Forest & Landscape Investment Forum
The GCAM, a transformational tool
Sources of funding Funded projects
Family farms
Agro-Industries
Agribusiness
&
Large farms
Medium farms
GCAM financing mechanism
Players of the Moroccan agricultural ecosystem
Interprofessional associations Technical, and financial education of
farmers
IT systems, scoring
systems, traceability
Distribution network
Rural and agricultural
expertise
ARDI
HR strategy, experts
network
Risk mitigation levers
Traditional credit (20%)
Meso-credit (40%)
Micro-credit (40%)
Crédit Agricole
Tamwil el Fellah
GCAM’s own capital/Savings
collection
Development Finance
Institutions and other
donors
Incentives, organization and technical
education

28. Forest & Landscape Investment Forum
The GCAM’s current network of African financial partners
Senegal
AMIFA
CNCAS
Rwanda
BRD
Tanzania
TADB
Madagascar
UNICECAM
Nigeria
BoA
NIRSAL
Zambia
DBZ
Ghana
ADB
Ethiopia
DBE
Niger
BAGRI
Ivory
Coast
Morocco
GCAM
Mali
BNDA

29. THANK YOU
29

30. LAND DEGRADATION NEUTRALITY FUND
An innovative fund project dedicated to sustainable land use and
natural capital
Kigali, May 2017
Strictly confidential - This commercial document is intended for Professional clients only in accordance
with MIFID

31. Foreword
31
Parties involved
Established in 1994, the United Nations Convention to Combat Desertification (UNCCD) is the
sole legally binding international agreement linking the environment, poverty and
development to sustainable land management in the drylands. The UNCCD is particularly
committed to a bottom-up approach, ensuring the participation of local communities in
combating desertification and land degradation. The secretariat of the Convention also
facilitates cooperation between developed and developing countries, particularly regarding
knowledge and technology transfers for sustainable land management practices. The Global
Mechanism (GM) is an organ of the United Nations Convention to Combat Desertification
(UNCCD), mandated to support UNCCD country Parties in the mobilization of resources for its
implementation. As the operational arm of the Convention, the Global Mechanism supports
countries to translate the Convention into action and to achieve Land Degradation Neutrality
at the national level.
Mirova, the Responsible Investment subsidiary of Natixis Asset Management, develops an
engaged approach aiming to combine value creation and sustainable development.
Mirova’s philosophy is based on the conviction that integrating sustainable development
themes can generate solutions that create value for investors over the long term, not only
thanks to a better appreciation of risks, but also by identifying favourable investment
opportunities in a changing world. Mirova offers a global responsible investing approach with
a single offer revolving around 5 pillars: equities, bonds, infrastructure, Impact investing,(1)
voting and engagement. Mirova has €6.7 bn in AuM and €40 bn in voting and engagement.
The company brings together 68 multi-disciplinary experts, specialists in thematic investment
management, engineers, financial and ESG(2) analysts, specialists and experts in socially
conscious finance and project financing.
Source: Mirova as of 30/09/2016
(1) Impact Investing: management having a strong social or environmental impact.
(2) ESG: Environnemental, Social & Gouvernance
Party PresentationRole in the
project
Co-promoter
- Initial Concept
- Enabling environment
- Institutional coordination
Co-promoter
- Fund strategy
- Business Model
- Structuring
- Fund management
31

32. LAND DEGRADATION
32
A global challenge with severe consequences
What is at stake?
Poor land management practices, often fueled by exploitation for short-term economic gains instead of favouring long-
term sustainability, have led to the loss of more than 25% of the world’s arable land in the last two decades.
2billions hectares of land are degraded worldwide, and we continue to degrade another 12 million hectares of
productive land every year
“Land and natural capital suffer from over-exploitation and under-investment”
Why is it important?
As well as the direct economic value of using land and its resources, land-based ecosystems and their
management can have substantial consequences:
Climate change
Poverty Social instability
and conflicts
MigrationsBiodiversity
loss
Food security
pressure
32
Increasing awareness that the cost of inaction is significantly higher than the cost of action led to the emergence
of the Land Degradation Neutrality (LDN) concept, and its inclusion in the SDGs (Target 15.3):
Land Degradation Neutrality is a state where the amount and quality of land resources necessary to
support ecosystem functions and services and enhance food security, remains stable or increases

33. THE LDN FUND PROJECT
A mission-driven impact fund project
Environmental and Social standards and impact
• The Fund will only consider projects that can make a significant contribution to LDN while complying with robust
Environmental & Social (E&S) standards and generating positive impact
Financial additionality
• The LDN Fund will offer financing solutions that are not readily available in the market by providing patient
long-term finance and strategic benefits in ways that other investors or banks might not: risk-adjusted
interest rates, limited recourse, longer maturity, longer grace periods than local commercial banks, etc.
• The Fund intends to initiate or participate to blended finance schemes by (i) actively collaborating with DFIs
and MDBs and (ii) on-boarding local and international commercial banks in projects
Financial return
• The Fund will invest in profitable projects.
• Sustainable agriculture and forestry can potentially offer attractive investment opportunities due to the rising
global demand
• Using improved agronomic practices helps to increase productivity, product quality and generate better returns
33
‘To be a source of transformative capital bringing together public
and private investors to fund triple bottom line projects that
contribute to Land Degradation Neutrality’
The LDN Fund project’s mission:

34. KEY SECTORS
• Sustainable agriculture as a high-impact sector offering the
possibility of making a real difference on the ground
• Sustainable forestry
• Other LDN-related sectors on an opportunistic basis, such as
green infrastructure and land reclamation or eco-tourism
GEOGRAPHICAL SCOPE
• Focus on developing countries where capital mobilisation is crucial
• Developed countries on an ancillary basis
INVESTMENT TYPES
60%
20%
20%
Target
capital
allocation
80%
20%
Target
capital
allocation
LDN FUND PROJECT STRATEGY
Producing impact and financial return
PROGRAMMATIC APPROACH
(well-suited for agriculture and outgrower
schemes)
INTEGRATED APPROACH
(well-suited for forestry and green infrastructure
projects)
34
MOU WITH GCAM SIGNED DURING COP22
Joint offer in some African countries combining long-term finance and assistance to local banks to reach smallholders
Phase 0 - Kick off
LDN FUND
Cash
(Loan)
PROJECT
OPERATOR
Small
holders
Small
holders
Small
holders
Small
holders
Small farmers and cooperatives
SERVICE
PROVIDERS
Cash
(payment for services)
OFF-
TAKER
Soft
Commo
Cash
(Debt
service)
LDN FUND
PROJECT
OPERATOR
TECHNICAL
PARTNER
OFF-
TAKER
Tree planting,
maintenance, harvest
Cash
Cash
(Loan / equity)
Cash
(Debt service /
Dividends)
Timber

35. Disclaimer
This commercial document is intended for Professional clients only in accordance with MIFID. If no and you receive this document sent in error, please destroy it and
indicate this breach to MIROVA.
MIROVA
Regulated by AMF under n°GP 02-014
Limited liability company - Share capital € 7 461 327, 50
RCS Paris n°394 648 216
Registered Office: 21 quai d’Austerlitz – 75 013 Paris
Mirova is a subsidiary of Natixis Asset Management
- Under Mirova’s social responsibility policy, and in accordance with the treaties signed by the French government, the funds directly managed by Mirova do not
invest in any company that manufactures sells or stocks anti-personnel mines and cluster bombs.
- The fund project has not been authorized by any supervisory authority.
- This Presentation in no way constitutes an offer or a sales promotion to a person regarding whom it would be illegal to make such an offer. This Presentation
may not be used as an offer or a sales promotion in countries or in conditions where such offers or promotions have not been authorized by the competent
authorities. Each investor must ensure he is authorized to invest in the Fund project.
- Investments in the fund are mainly subject to loss of capital risk.
- This presentation (the “Presentation”) is being circulated as an information-only document and does not constitute an offer, a proposal, or a solicitation to
investors to invest in the funds described in this document and managed by Mirova nor does it form the basis of, or constitute, any contract. These products and
services do not take into account any particular investment objectives, financial situation nor specific need. Mirova will not be held liable for any financial loss or
decision taken or not taken on the basis of the information disclosed in this document, nor for any use that a third party might make of this information. This
Presentation in no way constitutes an advice service, in particular an investment advice. In any case, you are responsible for reading regulatory documents of
the fund and collecting any legal, accounting, financial, or tax consultancy service you may consider necessary, in order to assess the adequacy of your
constraints to investment and its merits and risks. This document is a non-contractual document and serves for information purpose only. This document is
strictly confidential and it may not be used for any purpose other than that for which it was conceived and may not be copied, distributed or communicated to
third parties, in part or in whole, without the prior written consent of Mirova. This Presentation may not be used in some juridictions where such offers or
promotions have not been authorized by the competent authorities. Each investor must ensure he complies with these requirements and prohibitions. No
information contained in this document may be interpreted as being contractual in any way. Information contained in this Presentation is based on present
circumstances, intentions and beliefs and may require subsequent modifications. No responsibility or liability is accepted by Mirova towards any person for
errors, misstatements or omissions in this Presentation or, concerning any other such information or materials, for the adequacy, accuracy, completeness or
reasonableness of such information. While the information contained in this Presentation is believed to be accurate, Mirova expressly disclaims any and all
liability for any representations, expressed or implied, with respect to this Presentation or any other written or oral communication to any interested party in the
course of the preparation of information concerning the Fund. Prices, margins and fees are deemed to be indicative only and are subject to changes at any time
depending on, inter alia, market conditions. Mirova reserves the right to modify any information contained in this document at any time without notice. More
generally, Mirova, its parents, its subsidiaries, its reference shareholders, the funds MIROVA manages and its directors, its officers and partners, its employees,
its representative, its agents or its relevant boards will not be held liable on the basis of the information disclosed in this document, nor for any use that a third
party might make of this information. This document consists of a presentation created and prepared by Mirova based on sources it considers to be reliable.
However, Mirova does not guarantee the accuracy, adequacy or completeness of information obtained from external sources included in this document.
Contacts:
Philippe Zaouati, Gautier Quéru
CEO, Mirova Team Leader, Mirova
Philippe.Zaouati@mirova.com Gautier.Queru@mirova.com
35

36. GLOBAL ENVIRONMENT FACILITY
Investments in Forest Landscapes and key figures of
implementation
Pascal Martinez, Sr Climate Change Specialist
Forest Landscapes Investment Forum
16-17 May 2017, Kigali, Rwanda

37. History and achievement of GEF support for
forests
• Multilateral fund, serving 5 environmental
Conventions (Climate, Biodiversity, Desertification…)
• Country driven, trough 18 Implementing agencies
• Since 1991, 411 forest projects and programs
• Investments:
$2.7 billion + $13.8 billion (co-financing)
• Improving local people livelihood

38. GEF investment on forests in GEF-6
• Period 2014-2018
• 44 projects and programs
• Investments:
$711 million + $4.3 billion (1/6 co-financing)
• Utilized 89% of the $250 million envelope
21
13
8
12
0
5
10
15
20
25
1
Regional Distribution by
number of countries
Africa Asia ECA LAC

39. Examples of recent programs
relevant to East Africa
• The Restoration Initiative: contribution to Bonn Challenge
(Kenya, Tanzania…): $50 M (+$200 M cofinance)
• Taking Deforestation Out of Commodity Supply Chains: $45 M
(+$440 M cofinance)
• Moringa Agro-forestry Fund for Africa: (Kenya, Tanzania,
Zambia…): $13 M (+$50 M cofinance)
• National projects, ex. Restoring Degraded Forest Landscapes…
(Eritrea): $9 M (+$23 M cofinance)
Several financing modalities: mainly Grants but
also blended finance, involving the private
sector

40. GEF-7 under preparation and forests
• New cycle 2018-2022
• Building on previous success
• Still under discussion with member countries
• More integration -> Impact programs (IP)
• In particular:
- Forest Landscape Restoration
- Commodity supply chains
• Same ration of financing sought (around 25%)

41. Thank you for your attention!

42. Unleashing Business Opportunities for Sustainable Landscapes
Forest & Landscape Investment Forum
Approaches, Challenges & Partnerships
for Investing in Forest & Landscape
Restoration
Investors/Financiers Perspective
David Odongo - EADB

43. Forest & Landscape Investment Forum
A. Basic Supporting Information for Project
1. Back-ground Information
 Legal status & ownership
2. Market Analysis
 Demand/Supply trends
 Market Size & marketing plan – E.g. Off-take
Contracts
 Competition/Competing projects/products
3. Technical Aspects
 Production/Operations – e.g. project scale;
variety & justification; maturity period; tree
density per acre/Ha; Husbandry details; Harvest
plan; Equipment/machinery requirements
 Organization & Management
 Details of management/managers
 Project implementation schedule
4. Financial Aspects
 Total estimated costs
 Proposed financing plan
 Projections – Key Liquidity (Solvency) & Debt
Service Ratios; IRR/ROI
5. Risk Assessment
 Anticipated Weaknesses/Risks of project
 Proposed mitigation
6. Environmental, Social & Gender
Issues
 ESIA & Evidence of approval by statutory
authority
 ESMP during project implementation

44. Forest & Landscape Investment Forum
B. Main Approaches
Usually Debt (Loan) or Equity
1. Key Factors for Debt Considerations:
 Tenor of Loan; Moratorium; Pricing (Rate); Other Fees;
 Collateral (Asset/Cash-flow basis);
 Purpose/ Application of loan funds (E.g. land acquisition; machinery/equipment; infrastructure?)
2. Key Factors for Equity Considerations:
 Invitation to take up shares; Nature of equity availed by project sponsor – Ordinary/Preferential?
 Prospectus by sponsors indicating anticipated returns to investors
 Indications on level of participation permitted in management – e.g. board representation; voting
rights.
 Proposed dividend policy; Procedure for exit if applicable

45. Forest & Landscape Investment Forum
Case Study Examples
1. Loan
 Profile of Bank Client: SME engaged in Agroforestry; Note
existence of complementary income generation activities.
 Facility & Tenor : Equiv. USD 500,000; LTL - 10 Years (12
month moratorium on Principal repayments)
 Documents submitted: Evidence of site ownership; Loan
Application in prescribed format
 Application of Funds: Equipment/Machinery;
Complimentary Activities – Commercial Apiary
 Risk Mitigation: Facility Agreement; Charge over Sponsor's
property; Debenture; Commercial Insurance – Tree Cover –
trees with commercial value identified by insurer &
assigned value; annual policy renewal with inspection
report & tree audit by insurer; Additional PRC – during high
risk period may be necessary through ATI/AGF.
2. Equity
 Profile of Bank Client: PE firm – large scale commercial
agroforestry
 Facility & Tenor : Placement of USD 350,000 funds in Equity
(Ordinary Shares); Subsequent conversion to Preferential
Shares with fixed dividend over 5 Years & exit at Year 5.
 Documents submitted: Investment prospectus;
 Application of Funds: Large scale commercial agroforestry
establishment with details of plantation sites –
owned/concessions; Working Capital
 Risk Mitigation: Share Agreement; Debenture; Assignment
of Agreements/Concessions; PRC – through ATI/AGF –
Portfolio cover option.
Ordinary Shares (OS) - the shares issued to members of a limited company. OS represent the equity/risk capital of a company. They carry no prior rights in terms of entitlement to dividend or return of capital on a winding-
up. Ordinary shares generally carry full voting rights.
Preference shares (PS) - entitle the holder to a stipulated fixed rate return in the form of a dividend (E.g. the fixed rate return to which holders of loan stock are entitled), whereas dividend declared in respect of OS is purely
a matter for the directors & subject to approval by the shareholders in general meetings. In the event of a winding-up, holders of PS are entitled to be paid before OS.

46. THANK YOU
46

47. FOREST AND LANDSCAPES
INVESTMENT IN AFRICA –
PERSPECTIVES FROM THE WORLD
BANK
Ademola Braimoh

48. Good Quality Bankable Projects
• Strong linkage to the World Bank’s twin goals of ending extreme poverty and
boosting shared prosperity.
• Contributes to the country’s development plans and climate change goals e.g.
the NDC commitments
• Support rural communities to better manage forests, reduce deforestation and
curtail unsustainable agricultural expansion
• Enhance benefits rural communities receive from forestry, agriculture, and
wildlife; and reduce their vulnerability to climate change
48

49. Characteristics of investment products
• Innovative mix of funding. For instance, Zambia Integrated Forest Landscape
Project (ZIFLP) has a combination of an IDA credit, a GEF grant, and a BioCF TF
grant all supporting the implementation of activities in a landscape approach.
• Fully aligns with the country’s vision for low carbon development pathway. The
vision statement of Eastern Province is “to improve rural livelihoods in Eastern
Province by reducing deforestation and forest degradation using a low emission
pathway through local community participation by 2030.”
• Private sector financing window to promote deforestation-free agricultural
value chain
• Implemented at a jurisdictional level. National or jurisdictional governments
need to consider the trade-offs and synergies between different land uses that
may compete in a jurisdiction—such as agriculture, energy, and forest
protection—and successfully identify integrated solutions that serve multiple
objectives.
49

50. Minimum project design requirements
• Net emission reduction. Project must aim to have a net emission reduction in the
jurisdictional project area through 2030
• Public private partnership. Project must aim to deliver emission reductions, at least in
part, through an agreed PPP between the government and one or more private sector
entities.
• Improve the enabling environment. Utilize Technical Assistance (TA) funds to improve
the ‘enabling environment’ for emission reductions delivery. Strengthening
institutional arrangements, developing benefit sharing mechanisms, leveraging
additional investments, building implementation capacity, MRV, etc
• Livelihoods and low C investment e.g. for ZIFLP covering agriculture, forests, wildlife
• Results-based payments. Payments will become due upon verified emissions. The
payments should be used as an incentive to sustain low emissions trajectory. Emissions
reductions from Ag, Energy and REDD could qualify for results based payments (not
limited to REDD) provided there is independent verification and monitoring.
50

51. THANK YOU!
abraimoh@worldbank.org
51