29 July 2015
Promoter – Financial Intermediary
SPECIAL PURPOSE ENTITY(IES)/FUND
The project is an equity participation of up to EUR 15m in Agri-Vie Fund II Limited. The fund is a specialised, closed-end food and agribusiness private equity fund with an investment focus on Sub-Saharan Africa, including South Africa for up to 25%, with a strategic focus on southern and eastern Africa and a selective presence over time in west and central Africa if justified by opportunity flow. The fund's anticipated target size is USD 175m.
The fund will mostly provide equity and quasi-equity funding to high-growth companies operating in the valued-added components of the food and agribusiness value chain (e.g. processing, distribution, marketing, services, etc.) and coupled with some vertically integrated primary agriculture exposure. At target size, the fund intends to finance approximately 10-14 companies.
The food and agribusiness sector represents more than 40% of the GDP of Sub-Saharan Africa and employs more than 60% of the labour force of the region. By supporting private sector development in agribusiness, the fund is expected to deliver financial return and social benefits (including job creation, growth and economic diversification of rural areas, sustainable raw material supply, and increase of the output/export base of economies in the region).
Proposed EIB finance (Approximate amount)
EUR 12 million
Total cost (Approximate amount)
EUR 160 million
The fund's operational guidelines will provide for environmental and social due diligence of all projects, according to guidelines acceptable to the EIB.
The fund will be required to ensure that implementation of the underlying projects is done in accordance with the EIB Guide to Procurement.
Signed - 20/01/2017