Project Description

AATIF, as an Impact Investing Fund, seeks to realise the potential of Africa’s agricultural production, manufacturing, service provision and trade for the benefit of the poor. The Fund aims to provide additional employment and income to farmers, entrepreneurs and laborers alike. Increasing productivity, production, and local value addition by investing in efficient value chains and providing knowledge transfer are paramount. In this context, a dedicated effort will especially be made to support out-grower schemes.

The investment fund is complemented through a Technical Assistance Facility that provides grant funding for projects to strengthen the developmental aspects of individual investments. This Technical Assistance Facility is managed under a service agreement by the CFC. Through its independent Social and Environmental Compliance Advisor from ILO, AATIF is committed to closely monitor the social and environmental impact of each investment.

Current status

So far AATIF has provided finance for four farming operations and for six credit lines for financial intermediaries and regional banks that want to enter the local market for agricultural SME lending. A first conducted impact assessment (supervised by the CFC as TA Facility Manager) indicates a strong impact through AATIF funding of a commercial farm in Zambia: within four years the farm was able to increase locally marketed food production from 4,000 MTs to 14,000 MTs. In the same period more than 100 additional farm jobs were created. In addition the AATIF TA Facility completely refurbished a nearby school and provided a school bus for safe transport from farm premises to the school. This is already been reflected in increased pupil attendances and better exam results. The details of action taken by AATIF can be made available upon request.

Organization: Africa Agriculture and Trade Investment Fund (AATIF) Project: CFC/2012/01/0268FA
Location: Africa Commodity: Miscellaneous
Total Cost: USD 183,000,000 (current fund size) CFC Financing: USD 2,000,000 (Equity – First Account)
Co-financing: Main other current investors are KfW and Deutsche Bank. The associated grant based Technical Assistance (TA) Facility is being financed by the German Ministry for Development Cooperation and Economic Development (BMZ)

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