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Investment Criteria

Potential candidates need to fulfil a range of conditions:

Measurable impact on smallholders

The project needs to contribute to raise smallholder farmers income and/or employment creation within agri-business medium, small and micro enterprises.

Status

Be a privately owned (more than 50%) company.

Activity

Be active in the agricultural/ forestry value chain integrating smallholders.

Sponsors’ commitment

Skin in the game i.e. sponsors are investing themselves in the projects.

Location

Focus on activities covering Africa, Latin America & Asia (mostly in companies located or proceeds to be used in countries from the DAC list).

Business plan

Be able to present the company and the project (to be financed) in a comprehensive way, including the financial projections.

Track record

The company/ sponsors must show a credible professional track record (2-3 years), demonstrating strong commitment to date, and a capacity to deliver (no seed rounds).

Financial sustainability

The company must be able to attain financial sustainability in the midterm (i.e. ultimately able to generate sufficient revenues to support debt service and provide adequate returns to investors under reasonably adverse variations in underlying assumptions).

Monitoring

Be ready to put in place appropriate monitoring, evaluation and results measurement arrangements to demonstrate the project’s contribution to the achievement of the development goals.

Sustainability

Comply or be ready to comply with international best practices, such as Good Agricultural Practices (GAP) and International Finance Corporation (IFC) Performance Standards 2012.

Investment Decision

The AgriFI investment process consists of a two-stage investment committee approval, including an in-depth legal, technical, financial and market due diligence, through both desktop study and field visit. The AgriFI Investment Committee includes members of the European DFIs and the European Commission.