DfID Blended Partnerships investments in Tanzania

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Client African Agricultural Development Company (AgDevCo)
Dates 2014
Service(s)Strategy & Finance, Transaction Advisory
AgDevCo is a social impact investor and agribusiness project developer, operating in the African agriculture sector. CEPA has worked with AgDevCo on a number of projects, carrying out work to identify, assess the feasibility and support the structuring of debt and equity investments in East and Southern Africa.
One recent example was our work on the DFID Blended Partnerships project, in which CEPA worked with AgDevCo to secure investment in three agricultural projects in Tanzania. We first helped to identify and assess potential pipeline investment opportunities in order to develop an initial ‘long list’ of suitable projects.
CEPA then conducted due diligence and detailed analysis for a shortlist of selected projects. We assessed the corporate viability of the businesses, the capacity of project sponsors, the projects’ expected development impact, and any perceived risks – among other things. This involved site visits and meetings with sponsors, both in the UK and in Tanzania.
Finally, CEPA advised AgDevCo on which projects to take forward and on the financial structure of its investments. This culminated in AgDevCo’s choice to invest in three projects: £6.7 million to Kilombero Plantations (East Africa’s leading rice producer) to help finance a rice gasification plant; £2.5 million to support production at Tanzanian Tea Packers’ Katumba Tea Factory; and £3.3 million in Equity for Tanzania (a financial leasing business that provides equipment finance for small and medium size businesses in Tanzania).