Agricultural development strategy financing for Africa and South Asia

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Client Large agricultural development foundation
Dates 2011
Sector(s)Agriculture
Service(s)Policy & Economics, Strategy & Finance

CEPA supported the Agricultural Development team of one of the world’s largest private foundations during the ‘refresh’ of its agricultural development strategy. A team of CEPA consultants:

  • provided analyses of foreign direct investment flows to agriculture sectors in Sub-Saharan Africa;
  • advised on the potential use of innovative financing mechanisms (including advanced market commitments and solidarity taxes) for achieving agricultural development outcomes;
  • developed investment profiles for five African country case studies, detailing their public expenditure, domestic bank lending and foreign investments in agriculture; and
  • contributed to the foundation's staff’s initial conclusions about the potential for the Foundation to invest and work effectively in the case study countries.

We also developed a cost model to inform the foundation’s Agricultural Development team about the total incremental investment needed (from all sources) to achieve its new strategy. The model was created to inform the foundation’s understanding of:

  • the ‘total’ and ‘per farm’ investment need in both the areas the foundation invests in, and in the areas it doesn’t invest in, but which are expected to influence the impact of the strategy;
  • its portfolio allocation in terms of investments in its strategic initiatives and sub-initiatives; ‘anchor’ countries and priority products/commodities across Sub-Saharan Africa and South Asia; and
  • likely and/or feasible sources of funding to meet the estimated total investment need.

We provided support to foundation's staff in structuring the analysis and conceptualising total and per farm cost drivers. The analytical tasks involved investigating measures of financial leverage, average cost and return on investment.

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