The Africa Agriculture and Trade Investment Fund (AATIF) is an innovative public-private partnership dedicated to uplift Africa's agricultural potential for the benefit of the poor. The Fund aims at improving food security and providing additional employment and income to farmers, entrepreneurs and labourers alike by investing patiently and responsibly in efficient local value chains.
Objective of the Fund
Globalization has spurred trade including trade of agricultural and manufacturing produce across the world, however low income countries largely remain exporters of raw materials lacking substantial local value addition. Although the African agricultural sector still faces barriers to be overcome it also holds enormous potential. Thus, great importance is attributed by AATIF to promoting investments along the entire agricultural value chain. The fund will strive to improve agricultural practices to increase crop yields or assist in building storage and processing capacity to broaden local value addition.
1) Driving local value addition and reduction of poverty
Investments should foster value chain enhancement and thereby contribute significantly to the business growth of African farmers and subsequently to a reduction of poverty. To accomplish this objective, the AATIF will prioritize investments which have a distinct approach and the ability to improve food security, create employment and boost local incomes.
2) Achieve economic sustainability of the Fund
The Fund will be guided by principles of sustainability and additionality, combining development and market orientation. It will do so by directly financing economically sound projects and by refinancing local financial intermediaries, such as banks. With this approach AATIF strives to assist the local financial sector in offering more reliable and sustainable solutions for smallholder farmers, cooperatives and commercial farms alike.
3) Attract private and public capital into Africa agriculture financing
By achieving local value addition, a reduction of poverty and economic sustainability, the Fund aims to attract additional investors, thereby additional capital for the African agricultural sector with a focus on the rural population living from agriculture, where the lack of patient and reliably available financing currently precludes economic development. The advanced risk-return-profile of the innovative public-private partnership structure, the environmentally and socially responsible way of conducting its business and the depth of experience of its stakeholders should make AATIF an attractive investment opportunity.