Africa Agriculture and Trade Investment Fund (AATIF) Case Study

Convergence

The Africa Agriculture and Trade Investment Fund (AATIF) case study details AATIF, a USD 146m fund that invests across the entire agricultural value chain in Africa. The fund uses a first-loss layer (capitalized by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ)) and a mezzanine layer (capitalized by KfW and Deutsche Bank) to encourage private investment in the fund. The AATIF case study experience illuminates many useful lessons for others considering blended funds, including the need to match the fund structure to investors’ risk appetite, the opportunities associated with a flexible investment mandate, the need for consistent and effective communication among stakeholders, and the benefits of streamlined governance and decision-making processes.

    Date
    18 November, 2015
    Type
    Case Studies
    Region Focus
    Central Africa, East Africa, North Africa, Southern Africa, West Africa
    Sector Focus
    Agriculture
    Sub-Sector Focus
    Agriculture Finance