Agriculture Fast Track Fund applications now open to agribusiness operators
Applications for grant is currently being accepted by the promoters of the Agriculture Fast Track (AFT) Fund from agribusiness operators who need funds to grow their businesses and make them attractive for financing from institutional lenders.
The AFT is a new multi-donor trust fund designed to boost investment in Africa’s agricultural sector. In a release by the African Press Organisation on behalf of the African Development Bank (AfDB), the call was made for proposals.
Josephine Mwangi, the AfDB’s Agriculture and Agro-Industry department manager, said: “If you are in the agriculture business and qualify, then we want to hear from you!”
The AFT provides grant funds up to $1.5 million for project development costs such as feasibility studies, market research, financial modeling, business plan development, and environmental and social impact studies.
The Fund’s main objective is to reduce the infrastructure deficiency in the agriculture sector by developing a pipeline of projects that are attractive to Development Finance Institutions and can engage the private sector as project sponsors.
By offering entrepreneurs an opportunity to transform their good ideas into bankable investments, AFT aims to attract financiers by ensuring that the grantees present low-risk profitable investments. In order to qualify for an AFT grant however, applicants must meet a rigorous set of criteria. The applicant’s project must contribute to Africa’s agricultural infrastructure, contribute to the economic health of Africa’s struggling smallholder farmers, seek a minimum investment of $1 million from financiers and the project must be based in one of the six pilot countries: Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Mozambique and Tanzania.
The AFT, hosted and managed by the AfDB, is funded by the US Agency for International Development (USAID), the Swedish Development Agency (SIDA) and the Danish International Development Agency (Danida).
By: OLUYINKA ALAWODE