Agriculture Fast Track fund new applications start November
T
he Agriculture Fast Track (AFT) fund will open a new call for applications for grants in early November, this year, through its website. This was made known in a press statement by the African Press Organisation (APO) on behalf of the African Development Bank (AfDB).
Last weekend, the AfDB announced the award of grants to two organisations under the AFT fund to coincide with the celebration of the 2013 World Food Day, which took place October 16.
According to Chiji Ojukwu, director, Agriculture and Agro-Industry, “these awards are a demonstration of the extent to which African countries and their development partners are willing to go to propel the African agriculture transformation through enhanced development of agribusinesses in a manner that is more consistent with how business and investors really work.”
The AFT fund is a multilateral fund supported by United States Agency for International Development (USAID), the Swedish Agency for International Development (SIDA) and the Danish International Development Agency (DANIDA). Its aim is to enhance food security by assisting Africa’s agricultural sector to “transform innovative ideas into bankable investments.” Administered by the AfDB, the AFT fund sponsors public and private sector agriculture infrastructure investment projects to undertake the project preparation studies and analysis necessary to attract investment. The current donors’ pledges amount to $26.8 million.
The two new grantees – the National Federation of Food Production Co-operatives (FENACOVICI) of Côte d’Ivoire, and Tanzania-based Darsh Industries, a tomato processing company, have met all of the AFT grant requirements. They will now work with the AfDB to finalise the paper work that will lead to the release of the resources.
FENACOVICI is a national apex organisation of 11 food and agricultural co-operatives. The federation plans to increase its members’ food production through investments in drip irrigation system and improve the marketing of this output with new fresh produce handling and food processing facilities. It will receive a grant of $552,000 to cover the initial preparation.
The second grantee – Darsh Industries is planning to set up a new tomato processing plant in Iringa, Tanzania, with a daily processing capacity of 150 metric tons. The factory will purchase tomatoes from local farmers, who often struggle to access markets.
In the past, lack of markets resulted in spoilage and gluts that in turn led to depressed prices. Darsh Industries will also offer extension services to farmers. The grant award of $221,000, will enable the company finalise the preparatory work including a feasibility study and Environmental Impact Assessment.
These two new grants follow on the successful completion of AFT’s first grants made to Bobo Dioulasso-based Fruiteq SA of Burkina Faso and Eden Tree Limited of Accra in May 2013, which are now fielding investors.
Catherine Krobo Edusei, founder of Eden Tree that has received the AFT grant, is just like any other entrepreneur. According to an AFT report, she said, “I discovered this passion that was deep down in me. I discovered it and simply went with it.”
She first seized upon the notion of becoming a farmer and entrepreneur 16 years ago when she noticed that Ghana’s grocery shelves did not have the fresh organic produce she took for granted while she was in the UK. She had just arrived back from England where she had worked for a bank.
The 51-year-old mother of two had also observed that Ghana’s emerging middle class were becoming increasingly knowledgeable about the benefits of fresh, organic produce. “I then delved into it. I studied it, read about it and then I decided that I would experiment.” It worked. She discovered her calling and Eden Tree Limited was born.
Edusei is described as one among a new generation of African agribusiness entrepreneurs who are transforming the continent and bringing fresh ideas and innovation to a sector that investors have long shunned. She has spent years laboriously building her business from two to 43 full-time staff (23 women, 20 men); establishing a restaurant; a retail outlet and an impressive pool of suppliers. She then needed to expand but could not because it was very costly to do the feasibility and environmental studies necessary to attract investors.
The solution came through an innovative new USAID and Swedish International Development Agency (SIDA)-funded project that assists agribusiness entrepreneurs with the funds necessary to meet both requirements—and thus make them more attractive to investors.
By: OLUYINKA ALAWODE