Agribusiness opportunity landscape scan for an Africa-focused investment fund

opportunity landscan
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Situation

An Africa-focused investment fund required a detailed agribusiness opportunity scan for East Africa—spanning Kenya, Uganda, Rwanda, and Tanzania—to determine the most efficient way to deploy capital in the agriculture and food sector. The fund also required a preliminary pipeline of firms situated in high-growth segments of the agribusiness sector.

Industries
Market Analysis & Opportunity Scoping
Commercial Advisory Services
Agribusiness & Food Systems
Capital Raising & Impact Investing
Engagement

ORI applied its extensive expertise in the African agribusiness sector, formulated a research methodology, and drew on its deep networks and contacts in regional industry and investor networks to complete the engagement.

Consistent with the client’s investment thesis, including a preference for investing in brownfield projects, ORI helped the fund by:

  • Analyzing industry opportunities in the agribusiness sector that aligned with the fund’s investment strategy and approach, including: investment period, holding period, types of companies, stake in companies, target returns, ticket size, and stage in the value chain.
  • Mapping the agribusiness opportunity landscape in East Africa and providing specific expertise in this space.
  • Conducting detailed investigations of opportunities across input provision, primary production, distribution and logistics, and agri-financing.
Outcomes
  • The client understood the differential attractiveness of selected industries and opportunities.
  • Prioritized industries for investment were—Inputs: Fertilizer and feed, Primary production: horticulture, livestock and aquaculture and Processing: fruits and vegetables and meat / poultry products.
  • A preliminary pipeline of potential investee firms was originated, and introductions were made to the fund.
  • Enhanced allocation of capital was approved by the fund’s Board for investment in East Africa’s agribusinesses–which now form part of the group’s portfolio.