Evidence details

Bridging demand and supply of private investment capital: for small and medium agribusinesses.

Abstract

  • This report aims to identify how impact investment actors can bridge the gap between the risk–reward demands of investment capital and the available supply of agribusinesses for investment.

  • The report provides examples of ways in which investment risks can be mitigated in the current policy landscape, as well as how best to identify and provide products for suitable agricultural investment opportunities.

  • The report concludes that there is no evidence of a shortage of investible funds for African agribusiness, but that the policy and enabling environment remains risky due to the volatile nature of agribusiness, leading to a reduction in the amount of private investment being provided to agribusinesses. Additionally, the report highlights that many investors’ most common products are inappropriate for the agribusinesses they are targeting, as well as the importance of diversified enterprises in reducing investment risk.

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