Financing solutions for agriculture

Sub-Saharan Africa

Tailor-made financing solutions

Our offering

responsAbility is a leading financing partner in the sustainable agriculture sector in developing economies. Through our managed funds we offer customised debt and equity financing covering the diverse needs of actors along the agricultural value chain that improve livelihoods in rural areas. By helping clients to increase productivity, gain access to higher-paying markets and achieve more balanced trading relations, responsAbility managed funds maximise their development impact while optimally capturing investment opportunities.

Eligibility for investment includes the following criteria: 

  • Contribute to economic development of low income population in rural areas through productivity improvement and access to market
  • Sustainable business models within the agricultural -value chain
  • A clear committment to environmental and social criteria 
  • Annual financial reports audited by a reputable company (last 3 years) 
  • Ability to provide annual financial projections

Services 

  • Short term financing, to finance inventory and receivables, pre export and export
  • Long term financing, to finance the purchase or construction of property, plan and equipment
  • Sub-debt financing
  • Equity financing
  • Technical Assistance

Client Benefits

Tailor made solutions adapted to your business model
Increasing amounts to help you grow your business
Ability to provide long term solutions for capex
A dedicated team of experts recognised for its attentiveness, proximity and ability to react quickly to client needs

A global player across three sectors

responsAbility Investments AG is one of the world’s leading asset managers in the field of development investments. The company’s investment solutions supply debt and equity financing to companies in emerging and developing economies. 

responsAbility focuses on three investment sectors: 

Agriculture, financial services and energy, and on companies with inclusive business models that help to meet the basic needs of broad sections of the population and to drive economic development – leading to greater prosperity in the long term.

responsAbility has over USD 3 billion of assets under management, invested in more than 560 companies across 96 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market as well as its own employees. responsAbility is registered with the Swiss Financial Market Supervisory Authority FINMA. 

Financing your growth

Solutions for companies along the entire value chain

Faced with changing market requirements reflecting increasing demand, shifts in diets and international product standards, actors along the agricultural value chain need flexible financing suited to their specific needs to address emerging challenges, leverage new opportunities and successfully grow their business.

Financing solutions are adapted to the different requirements of companies along the agricultural value chain, including

  • pre-harvest financing
  • export-related financing
  • asset financing
  • project finance
  • mortgage financing

Our partners can choose from financing solutions with different maturities, innovative and flexible collateral structures, currency hedging and transparent terms and pricing structures.

We grow with our clients. Where required, we also offer technical assistance and advisory services, for example, in relation to business plans or structuring capital.

Example of export sales contract assignment

03_Agriculture_Asia

Financing with impact

responsAbility managed investments along the agricultural value chain are guided by a focus on several key impacts benefiting its investees and their communities as income gains for farmers translate into improved livelihoods, growth and employment and reduced environmental impacts.

Production factors & production

Agricultural finance can help producers achieve higher and more stable incomes through improved productivity and soil fertility as well as reduced vulnerability to external shocks like pests, diseases and drought. Thanks to the cash cushion provided by responsAbility managed funds, farmers do not have to sell their produce immediately after harvesting, when prices are lowest, but can negotiate better prices with buyers.

Processing & logistics

By supporting organisations involved in processing, packaging, transport, or storage, agricultural finance helps to add value to raw agricultural products, thus raising the prices that local farmers receive. It can enhance the efficiency of supply chains, by optimising the use of natural resources, such as agricultural land and water, and reducing energy and food waste, thereby mitigating negative environmental impacts. It can also create new employment opportunities by enabling the development of distribution networks.

Distribution & retail

Agricultural finance helps producers gain better access to markets by financing traders. Traders also help suppliers to better match demand by keeping track of changing consumer preferences, market conditions, standards and regulations, and to tap more secure and higher-paying markets.

How to obtain financing

We select investments based on a tried and tested approach that enables us to respond to your financing needs in a quick, efficient and flexible way.

Our experienced team of dedicated local experts can complete the financing process within 6 – 8 weeks. Drawing on their deep understanding of local markets and commodities, they can cater to individual requirements and ensure that we provide a stable source of financing that helps to diversify our partners’ borrowing profile.

Our investment officers and transaction managers maintain close relationships with our counterparties at all times -to anticipate and respond quickly to any arising needs or difficulties.

“Cajou Espoir, Cashew processor, Togo”

Maurice Edorh

Your Regional Partner

Sub-Saharan Africa

About the region

responsAbility has been operating in Sub-Saharan Africa for five years and has provided funding to agribusinesses in 11 countries across the region. Our managed funds have financed more than 19 commodities in Africa to date and have a comprehensive understanding of agricultural commodities and their cycles thanks to our teams of commodity and market research specialists and our dedicated, experienced professionals on the ground.

responsAbility managed funds invest in companies active along the entire agricultural value chain that increase agricultural productivity and promote sustainable practices by providing fair wages and working conditions as well as minimising environmental degradation. Our strong relationships with upstream and downstream partners give us detailed insight into our clients’ operations and market developments as they unfold.

YOUR REGIONAL TEAM: SUB-SAHARAN AFRICA

Shiru MwangiShiru Mwangi
Regional Head – Agriculture Debt Financing
Email shiru.mwangi [at] responsAbility.com

 

 

Expertise

  • More than 18 years’ experience in corporate and investment banking with a focus on lending, global markets and project finance
    Regional knowledge of East Africa from the management of teams in Kenya, Uganda, Tanzania and Mauritius as well as non-presence for Rwanda and Ethiopia
    5 years’ experience as an agribusiness investor focusing on production, out-growers and export of fresh produce

Andrew MwangiAndrew Mwangi
Junior Investment Officer – Agriculture Debt Financing
Email andrew.mwangi [at] responsAbility.com


 

Expertise

  • Experience in structured trade finance, financing of the coffee, cocoa, cashew and macadamia value chains, and financial and operational risk assessment