Paris: Conference on Public/Private Finance & the Agricultural Sector in Africa
Practical Information
- Date: Wednesday, June 26, 2024
- Time: 14:00-18:00 (Paris time)
- Location: Headquarters of Groupe Invivo, Paris, 83 Avenue de la Grande Armée, 75782 Paris Cedex 16, France
- Online Access: Option to follow the conference live via Zoom
- Registration: Registration Form
Context The West African Economic and Monetary Union (UEMOA) plans to undertake a major strategic reorientation of its agricultural policy, including diversifying funding sources and increasing private sector involvement within an integrated approach to agricultural value chains.
The UEMOA has found that the current credit offerings are largely unsuitable: bank loan maturities are too short to finance investments, interest rates are often too high relative to the profitability of activities, standardized financial products are not compatible with the fluctuations of agricultural activities, and collateral requirements are difficult to meet given the limited assets and precarious land status of the actors involved. Development institutions dedicated to the private sector (such as IFC, PROPARCO, DEG, FMO, etc.) often face a conflict between risk management and impact objectives.
Key Questions:
- What solutions can address the mismatch between the supply and demand for financing in the private agricultural, agro-industrial, and livestock sectors?
- How can more capital be attracted to a sector perceived as too risky, with returns that may be too long for market demands, especially considering challenges like value chain structuring and climate risks?
The Fondation pour les études et recherches sur le développement international (FERDI) has explored a blended finance investment vehicle for the UEMOA, aiming to mitigate risks, accelerate investment returns, and enhance environmental and social impacts.
Objectives of the Conference The conference will present and discuss the main features and feasibility of this financial instrument, which would be managed by asset management professionals, combining public, philanthropic, and private resources exclusively for the agriculture and livestock sector in Africa.
The event will bring together various stakeholders, such as project leaders, business executives, investors, foundations, donors, financial institutions, public administrations, and regional organizations to examine this proposed instrument designed to support up to one hundred African agricultural “champion” enterprises capable of significantly structuring value chains that also include small family farms.
Program
Part 1: 14:00 – 15:00
- Presentation of the Challenges in the Agricultural Sector in Africa
- Discussion on the needs (access to finance, value chain development, modernization, etc.) within the UEMOA with input from entrepreneurs in agriculture, livestock, and agro-industry sectors.
Part 2: 15:00 – 16:10
- Presentation of FERDI’s Involvement in Responding to UEMOA’s Expectations
- Presentation of the proposed financial vehicle: fund structure, investment targets, financial and extra-financial objectives.
- Justification for the mobilization of public resources to de-risk private investments through impact measurement.
Break
Part 3: 16:30 – 18:00
- Discussion Among Stakeholders
- Dialogue between agricultural entrepreneurs, representatives of the French administration, regional institutions, donors, investment funds, foundations & philanthropic funds, private investors in response to the presentation of the financing vehicle, and expression of specific field needs and expectations.
- Q&A session with the audience.
Organizer
The Foundation for Studies and Research on International Development (Ferdi) is a think tank with the mission to influence international development debates by leveraging research results.
Non-profit and independent, Ferdi provides a privileged space for reflection and exchange, welcoming expertise from both the Global North and South. It plays a key advocacy role for vulnerable countries in shaping the international development finance architecture and offers expertise in defining public policies for sustainable and inclusive development.
Ferdi contributes to the evolution of ideas on important and diverse topics through organizing events, seminars, and training sessions, publishing materials, and creating innovative indicators. These topics include criteria for geographical allocation of aid, addressing economic vulnerability and state fragility, the effectiveness of international policies for the least developed countries, and ways to reconcile trade policies, climate, and environmental protection.
Ferdi’s publications benefit from French state support managed by the ANR as part of the “France 2030” investment plan under the reference “ANR-16-IDEX-0001.”
History
The Foundation for Studies and Research on International Development (Ferdi) was established in 2003 at the initiative of the Center for Studies and Research on International Development (Cerdi), the leading French research center in this field. Cerdi is Ferdi’s primary scientific partner. Patrick Guillaumont is the founding president of Ferdi.
Activities
- Research work divided into 8 thematic programs
- Publication of books, reports, working papers, and brief notes in French and English
- Publication of articles in peer-reviewed journals
- Organization of conferences and workshops
- Participation in international conferences
- Recommendations to policymakers and stakeholders in international development (United Nations, European Commission, OECD, World Bank, regional development banks, development agencies, etc.)
- Organization of training sessions under the Institute of Advanced Studies in Sustainable Development
Missions
- Promote excellence in French-language research in international development economics;
- Inform the decisions of public and private actors on development;
- Participate in the training and capacity building of civil servants and officials in developing countries.
Created on January 10, 1994 in Dakar, the West African Economic and Monetary Union (UEMOA) has the essential objective of building a harmonized and integrated economic space in West Africa, within which the free movement of people, capital, goods, services and factors of production is guaranteed, as well as the effective enjoyment of the right to practice and establish a business, and the right of residence for citizens throughout the community.
Eight coastal and Sahelian states, linked by a common currency, the FCFA, and benefiting from common cultural traditions, make up the UEMOA: Benin, Burkina, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The UEMOA covers an area of 3,506,126 km2 and has a population of 123.6 million. The GDP growth rate, at constant prices, is 6.1% in 2019. (Source: INS/C. UEMOA : RSM June 2020)
UEMOA is represented by a logo symbolizing growth, union, solidarity and complementarity between coastal and Sahelian states.
The logo represents two dynamic, elliptical shapes which, despite their specificities, intertwine to express two strong notions: the solidarity and complementarity of the States and peoples of the Union.
This solidarity and complementarity are ready to be released in a continuous upward movement that will lead to the economic, social and cultural blossoming of our respective populations.
Here, the energy of the forest creepers harmonizes with the warm, lively vibrations of the Sahel to produce the sphere of happiness that illustrates the characteristics and objectives of the WAEMU:
Natural resources and material equipment (lower 1/2 sphere in blue), intellectual resources (1/2 sphere in gold);
The white circle expresses Peace, Serenity and Stability, which must remain the anchor points of the UEMOA integration process.
