Terms of Reference (ToR) for a Study on Capital Flows into African Agribusiness: Focus on Multilateral Development Finance Institutions (DFIs)
- Background and Context
The Alliance for Food Sovereignty in Africa (AFSA) is committed to promoting sustainable agricultural practices and food sovereignty across the African continent. AFSA is commissioning a research study to investigate capital flows into African agriculture and their role in shaping the agribusiness landscape in Africa, with a particular focus on the role of multilateral development finance institutions (DFIs) such as the International Finance Corporation (IFC), the Global Climate Fund, the African Development Bank, as well as national development banks such as the UK CDC and the US Development Finance Corporation. This study aims to provide a detailed analysis of capital flows from DFIs into African agribusiness, with a focus on direct support for agribusiness companies, secondary financial entities, and private equity funds.
- Objectives of the Study
The primary objectives of the study are:
- To analyze and document direct DFI support for agribusiness companies and infrastructure projects in Africa.
- To examine DFI support for secondary financial entities, particularly banks that finance agribusiness projects.
- To investigate DFI support for private equity (PE) funds involved in African agribusiness.
- To provide an analysis of trends on capital flows into African agriculture.
- To explore the role of philanthropies and multinational corporations in supporting African agribusiness, with recent examples.
- To discuss how emerging crises, such as climate change, nutrition, and biodiversity, are being leveraged to garner support for African Green Revolution projects.
- To present illustrative case studies that highlight various types of capital flows.
- Scope of Work
The study will focus on the following key areas:
- Direct DFI Support for Agribusiness Companies and Projects: The researcher will review project disclosures from DFIs, such as the International Finance Corporation (IFC) and the Global Climate Fund, to summarize details (country, money allocated, dates) in a table listing all relevant projects within a defined period.
- DFI Support for Secondary Financial Entities: The researcher will analyze DFI disclosures to identify financing for African banks that support agribusiness projects. Publicly available resources on the banks’ lending practices will also be reviewed.
- DFI Support for Private Equity Funds: The researcher will parse recent data on private equity deals in Africa and DFI disclosures to develop a list of PE funds and the agribusiness companies/projects they are financing.
- Trend Analysis: The study will include a recap of top-line trends identified in the 2018 report and an analysis of how these trends have evolved or changed since then.
- Role of Philanthropies and Multinational Corporations: The study will discuss the involvement of philanthropies and multinational corporations in African agribusiness, with recent examples.
- Emerging Crises and African Green Revolution Projects: The study will explore how new and newly recognized crises, such as climate change, nutrition, and biodiversity, are being used to drum up support for African Green Revolution projects.
- Case Studies: The study will include illustrative case studies to exhibit various types of capital flows.
- Methodology
The study will employ a mixed-methods approach, including:
- Document Review: Analysis of DFI project disclosures, publicly available resources on bank lending practices, and recent data on private equity deals in Africa.
- Trend Analysis: Comparative analysis of trends identified in the 2018 report and recent developments.
- Case Studies: Development of illustrative case studies to highlight different types of capital flows.
- Deliverables
The researcher will provide the following deliverables:
- A written report covering the above subject matter.
- A PowerPoint presentation for the upcoming AFSA meeting in Kenya. The presentation will be delivered in person or via video conference.
- Timeline
The study is to be completed no later than 1 March 2025.
- Reporting
The researcher will report directly to AFSA. Regular updates on the progress of the study will be provided as needed.
- Qualifications of the Researcher
- Proven experience in financial analysis, agribusiness, and development finance.
- Strong research and analytical skills with a focus on African agricultural investments.
- Ability to deliver high-quality written reports and presentations.
- Familiarity with AFSA’s mission and strategic priorities.
- Reporting and Coordination: The consultant will report to the AFSA Program Officer and provide regular updates on progress.
- Application Process: Interested consultants should submit a proposal including their approach, work plan, and relevant experience to afsa@afsafrica.org by 30 January 2025.
