1. 1 AGRICULTURAL INVESTMENT IN AFRICA Brazilian Expertise to Promote Sustainable Agriculture Investments

2. 2  PRIVATE FOUNDATION OF PUBLIC LAW, FOUNDED IN 1944  THE FIRST UNDERGRADUATE COURSE IN PUBLIC AND PRIVATE ADMINISTRATION OF LATIN AMERICA  AMONG THE WORLD´S LEADING THINK TANKS IN PUBLIC POLICIES DEVELOPMENT (RESEARCH BY THE UNIVERSITY OF PENNSYLVANIA )  AMONG THE WORLD´S TOP 100 UNIVERSITIES EVALUATED BY HUNDREDS OF CEO´S ( NY TIMES)  3 SCHOOLS AMONG THE TOP FIVE BRAZILIAN UNIVERSITIES ( MINISTRY OF EDUCATION)  CREATES AND PRODUCES THE MAIN INDEXES OF THE BRAZILIAN ECONOMY, SOME OF WHICH INDICATE INFLATION RATES AND ECONOMIC PERFORMANCE WHO WE ARE FGV FOUNDATION

3. 3 An Overview

4. 4 PAPERS & MAGAZINES FGV PROJETOS ANALYSIS AND PROJECTS Publications

5. 5 Technical Cooperation Agreement Between:  Technical cooperation agreement between the European Union and Brazil, for a feasibility study to produce biofuel and food in Mozambique. The projects were financed by the following entities: Context Environmental Agricultural Cooperation Agreement Results: 12 countries have received the feasibility studies of bioenergy project development: ethanol, biodiesel, electricity, steam and food projects.  Brazil-USA technical cooperation agreement to develop bioenergy in countries in the tropical belt.

6. 6 Motivation for bioenergy and food projects in the Tropical Belt Current Status Expertise in sustainable production of biofuels and food production (ethanol, biodiesel, vegetal oil, grains and others) ; Ethanol program since 1975; Biodiesel program since 2005: 103,000 farm families involved; USD 576.5 million in purchases from family farms; 20% of biodiesel fuel stock is supplied by family farmers. Brazilian Experience FGV methodology Combines all Brazilian expertise in developing sustainable bioenergy and food projects. Tropical Belt

7. 7 FGV Experience in the Tropical Region Over 240 million hectare studied Over 100 local meetings attended About 2,400 soils samples gathered Up to 27 kinds of crops analyzed

8. 8 Study Case Country: Republic of Senegal Crop in analysis: Cotton Location: West Africa

9. 9 Meteorological Stations Mathematical Models Climatic parameters for each Crop Agroclimatic Zone Map Algebra Soils Relief Edaphic Zone Wetlands Protected Areas Environmental Zone Field Survey Agro-Ecological Zone Methodology Overview

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11. 11 Methodology

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17. 17 Latitude Map Longitude Map Altitude Map

18. 18 Agroclimatic Parameters for Cotton Water Storage Capacity (WSC)125 mm Average temperature Average precipitation Water Surplus Primary Data Weather station Organized Data From the Meteorological Station Application of the Model Results: Water Balance – Thornwaite & Mather Model

19. 19 Agroclimatic Zoning Example: Average Temperature - Regression AverageTemp = 34,1596 + 0,2274 * LatitudeMap + 0,6566 * LongitudeMap -,0060 *AltitudeMap

20. 20 AverageTemp = 34,1596 + 0,2274 * LatitudeMap + 0,6566 * LongitudeMap -,0060 *AltitudeMap Agroclimatic Zoning Example: Average Temperature - Regression

21. 21 Water Surplus Precipitation Average Temp. Agroclimatic Zoning= Temperature + Precipitation + WS Agroclimatic Zoning Example: Average Temperature - Regression

22. 22 Agroclimatic Zoning Example: Result

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24. 24 SRTM Gov.

25. 25 Edaphic Zoning: Edaphic Parameters for Cotton SlopeSoil Edaphic Zoning= Slope + Soil

26. 26 Edaphic Zoning: Result

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28. 28 Edaphoclimatic Zoning Agroclimatic Zoning. Map Algebra Classification According the Crop Result Edaphoclimatic Zoning Map Edaphic Zoning.

29. 29 Edaphoclimatic Zoning Parameters for Cotton

30. 30 Edaphoclimatic Zoning Map for Cotton

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32. 32 GOV. Environmental Zoning: Environmental Parameters

33. 33 Environ. Zoning= Protected Area + Wetlands Protected areas Wetlands Environmental Zoning Map

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35. 35 Best Sites for Cotton

36. 36 Best Sites for Cotton

37. 37 Best Sites for Cotton

38. 38 Best Sites for Cotton

39. 39 Best Sites for Cotton Field Survey

40. 40 Best Sites The best sites contain the following aspects: Suitable Edaphoclimatic parameters; Environmental suitability, Logistical adequate, Others.

41. 41 These studies are deep and include: Methodology

42. 42 Crop Plants Aptitude (food & bioenergy) Recommendation Production Capacity Zones: Agroclimatic Edaphic Environmental & Social Results Investiments Regulatory framework Infrastructure Financial & Envirmental questions Phase II Business Model: Raw material, crop inputs Clusters Supply and Demand Constraints and opportunities Methodology Phase I – Feasibility Analysis

43. 43 Phase IV Phase III SUB-PROJECTS R&D&I (technology transfer, research, development and innovation) Agriculture Industrial Social Finance Environment Regulatory framwork & Legal Market Analysis Risk Analysis IMPLEMENTATION Management; Business Plan - technology Package & sustainability F.I.P: o Strategic partnership o Pension Funds o Stakeholders o Financial Market o CSR Banks; o Local Governments OPERATION S.P.C.; Leadership, Knowledge and Accountability Capacity building development; Designing of contracts : o Sales of product o purchase of raw materials and supplies. o corporate and cooperative structuring Executive Project Phase II – Executive Project Methodology

44. 44 Proyecto Cinturão Tropical 02. 05. 2011 DEVELOPMENT CLUSTERS Methodology

45. 45 Management Level refers to potential land use and social sustainability; Potential Clusters refer to the potential regional industries. Cluster Definition is obtained by merging data from Management Level, Potential Cluster List, Logistics, Commercial Viability, Public Policy, and other factors. Definition

46. 46 Step 1: Region Zoning Step 2: Physical Analysis Step 3: Social Analysis Step 4: Determine Management Style Step 5: Optimal Crops Selection Step 6: Define Schedule and Steps Process

47. 47 Example of Cluster

48. 48 Nacala FUND ProSavana Program Nacala Corridor

49. 49 PROSAVANA It is a Master Plan for the Nacala Corridor, funded by the Japanese Government (JICA) and the Brazilian Government (ABC), focused on the development of Nacala Corridor; Its design is based on the success of the Prodecer Program - in the Brazilian Cerrado, also developed with JICA, which is currently characterized as one of the largest agricultural areas in Brazil; ProSavana Master Plan includes: Nacala Fund Master Plan will be the Guideline of Nacala Fund.

50. 50 Spatial location

51. 51 Agricultural potential

52. 52 Infrastructure: Highways

53. 53 Infrastructure: Railroad

54. 54 Infrastructure: Port of Nacala

55. 55 13° 17° Brazil Mozambique 14 milhões de hectares  Similar biomass.  Similar challenges.  Vast business opportunities.  Sharing of experiences.  Future vision of comparable market ProSavana: Trilateral Cooperation Investments: Agro Industrial: Soybean, Corn, Rice, Cotton, Bean, Sun Flower, Coffee; Fruits etc.; Protein: Cattle, Chicken, Pork, etc.; Infrastructure: For supporting the Project, e.g.: Port terminal for grains. International volatility in food prices Target market: 1° Mozambique 2° Africa 3° Asia (53% of world population) Produce Consume Export

56. 56 Partners Involved

57. 57 NACALA FUND

58. 58 Nacala Fund  Support the development program of Mozambique, promoting the economic, social and environmental progress.  Regulate the investments in the Nacala Corridor: Promoting productive arrangements through association, cooperatives and consortium.  Attracting investments with low risk and high return. Mozambicans Brazilians Japanese Facilitating technology transfer + - Risk: Institutional package (ProSavana program) Return over the capital: Know-how, Infrastructure and market.

59. 59 Strategic Investor (direct investment into project with/without majority) Project I Project II Project `n` Strategic Investor Project I Project II Project `n` Strategic Investor Project I Project II Project `n` SPV Annual Food Crops ¹(Local regulations apply for newly established SPV in each country of peration) SPV Perennial Food Crops Other Cash Crops Japan & Brazilian Private Sector THE AFRICA OPPORTUNITY FUND (Japan) (Japan regulated fund) Japanese Fund Manager for the local FEEDER FUND / Japan THE AFRICA OPPORTUNITY FUND (Brazil) (Brazil regulated fund) (Luxembourg regulated SICAR) THE AFRICA OPPORTUNITY FUND I: NACALA FUND I VOTE BOARD OF DIRECTORS (Voting Power) FUND II ADVISORY BOARD Strategic Investor (Non-Voting Right) Agricultural production: Cooperative System Brazilian Fund Manager for the local FEEDER FUND / Brazil Lead Technical Manager Advisor & Public Affairs MINAG $ $ Partner P<roject TECHNICAL MANAGEMENT Nacala Fund

60. 60 ABC Project Partner Research Master Plan Rural Extension Project Partner Research Master Plan Rural Extension JICA ProSavana Private Investment Fund Nacala Fund Private Investment Fund Nacala Fund Infrastructure Value Chain Nacala Fund Public Funds (JICA, Banks for CSR Activities, etc.) Public Funds (JICA, Banks for CSR Activities, etc.) MINAG

61. 61 Nacala Fund Project Organization Fund-raising Investment Schedule – Nacala Fund Fulfilled Out.12 Nov.12 Jun.13 Master Plan Delivery

62. 62 Giuliano Senatore +55 (11) 9 7100 7883 giuliano.senatore@fgv.br Marcos A. Matos +55 (11) 9 8330 1959 marcos.matos@fgv.br www.fgv.br/fgvprojetos + 55 (11) 3120-4913 + 55 (21) 3799 6051 Thank you!