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Acknowledgement   Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm specialized in concession design.

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Presentation on theme: "Acknowledgement   Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm specialized in concession design."— Presentation transcript:

1 AGRODOR AFRICA Africa Agro Development Corridor Executive Presentation Sept 2012

2 Acknowledgement Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm specialized in concession design for REIE projects. The approach is hybrid combination of investment structuring coupled with development management expertise. Ethraa operates through offices in London, Buenos Aires and Dubai. Our Due Diligence review and Critical Success Factors (CSF) audit had been concluded in producing the self financed Agro Development Corridor(AGRODOR )model; which comprehensively constitute an added value solution for agriculture downstream and upstream sectors. Ethraa has the expertise to manage both burdens and ambitions associated with AGRODOR initiative, the approach is briefly defined as: Developing an asset based sustainable investment concession structure in partnership with the government; which will reduce the contribution of Sovereign Client while enable the subscriptions of broader institutional investors and without Sovereign financial guarantee. Structuring the Master Plan to generate viable economic cluster product, in synergy with both infrastructure requirement and urban planning. Creating a governance platform of sustain feasibility, mitigate risks; and increase the added values, while initiating a synergy with the national development goals. Building Human capacity with economically and socially balanced investment model. AGRODOR model provides solutions for most of the obstacles identified by the world bank for efficient agriculture development.. Ethraa will deploy credible expertise to design the AGRODOR investment concession structure based on the forthcoming presentation of AGRODOR Pilot and that will be tailored made for each country. AGRODOR is flexible model and can be implemented on fast track basis .

3 Rationale Approximately 80% of all African depend directly or indirectly on agriculture for their livelihood. Agriculture provides 70% of Africa’s full time employment, one third of total GDP, and 40% of total export earning. Thus Africa’s overall economic performance is inextricably linked to the performance of its agriculture sector.. Africa ranks the lowest in the world in terms of yields-enhancing practice, mechanization, use of agro chemical and irrigated land. Also average only 125 grams of fertilizer per hectare compared to world average of 1020 gram per hectare, mechanization in reported figures equally dismal at 13 tractor per 100km square or arable land compared to world average 200 tractor per the same area.. There is enormous potential for agriculture growth in Africa, it has twelve times the land of India, which is self-sufficient in food production with twice as many people to feed... It has been shown that each 1% increase in agriculture productivity in Africa reduces poverty by 0.6%.. Source: WB

4 Some of Africa Agriculture Challenges & Characteristics
Over-reliance on primary agriculture . Barriers to access market due to poor infrastructure, market standards, limited products .. Limited public and private investment in R &D , rural infrastructure , healthcare and education.. Domestic agriculture policy constraint.. Very limited access to commodity market chain or global value chain.. Lack of know how to reconcile conservation, production and sustainable management.. Financing agriculture and rural development(Transportation & utilities infrastructure).. Commercialization via Cash cropping Community development and building capacity Develop agriculture based industries to create an added value Limited up to date yield-enhancing technologies and practices Lack of sustainable development and ecosystem Source: WB

5 Pillars of Agriculture Transformation in Africa
The challenges are know for some time, pillars of agriculture transformation in Africa: Investment in rural infrastructure… Promotion of the use of yield-enhancing technologies… Privatization to enhance the competitiveness in agriculture input markets… Creating an enabling environment… These pillars are the basic parameters in developing GRODOR AFRICA Investment concession structure. Source: WB

6 Stat of Agro-World Agriculture Land Water Availability
Railways & Transit Dense Forestry

7 The Land Grab

8 AGRODOR Why Development:
The rising cost of Millennium Global Targets hinder the standards of wellbeing, whereas worldly the social financial measures are declining rather than climbing Employment: The sharp rise of unemployment due to technology, economic contraction and austerity requires developing the manpowered Agro sectors and industries Sustainability: The imbalance between development and urbanism creates shear stresses on governments to sustain the Urban Rural optimum equilibrium Security: The Food Security and Agro Production is the worry of 21st century, with more than 15 mln hectares are currently utilized in global land grab, and increasing fast

9 The Case Urban Overheating and Deterioration
Deterioration of Agro Production By 2050; 70% of World Population are City Dwellers Urban Migration Opportunities Urbanism Aspiration Solutions to Upgrade Rural Areas Infrastructure Congestion Inflation Problems of Increased Urbanism GOV Incubation CSR Programs Innovation AGRODOR

10 AGRODOR How Baselines: State Owned Arable Land
Owners Agro Development Corporations (Holding & Operational) Transit Oriented Development (TOD) Comprehensive Socioeconomic Development Incentives and Facilities for Investments (FDIs & Local) Components: Farming Models Agro Light Industries Agro Businesses Molecules Public Transit Systems Communications & Technology Grid Educational & Health Facilities Affordable Housing Models; if any Urban Businesses Incubation Farmers Products Market Funds

11 Enterprising AGRODOR Rural Development (Concerns of Governments)
Consumers Or Exchange Local Transport & Delivery Packing & Sort Processing Farming & Production Agro Infrastructure Developing Leadership Economy Diversification Improving Wellness Improving Environment Competitiveness Hub Opportunities Consolidation Regulatory Incentives Sector Openness Industry Evolution Economical Sustainability Rural Development (Concerns of Governments) Agro Business Value Chain (Opportunities for Investments)

12 AGRODOR: “pro et contra”
Pros: Political Will that are interpreted in Executive Procedures Legislation Hospitality for Direct Foreign Investments Progressive and Upgradable Concession Structuring Public Awareness Plans and Programs Availability of Domestic Resources and Manpower Cons: Complicated Legal Restrictions on Investments and Enterprising Complex Sociopolitical Fabrics and Unrest Acute Irrigation Resources Troubled Capacity Building Schemes

13 AGRODOR Standard Hub Transit Industrial Retail Academic Healthcare
Governmental Business Financial Logistics etc..! Business Park & Catalyst Plots Railways Station Freight Hub Medium Small Business Mixed Use Small Retail Business Railways Workshop Planning, Activities and Design of the hubs vary and correlate to both business and socioeconomic needs of farming productions and facilities

14 AGRODOR Standard Model
Arable Land Railways Tolled Roads ICT Network Farm Land Farm Land 100,000 Acres 40,000 Hectares AGRODOR Hub 100 km 50 km 20 km 500 km

15 AGRODOR Packages Transit Suburban Agro Biz
Cost of Green Land (Excluding Irrigation) Railways; Alignment, Signaling & Rolling Roads & ICT Grid AGRODOR Hubs – 5 nos. US$ 5,000,000 US$ TBA US$ 250,000,000 Annual Framing Production US$ 25,000,000,000 Annual Agro CAPEX & OPEX US$ 10,000,000,000 400,000 Hectares (1,000,000 Acres) Public or Private Existing 40 villages (Each 6,000 Capita) 250,000 Capita Development Corridor (10,000 km2 County) 500 km Transit Suburban Agro Biz These are general assumptions based on int’l rates

16 The Concession Special Purpose Vehicles (SPVs) AGRODOR Holding
Company Special Purpose Vehicles (SPVs) Infrastructure & Habitat FM &Town Management Infrastructure Delivery Real Estate Development RE Developer Land Bank Transit Operations Roads & ICT Network Operations Railways Supply & Operations Agro Agro Utilities Operations Farming Operations Ethraa Investment Development & Management Operations AGRODOR The Concession Company AGRODOR Capital Partners Minority Investors (Syndicates, SIGs, Unions,..) Development Agency (Government Partner) Sector Investors X1, X2, X3, .. (Strategic Seed Investors) Concession Design Mgmt Enabling Environment PPP Initiative Regulatory Targets Award Mgmt Negotiate Award Product

17 Investment & Development Management
Post Concession Stage Assets Development Assets Management Landlords & Plot Investors End-Users 4 5 Infrastructure Technical & Procurement Management Property & Commercial Concessions Management Pre Concession Stage Project Realization Project Initiation Product Validation Award IDMA Initial Statuary Consent Concession Company Investment & Development Management Plan 1 2 3 Shareholders & Investors Management Stakeholders & Regulatory Management Executive Proposal and General Orientation

18 AGRODOR Examples: 1. AGRODOR SS
Railways , Roads & ICT km 14 AGRODOR Hubs & 3 River Hubs Farming 4,000,000 Acres Rail Alignment with 5 Destinations CSRs for National Coherence Rural & Nomad Development AGRODOR Hub Marin Transit Hub Arable Land for cash Crops Transit Corridor Transit Connection River Transport Road Transport Water Consuming Crops

19 2. AGRODOR Ivory Railways & ICT 2,000 km New Deep-Sea Port
12 AGRODOR Hubs Farming 600,000 Hectares Rail Alignment with 4 Neighbors CSRs for National Coherence Spearhead National Development

20 3.AGRODOR SUDAN Phase 1 Phase 3 Phase 2 Phase 5 Phase 4 Agriculture
Livestock Mining

21 4.AGRODOR DARFUR Railways 400 km Paved Roads & ICT 700 km
KRM TZB FSR GEN Jabl Marrah Railways 400 km Paved Roads & ICT 700 km FOR 7 AGRODOR Hubs NYL Facilities for 50 Farming Villages RHD Cash Crops Farming 1 mln Acres Livestock Farming 2 mln Acres Integrated CSRs Facilities Rural & Nomad Development AGRODOR Hub Marin Transit Hub Arable Land for cash Crops Transit Corridor Transit Connection Road Transport Railways Transport Livestock Farming

22 5.AGRODOR Tanzania New Strategic Northern Ring
New Railways Tracks & Roads Refurbished Existing Tracks New Traffic Control System New Strategic Northern Ring Refurbished End Ports Refurbished Existing Roads End Ports Connecting Ports AGRODOR HUBs

23 6.AGRODOR Ethiopia New Strategic Central Link New Railways Tracks
These are carefully adapted and coordinated concepts to be developed as per standards and practices under Ethraa’s Coordination & Advisory 6.AGRODOR Ethiopia New Railways Tracks Refurbished Existing Tracks Enhanced Traffic Control System New Strategic Central Link New Tolled Speed Highway Refurbished Existing Highways


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