1. Innovare & L3 Consortium; Leveraging Leasing for Livelihoods
September 2015

2. Transforming African Agriculture through Mechanization
“Feed Africa and the world through a strategy of transformative partnerships to overcome multiple challenges confronting African farmers”
Challenges:
Poor & degraded soils
Limited choice of productivity enhancing
inputs at affordable prices
Unreliable water supplies
Poor market access
Lack of funding
Little Government support
Lack of mechanization

3. Ag SME Processing Equipment Finance Innovare & L3:
Filling a Market Gap With Innovative Finance
Increase Smallholder Production/
Reduce Losses
Banks Ag
Processing Equipment
SME
Finance
MFIs
Food Security

4. L3 IFM PROBLEM: Mechanization for Smallholder Farmers SOLUTION:
Improving Food Security in Africa requires… L3
Inefficient Agricultural Methods & Lack of Resources
PROBLEM:
Mechanization for Smallholder Farmers
SOLUTION:
IFM
PROBLEM:
Inefficient Processing Methods & Postharvest Losses
Better Processing Equipment for SMEs
SOLUTION:

5. Innovare Lease Financing Facility
Provides alternative lease financing to agribusinesses
which have difficulty accessing capital
Addresses a development need for smallholder farmers
to increase local production
Creates a demand-pull link for smallholder farmers by leasing appropriate mechanization to smallholder farmers, farmer organizations and agribusinesses.

6. Innovare Lease Financing Facility:
How it works

7. Unleashing the Potential of the African Smallholder Farmer
Improving the livelihoods of SHFs
New SME opportunities in communities
Increased food security for a continent

8. Agricultural Value Chain:M K T s k t
Input
Supplies
On Farm
Operations
Post Harvest
Processing
Food Production
and Packaging
Markets:
Export
National
Regional
Local
Increasing $$$ Value
Agricultural Value Chain:
Agribusiness Financing Opportunities

9. Agricultural Value Chains
Input Suppliers
On Farm Operations
Post- Harvest Processing
Food Production/ Packaging
Storage & Logistics
Storage X
Transport
Specialty Equipment
Irrigation
Refrigeration
Extruders
Packaging
Off-grid power
Financial Services
Leasing
Factoring
Working Capital
Marketing & Distribution
Generic
Value Chain
Dairy Value Chain
Meat and Poultry Value Chain(s)
Fruits, Vegetables and Grains Value Chain(s)

10. Leasing Leveraging Livelihoods; L3 Consortium
An integrated Partnership for Transformation of African Agriculture Through Mechanization
Innovare Advisors: An innovative investment management company focused on food and agriculture.
Mission: Facilitate capital to credit worthy Farmer Organizations and SMEs working in food and fiber value chains in emerging and frontier markets
Centum Learning: Global training and learning solution company; operating in 20 African countries.
Mission: Support clients including farmers organizations and SMEs engaged in agriculture value chain business
Post-Harvest Technologies: A professional advisory and technical solutions firm focused on providing appropriate technology solutions and mechanization to improve smallholder profitability.
Mission: achieve scalable impacts through selection and support of ag technologies

11. The L3 Consortium Objectives
Engage smallholder farmers, farmer organizations and agribusiness SMEs to determine the optimal mechanization equipment and complementary technologies to increase production and incomes;
Design, test and implement lease financing facilities to help make equipment affordable by providing the ability to pay over time through the increased revenue generated by the leased equipment;
Design, test and implement mechanization capacity building and training programs along the entire agricultural value chain;
Develop impact and outcome assessments to guide the integrated operation and all the components, and to improve management and ensure goals and objectives are met.

12. L3 Partnerships: AUC/AGRA - Transformation of African
Agriculture through Mechanisation(TAAM)
Integrate ag development with mechanisation
Six target countries strategically selected
Selected crops & value chains for each country
Private sector led; take to scale across Africa
AAIN/Unibrain – Agribusiness Incubation
Pan African in scope; Pilot in selected countries
Mechanization solutions for specific value chains
Joint Development and Fund Raising
African Fertilizer and Agribusiness Partnerships (AFAP)
Focus on equipment needs of SME HUB/Dealers
Lease Financing: Fertiliser blending, Seed processing and storage

13. Partnerships with Vendors in Multiple Agricultural Value Chains
Tractors
Fertilizer Blending
Milk Chillers
Grain
Processing/
Storage
Food
Production
Weighing and
Packaging

14. New Products + New Geographies = Scale

15. Summary and Conclusion
African Union/ AGRA Mission:  Transform African Ag
Increase production
Eliminate hunger; reduce poverty
Build value chains for economic impact
Ag mechanisation with lease financing as key component
L3 Consortium -- Implementing Partner for Mechanisation
Integrated Approach
Technical expertise
Lease financing
Training
Private Sector Participation:
Equipment and Technologies
Investment
Expertise for Scaling Across Africa

16. For Further Information:
John Riggan US
Mary Jane Potter US

17. Smallholder Farmer Impacts, Metrics & Outcomes;
Multiple Frameworks which incorporate “best practices”
L3 SHF Framework
Council on Smallholder Agricultural Finance (CSAF)
Global Development Incubator
Rainforest Alliance
GIIN/Iris
IFM, SME-focused model Framework 
Aspen Network of Development Entrepreneurs with a focus on SGBs, Small & Growing Businesses
Earned Revenue
Taxes
Gross Profit
EBITDA
Employee earnings, wages and commissions
Units/Volume Sold
New Businesses Created

18. Improving SHF Prosperity & Environmental Stewardship

19. Initiative for Smallholder Finance: Theory of Change