UNDP - EMRC Agribusiness Forum : 18 October 2011

LUNDIN FOUNDATION

• Founded in 2005; based in Vancouver, CANADA

• Affiliated with Lundin Group of Companies, who have operated successfully in Africa for more more than 35 years.

• Geographic Footprint: Sudan, South Sudan, Ethiopia, Kenya, DR Congo, Zambia, Lesotho, Ghana, Mali, Burkina Faso, Niger, Mauritania

• Priority Sectors: agriculture / agribusiness (65%), financial inclusion (25%), and renewable energy (10%).

• Invests $10mn annually.

  

INVESTMENT STRATEGY

• Exclusive focus on SMEs– US$200k to US$2,000,000

• Debt, Quasi-Equity, Equity, Partial Guarantees

• Patient capital (up to 12 years)

• Hard or Local Currency Instruments

• Technical Assistance grants to build capacity and drive performance improvements in investees

• Strong Network of Co-Investors: Acumen Fund, Alliance for a Green Revolution in Africa (AGRA), FMO, Root Capital, Soros Economic Development Fund etc. Lundin Foundation will take lead or subordinate position in investment syndicates.

INVESTMENT CRITERIA

• Business Model– Innovation– Scalability

• Financial Viability

• Management Team

• Impact Metrics– Top Line Revenue, Taxes Expensed, Job Creation, Supply Chain

Multipliers, Product / Service Beneficiaries, Taxes Expensed

• Risk Assessment and Mitigation Strategies

AGRICULTURE PORTFOLIO• Focus on innovative projects inclusive of smallholders and

environmentally responsible

• Invest along entirety of agricultural value chain (inputs ► post-harvest)

SAMPLE AGRICULTURE INVESTMENTS

• West African Agricultural Investment Fund (WAIFF) – Holdco headquartered in Accra / Abidjan investing in improved / hybrid seed production / distribution and agri-processing. Focus on Ghana, Mali, Burkina Faso, Niger, and Cote d’Ivoire.

• COMACO (Zambia)

• Medeem (Ghana)

COMACO (Zambia)

• Founded in 2003, COMACO is non-profit conservation agriculture company that has developed an innovative, for-profit solution to engage rural communities in enhanced food security and land use management. 2011-2012 turnover: USD 3mn

• USD 1mn revolving inventory finance loan to finance input purchases + technical assistance grant (transport / logistics)

• 450 direct jobs; 45,000 micro-suppliers; reduced poaching and deforestation through improved livelihood opportunities and conservation dividend to highest compliance smallholder groups.

MEDEEM (GHANA)

• Founded in 2007, Medeem provides a unique, low cost private sector solution to the documentation / formalization of land and sharecropping rights for smallholder farmers: ParcelCert

• Commercial operations began in January 2011; Lundin made USD 1.5mn investment: low coupon debt with 3 year grace period 10 year term; sliding scale royalty (1-4%) on top-line revenue; minority equity stake (15%) (Medeem LLC Parent).

• Technical assistance grant to evaluate market for documentation of sharecropping rights: ShareCert.

CONTACT DETAILS

Stephen Nairne

Managing Director

Lundin Foundation

stephen@lundinforafrica.org

+1.604.806-3082

Website

www.lundinforafrica.org