Stimulating Agribusiness Investment in Nigeria. Connexus is heading the Finance and Investment Unit under the USAID Feed the Future Nigeria Agribusiness Investment Activity (2018-2023), which aims to facilitate an additional $200 million in agribusiness lending and investment capital through lead agribusinesses. Using a market systems and value chain approach, Connexus is developing agricultural finance capacity in partner financial institutions in the northern states of Niger, Kaduna, Kebbi and Benue, as well as the southern states of Ebonyi, Cross River and Delta. Our long-term team is facilitating relationships and deal structuring with lead firms, as well as their micro, small, and medium enterprise and farmer networks associated with their agricultural value chains (soy, rice, maize, aquaculture, and cowpeas). By promoting climate smart agriculture, advocating for positive government policy and working in conflict-affected areas, the project aims to improve the business and enabling environment for agriculture-led economic growth in Nigeria. The team has already signed MOUs with 13 financial institutions and 14 investment funds that have demonstrated a commitment to expanding their agricultural portfolios. In 2019, Connexus trained these investors on Agricultural Value Chain Finance and Market Development, as well as Financial and Cashflow Analysis for Agri-SME Lending, using real cases from Nigerian agribusinesses. In 2020, Connexus delivered a Training of Trainers on Gender and Youth Financial Inclusion to 29 people from 12 PFIs and provided follow up technical assistance. Connexus also organized a deal making workshop for equity investors and trained 93 agri-SMEs on how to prepare an investment pitch, which is being expanded to include debt investors in 2021. In addition, the team has already identified a pipeline of potential investments valued over $200 million, which it is working on packaging for financial partners. To date, the team has facilitated $80 million in new agricultural investment to 2,973 MSMEs, including 43% in debt and 57% in new capital.
Client: Cultivating New Frontiers in Agriculture (CNFA); 2018-2023
“The Connexus team have contributed greatly to the USAID Feed the Future funded Nigerian Agribusiness Investment Activity. The field staff are exceptional as has been the support from the home office. While only 1 year into this 5-year project, they have proven to be responsive, innovative, and flexible in adjusting to a very dynamic and complex set of circumstances.” – Dr. Adam Saffer, Chief of Party, Feed the Future Nigeria Agribusiness Investment Activity
Read more about how Connexus helped support the facilitation of $18M in new financing for a Nigerian agricultural social enterprise by clicking this link