This document summarizes discussions from an open space meeting on agro-finance research and learning. It outlines key points on the importance of science, technology and innovation for African agriculture. Private sector partnerships and innovative funding mechanisms were discussed as ways to scale agricultural innovations. Barriers to linking research and the private sector included limited business skills and mistrust. Examples of equity funds, value chain funds, and national research funds from Uganda, Ivory Coast, Burkina Faso and Senegal were provided as models for encouraging use of research results. German, Dutch and Rabobank Foundation funding programs supporting food security were also mentioned.

1. Open Space Meeting: Research and learning on agro-finance
Linking Public Goods with Private Interests to Scale Up Agricultural Innovations and Impact, the Hague 21/09/2015

2. “Science, technology and
innovation (STI) is critical for
creating comparative advantages in
Africa’s agro-industry subsectors”
Unido, May 2011

3. “Africa’s farmers and agribusinesses
could create a trillion-dollar food
market by 2030 if they can expand
their access to more capital,
electricity, better technology and
irrigated land to grow high-value
nutritious foods”
World Bank, March 2013

4. For the private sector to
meaningfully contribute to inclusive
growth, policy should be steered
towards innovative institutional
arrangements, including fostering
appropriate partnerships among
public, private and civil society
organizations.
AFDB April 1014

5. “We will pursue an enhanced
cooperation among EU and
Africa private sectors and
farmers' organisations
exploring innovative and
inclusive partnerships.”
2-3 APRIL 2014, Brussels,
Fourth EU-AFRICA Summit.
ROADMAP 2014-2017 (15 pages)

6. Research gaps:
1.Research into processing, storage, food
preparation and other food interventions post-
farm Example: EC/FP7 AFTER: AfricanTraditional Food Revisited by
Research ; DANIDA/UniBRAIN incubators
2.Mechanization and renewable energy
3.Healthier packaged food Example: Pack4Food

7. Renewable Energy research needs
Irrigation: Diesel pumping systems fueled with
biofuel, micro-hydro, solar PV, wind
Agro-processing: Biodiesel pumps, micro-hydro,
microgrids, solar dryers
Mechanical energy: Biodiesel pumps, micro-hydro
Cooking: Cleaner biomass cookstoves, biogas, solar
cookers
Cooling/refrigeration: Larger-scale solar PV and
wind, biodiesel, and micro- and picohydro stations
(power generation of under 5 kW); biodiesel engines

8. Why does ARD research continues to fail
to link with the SME sector?

9.  Most businesses focus on managing their operations.They
are not necessarily focused on how to improve their
competitiveness through innovation
 Many businesses have limited ability to develop good
proposals. Developing concept notes and grant proposals
and assembling the required documentation entails
transaction costs (time, resources).
 The challenges of working with smallholders in out grower
schemes limits the private sector’s interest in submitting
proposals

10.  Limited experience and mistrust
make the private sector reluctant
to engage with NGOs or
government-“driven” research
activities and thereby prevent
actors outside the private sector
from entering into collaborative
arrangements
 The private agri-sector may find it
very difficult (or reluctant) to
provide time and cash to match
the grant

11. 1. SME equity funds
2. Value chain based funding
3. National research calls
4. International funding
5. Investment funds

12. The Delegation of the European Union to Uganda launched in
2015 a SME Development Fund (Equity Fund) It will be open to
all sectors of agribusiness, including livestock.
Invest in commercially viable enterprises with strong growth
potential that empower smallholder farmers in Uganda to
increase their revenue, livelihood
Fund size: USD 30 million (at first closing) – EU will invest EUR
10 million
Investment period: 5 years
The EU/Uganda aims at targeting at least 25-30 companies
with the first closing of the fund.

13. The set up of this fund was
informed by a study on the
commercial beef industry.
The overall objective of this
study was to contribute
towards obtaining an insight
into the beef value chain in
order to design interventions
that lead to commercial
sustainable solutions that
contribute to better
performance through a
public-private partnership
with focus
on small and medium
enterprises.

14.  ICCO Cooperation, an international Dutch development
organization launched in May 2015 its Agri-Business
Innovation Challenge
 The purpose is to kick-start and boost the business of
innovative agri-entrepreneurs in Uganda.
 There will be cash prizes up to EUR 20,000 for the three most
promising businesses to roll out their business models, and a
chance to qualify for investment by the ICCO Investment
Fund.

15.  Some countries have managed to put in place
structures or platforms to encourage
operational use of research results by
producers and took a serious option for
solving the problem of financing the system.
 Public funding (donors or national subsidies)
can complement participants’ fees: a % of the
increased global turn-over of a value chain,
on charged services

16. In Ivory Coast 18 value chains work with the
Fonds Interprofessionnels de la Recherche et du
Conseil Agricole (FIRCA) and 13 to 14 are
collecting fees.
The value chain actors identify the projects
which FIRCA finances in the field of applied
research, agricultural advice, technical training
and the reinforcement of capacities.
Examples: hevea , palm oil, coffee, cacao,
pigs, poultry, fruit-citrus

17. In Burkina Faso, the Ministry of Research
Science and Innovation created in January 2011
the National Fund for Research and Innovation
for Development (FONRID).
orientation of research towards demand and
national priorities;
improving the quality of scientific research;
the promotion of invention and innovation;
diversification of the scientific, technical and
financial partnership.

18. In Senegal, In Senegal the Fonds National de
Recherches Agricoles et Agro-alimentaires (FNRAA)
offers competitive funds for research addressing
the real needs of producers & private sector.
FNRAA is a mechanism for funding public
agricultural research since it involves innovative
farmer organizations directly via the Conseil
National de Concertation et de Coopération des
Ruraux in its decision-making and evaluation.
It allows research orientation to the demands
made by the producers and agribusiness needs.

19.  GlobE - Global Food Security.
Federal Ministry of Education and Research of Germany
 Reduction of Post Harvest Losses and Value Addition in
East African Food Value Chains (University of Kassel):
pastoral meat value chains
 Trans disciplinary research: Stakeholder processes,
knowledge integration and collaborative learning
 Two Dutch Funding instruments on food
security challenges
Netherlands Organisation for Scientific Research
 the Global Challenges Programme
 the Applied Research Fund : involvement of practitioners

20. Rabobank Foundation supports
African exporters of fruits and
vegetables can benefit from slow capital
farmers to combine forces by forming
cooperatives
the purchasing power, the sales
position and obtain financing to develop
farming and export operations.
It allows to commission research
according to FO and private sector
priorities
22 June, 2015. Utrecht. Rabobank.
Conference "The Future of Farming
and Food security in Africa".