Proposals in active pipeline

Impact Angola Catalytic Finance

Country
Angola
Region
Africa
Cluster
Agriculture and Food Security
Status
Proposals in active pipeline
Credits © UNICEF/UN067894/Gonzalez

Financials

Prepatatory Funding (USD)
250,000
Estimated Leverage (USD)
95 mln

Proposal

Challenge

Angola is a low-middle income economy suffering from comparatively high wealth concentration and poverty rates. Poverty is concentrated in rural areas where 80% of agricultural producers are subsistence farmers. The development of the poultry value chain is a market opportunity with potential high impact on poverty reduction. Poultry is one of the most consumed meats in Angola, but it is largely imported because poultry feed is not grown in sufficient quantities. The vast majority of Angola's poultry producers are family farmers who are at risk of poverty. Limited access to technical expertise, affordable capital and the high cost of imported feed leads to low profitability and competitiveness, and a large food import bill, with an estimated US$419 million spent on poultry imports in 2018.


Innovation

The proposal aims to mobilize capital and enhance competitiveness in the poultry value chain. This project proposes two blended finance facilities to revamp Angola's chicken value chain and make it more sustainable. The first facility is a US$15 million closed-end debt-based fund that is de-risked with a "first loss" layer and regulated by the Angola National Capital Market Commission. The second is a larger US$80 million blended finance facility, that will use a combination of grant, debt and equity to scale up investment in related value chains. 


UN Implementers


FAO Logo
undp-logo
UNFPA

Partners


IFC
African Development Bank
Atlantico-Banco Millenium Atlantico
Angolan Development Bank (BDA)

Fund for Agriculture Development (FADA)

Angola - Capital Partners

Coopera - Faje Credit Cooperative

Angolan Industrial Association

SDG Impact

By leveraging US$95 million from the private sector, the proposal aims to increase the earnings of at least 4,000 family farmers, and enhance the competitiveness of at least 120 micro, small and medium sized enterprises. It will do this by providing the financing to enable domestic producers and businesses to sell approximately 10 Metric Tons more of poultry each year for three years, ultimately increasing domestic poultry production and sales by 123%. At the same time, to enable this increase in poultry production, it will increase maize and soya production for poultry feed by 68,000 and 41,500 metric tons respectively. Activities will prioritize women farmers to reduce gender inequality and empower women.




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