Session

Financing Fundamentals for Agri Businesses

Find out how to build a consumer base and position yourself and your agribusiness brand to attract funding from big and reputable institutions

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About the Session

Agric entrepreneurs require finance to purchase equipment, input, fund marketing campaigns, farm improvements as well as operations costs. The potentials of agribusinesses are being recognized and accepted by Governments, institutional and private investors, who will readily make funds available to Agric brands who adequately position themselves to receive it. This means that small scale Agric entrepreneurs as well as established farmers can access capital in form of equity or credit to finance their businesses today.

For example, in 2020, President Muhammadu Buhari gave his consent to the amendment act of the Agricultural Credit Guarantee Scheme’s which provides guarantees for Agric Bank loans, increasing its share capital to 50 billion naira. There are also schemes like the NIRSAL Agric-Business Small and Medium Enterprises Investment Scheme, its being piloted by the Central Bank of Nigeria. At the institutional level, there are firms like Sahel Capital Agribusiness Managers Limited - a private equity firm focused exclusively on the Nigerian agribusiness sector, amongst others. Privately, more individuals are investing in small Agri businesses directly or through 3rd party entities.

But what do you need to do, to get capital? How do you position your Agri business to be in the right shape to attract capital either in the form of equity, grants or loans? If one is interested in investing Agric business, how do one go about it?


What will be covered?

This session will take participants through a 360 view on Agri business financing. - with emphasis on how to engage in Agri business financing, what financiers look out for and what Agric entrepreneurs need to do for their business to become attractive to investors. Participants will be exposed to:



Curriculum

  • The state of agri-business financing in Nigeria
  • People believe that raising capital is hard and you need to be “special” or “connected” to raise money for your business. Is this true? Does every serious agri-business out there have a chance to be able to raise finance for their business?
  • Examples of everyday agri-businesses that have grown through financing?

  • Describe the different types of funding agribusinesses can engage (savings, commercial debt, inventory credit, venture capital, angel investors, crowd funding, grants, etc)
  • What stage of business is each funding type suited for?
  • From what sources can you get each of these types of funding?
  • How can a potential investor engage any of these financing vehicles?

  • Why is it important to determine the worth of your agribusiness before receiving investment?
  • Describe different methods businesses can use to determine the worth of their business.
  • How should a potential investor approach business valuation, and how should a business valuation influence an investors decision on how much to invest?

  • What investors are looking for in determining whether or not to invest in an agribusiness.
  • Barriers to getting funding for your business
  • Defining the right timing to ask for funding
  • Practical tips for positioning to attract funding/investment for your business
  • What specific entities can an interested agri-business engage for capital (commercial debt, inventory credit or equity financing)

  • For individuals out there who would rather invest in an agri-business than build one, how do they start? – From discovering credible businesses, to conducting due diligence, determining how much to put in and monitoring their investment?
  • Are there credible platforms that potential agri-business investors can work with – to discover and make investments?
  • How does indices like exchange rate, interest rate & inflation impact on an agri-business investment, and how should it affect the decision making of an agribusiness investor?
  • What are the legal considerations (checklist of sort) that needs to be looked into before giving or receiving investment?

  • This session is dedicated to answering selected questions sent in by the audience on agribusiness financing fundamentals

Schedule

Wed, 07 Jul, 2021

13:30hrs, GMT + 1

Abuja

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