Africa Agriculture Trade and Investment Fund: Higher incomes, greater food security.

The Africa Agriculture Trade and Investment Fund (AATIF) is a successful example of how the financial industry creates long term value and works locally to promote food security. This innovate public-privatepartnership was created by KfW Development Bank and Deutsche Bank on behalf of the Federal Ministry for Economic Cooperation and Development. Deutsche Bank acts as the investment manager.

Admassu Tadesse, CEO of PTA Bank, Bujumbura, Burundi

“We were the first financial institution to draw on financing from the Africa Agriculture and Trade Investment Fund (AATIF), a development fund dedicated to promoting agriculture and trade in Africa. As the AATIF’s manager and PTA Bank’s long-term business partner, Deutsche Bank initiated contacts for us, provided us with funding on good terms and helped us to establish successful business relationships.”

Admassu Tadesse CEO of PTA Bank, Bujumbura, Burundi

The aim of the fund

The aim of the fund is to grow the potential of Africa’s agriculture for the benefit of the population working in this sector. Its focuses are: sustainably stimulating the incomes of agricultural workers, advancing food security, and making local businesses more competitive.

Globalization has spurred trade – including trade of agricultural and manufacturedproducts – across the world. However, low income countries largely remain exporters of raw materials lacking substantial local value addition. Although the African agricultural sector still faces barriers to be overcome, it also holds enormous potential. Thus, great importance is attributed by AATIF to promoting investments along the entire agricultural value chain. The fund will strive to improve agricultural practices to increase crop yields or assist in building storage and processing capacity to broaden local value addition.

For food to become cheaper and more plentiful, agriculture must first become more productive, more efficient and sustainable. That means huge investments. Read more: Agricultural investments for more productivity and sustainability.

Facts and figures

USD 135 million of fund assets

When the fund was launched, the Federal Ministry for Economic Cooperation and Development invested EUR 45 million, while KfW and Deutsche Bank each invested EUR 20 million. Under the administration of Deutsche Bank, this capital grew steadily. At the end of 2012, the AATIF – under the participation of private investors – had fund assets of USD 135 million.
Good to know: Investment managers
As investment manager, Deutsche Bank locates and assesses investment opportunities, conducts due diligence and prepares investment proposals. Final decisions on investments are made by the Investment Committee, of which Deutsche Bank is not a member. Deutsche Bank supervises existing investments and reports periodically to the fund’s shareholders. It also holds a considerable position of Class B shares.

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