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.
“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.”
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.