Partnering with Investors for SDGs in the Caribbean
Explore the strategy, experiences, and projects focused on partnering with private national and foreign investors to advance the Sustainable Development Goals in the Caribbean. Learn about the initiatives spearheaded by Vassel E. Stewart, President of the Caribbean Agribusiness Association (CABA), aimed at attracting investment and driving socio-economic impact in the region.
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STRATEGY, EXPERIENCES & PROJECTS RE STRATEGY, EXPERIENCES & PROJECTS RE- - PARTNERING WITH PRIVATE NATIONAL & PARTNERING WITH PRIVATE NATIONAL & FOREIGN INVESTORS TO MOVE SDG AGENDA FOREIGN INVESTORS TO MOVE SDG AGENDA IN THE CARIBBEAN IN THE CARIBBEAN Presented by Vassel E. Stewart President Caribbean Agribusiness Association (CABA)
SYNOPSIS OF CABA SYNOPSIS OF CABA A not- for-profit for development company private sector company with a public sector mandate; Mechanism for facilitating private-private and public-private dialogue and cooperation -through the AFNC & COTED Agriculture. Facilitating the organization and co-ordination of the SME Sub-sector-through local CABA Chapters. Lead the development of the regional herbs and spices industry. Facilitating Investment in the sector, with a target of US$ 1 Billion by 2024, particularly in the priority commodities and the agro-recreational tourism subsector.
The 17 Sustainable Development Goals (SDGs) The 17 Sustainable Development Goals (SDGs) : : GOAL 1: No Poverty GOAL 2: Zero Hunger GOAL 3: Good Health and Well- being GOAL 4: Quality Education GOAL 5: Gender Equality GOAL 6: Clean Water and Sanitation GOAL 7: Affordable and Clean Energy GOAL 8: Decent Work and Economic Growth GOAL 9: Industry, Innovation and Infrastructure GOAL 10: Reduced Inequality GOAL 11: Sustainable Cities and Communities GOAL 12: Responsible Consumption and Production GOAL 13: Climate Action GOAL 14: Life Below Water GOAL 15: Life on Land GOAL 16: Peace and Justice Strong Institutions GOAL 17: Partnerships to achieve the Goal
THE AGRIBUSINESS SECTOR HAS DIRECT or THE AGRIBUSINESS SECTOR HAS DIRECT or INDIRECT INDIRECT IMPACT ON ALL THE SDGs IMPACT ON ALL THE SDGs. .
Key to Attracting Investors Key to Attracting Investors EVIDENCE OF FINANCIAL VIABILITY and increasingly, evidence of social, economic and environmental impact; In this respect they look for; 1. Convincing Business Model 2. Secure market arrangements 3. Confidence in the firms management 4. Supporting & stable public policies 5. Supporting institutions 6. Risk management strategy
CONTEXT WITHIN WHICH WE ARE SEEKING TO ATTRACT INVESTMENT CONTEXT WITHIN WHICH WE ARE SEEKING TO ATTRACT INVESTMENT STRENGTHS/OPPORTUNITIES: Caribbean has one of the highest incidences of NCDs globally- (strong market for healthy foods), One of the highest levels of food imports per capita ( some US4.6B opportunity for displacing imports) Among highest tourist visits per capita and the most tourism dependent Region in the world. (Captive market) It is recognized as a world leader in producing agricultural products and foods of the highest organoleptic/flavour qualities.(sustainable competitiveness) Developments in the use of digital technologies (opportunities for leveling the playing fields) block chain, robotics, artificial intelligence, drones, sensors, mobile APPS) new processing technologies (e.g. high -pressure processing)
CONTEXT WITHIN WHICH WE ARE SEEKING TO ATTRACT INVESTMENT CONTEXT WITHIN WHICH WE ARE SEEKING TO ATTRACT INVESTMENT Weaknesses & Threats Declining public sector investment (infra-structure, R&D) Inadequate access to financing ( particularly for SMEs.) More pervasive non-tariff barriers (traceability, food safety) Concentration of and abusive use of buyer power, particularly by large retail chains, Predatory pricing by multi-national agri-input suppliers( crop protection inputs) More stringent consumer requirements(safety, health, quality, social, environment) Increasing food insecurity (supply risk, accessibility, utilisation) Increasing climate change based risk (hurricane, drought, salt water temp. changes)
STRATEGIC RESPONSE STRATEGIC RESPONSE Two (2)clear strategic paths, one that targets the regional food import market and the other target high end export market niches. Development in the sector must be driven by strong public private partnership in which the private sector takes leadership. The scope and nature of the transformation required in the sector call for new types of private sector companies whose priority is as much the growth and development of the sector as it is profits for their shareholders- Social impact investors. Governments must hasten to implement policies with regard to agriculture & food production and trade that will attract investments in the targeted market segments.
CABA /CADCO STRATEGIC APPROACH OUR VISION Become a leader in diversifying and growing the CARICOM agribusiness sector by attracting investments in ventures to produce medicinal/functional foods and agri-recreational tourism services that will lead the fight against Non-Communicable Diseases (NCDs) OUR MISSION To proactively attract investment into profitable and sustainable ventures in the medicinal/functional food and agri-recreational tourism industries in CARICOM through securing viable markets and utilizing strategic partnerships, cutting edge technologies to produce products and services that will prevent and reduce the effect of NCDs.
CABA CABA 6 6- - Pillar Pillar STRARTEGY STRARTEGY- - 1. Establishment of an Caribbean Agribusiness Development Company (CADCO) that will identify and develop bankable proposal, assist firms in attracting financing and thirdly, provide technical services to help firms develop and operate their businesses. 2. The establishment of a franchiseable competitive agribusiness system called the SHACS AGRIBUSINESS SYSTEM, Safe, Healthy, Affordable, Convenient and Sustainably (SHACS) food production and agri- recreational tourism products and services. 3. Establishment of a franchiseable agro-recreational tourism business model called Good Life-ART . A commercial integration or direct linking of agribusiness, recreational and tourism ventures and activities into one integrated operation that allow visitors the opportunity to experience the products and services as one package
CABA/CADCO STRARTEGY CABA/CADCO STRARTEGY 4. Establishment of large sustainable markets for CARICOM produced foods comprising 3 specific market niches, namely; (i)Healthy Household-home delivery Clubs. (ii) Organic and functional foods and food ingredients market. (iii) Franchised Restaurant Chain market. 5. The establishment of a CARICOM Agribusiness Investment Facility (US$1 Billion by 2024) comprising two components, Caribbean Agribusiness Investment Fund (CAIF) The Stock-market Crypto-Fiat Crowd Financing Mechanism. 6. Acquisition of cutting-edge technologies at all levels of the value chain, through partnerships with firms that supply such technologies. (block chain, robotics, artificial intelligence, drones, sensors, mobile APPS) new processing technologies (e.g. high pressure processing.
Types of Investors Types of Investors- -Sources of Private sector investment Sources of Private sector investment INDIVIDUAL INVESTORS Subsistent & Small Farmers Individuals who invest in primary production most often out of necessity. Large farmers: Individual who have specific interest in agriculture and see opportunities for obtaining significant returns of there investment. Entrepreneurs- Individuals motivated to create new agribusiness ventures anywhere along the value chain. Crowd Funders--Individuals who invest small amount of money that they can afford to loose without financial distress in causes they support. Angel Investors-High net-worth individuals usually with some social interest who arealso seeking to grow their income through diversification in various types of business.
Types / Sources of Private Sector Investment Types / Sources of Private Sector Investment INSTITUTIONAL INVESTORS Venture Capital Firms- funding for start-ups with high potential returns. Stock Exchange Philanthropic organisations/foundations Investment banks Commercial banks Credit Unions Insurance companies. Mutual funds
Some CABA Partnership Experiences Some CABA Partnership Experiences Trinidad & Tobago NADP Partnership between private sector & government of Trinidad & Tobago. Through this; TTABA/processor and largest regional agri-input supplier and large national (importer /wholesaler/distributor/retailer) invest jointly in large farm operation. TTABA/processor with largest regional restaurant chain company for production of ingredients for pepper sauce for the chain. TTABA/processor & large international fast food firm for production of sweet potato fries. TTABA/processor &Trinidad &Tobago bakery association supply cassava puree for various bakery products from cassava. TTABA/processor- Large national food importer distributor proposal for contract production of a range of beverages, sauces, gluten free flour. CABA & Trinidad investor & Compete Caribbean coconut water production in Guyana for export . CABA & CABEXCO Regional joint venture company for food export under common brand involving 12 CARICOM SME S.
Other Partnerships Other Partnerships CAIPA/CABA MoU- objective is to function as the technical support arm of CAIPA to pro-actively bring investment opportunities as bankable proposals to market/investment forum. Mou with TE-FOOD Inc, a leading German based farm-to-table fresh food traceability ecosystem on blockchain that provides traceability solutions for major supermarket chains in Europe and Asia. Establishment of an alliance with H2K Agro, Canadian firm, a division of Health 2000 Canada Inc. a pharmaceutical and medical supplies manufacturer a and now a producer organic and safe food production inputs and production protocols for various crops. Establishment of MoU with FAO, IICA and CARDI. Through these, CABA has undertaken training of bakers in 10 CARICOM countries in the utilisation of cassava and other root crops in the baking industry, prepared investment profiles for producing cassava mash for the bakery industry. Through the MoU with IICA, CABA has also prepared bankable investment proposals for the production of turmeric powder and moringa leaf powder under intensive production systems for small, medium and large-scale operations. Establishment of contract with CTA to work with Te-Food and H2K Agro to implement a pilot project for safe and traceability food system for a multi-product vegetable pack .
Pipeline partnerships under discussions Pipeline partnerships under discussions With the CDB to finance the development of several bankable investment proposals. With the leading stock exchange in CARICOM for facilitating our stock-market Crypto- Fiat Crowd Financing Mechanism. With a financing company based in North Carolina USA, that facilitates access to large scale project financing utilizing several sources of financing including the USA Direct- Pay Letter of Credit Programme (DPLC). With major international organic/functional food distributor and investor with offices in several European countries and the USA. With a large CARICOM food and feed processor and distributor to produce cassava for the food and feed industry. With a major green house/Controlled Environment technology provider in Holland.
Pipeline Projects to be Developed into BIPs Pipeline Projects to be Developed into BIPs Establishment of 20,000 acres Integrated crop, livestock and fish farm along and agro-processing infra-structure in Guyana for production of functional food. Estimated investment cost US$150-200 Million. Investment in the Establishment of A Contract Agro-Processing Services Centre in Guyana, Trinidad & Tobago, Jamaica & Bahamas. Estimated US$20-25M Agro-recreational Tourism Project in Jamaica Agro-tourism project on 10 acres of lands located next to the famous Boston Jerk Centre and the beach in Boston, Portland Jamaica. Estimated capital US$10-12M Agro- recreational Tourism Project in Trinidad- Agro-tourism project on a 127 acres cocoa estate in the Picturesque Santa Cruz Valley in Trinidad. Estimated cost US$15-20-M. Agro- recreational Tourism Project in Trinidad- Agro-tourism project on a 5- acres close to the major beach in the country. Estimated cost US$2-3M.
Pipeline Projects to be Developed into BIPs Pipeline Projects to be Developed into BIPs Expansion of The Operation of Global Seafood Distributors A fish processing company in Guyana supplying domestic and export markets. Estimated cost US$4-6. Investment in (CADCO s) Regional Agri-entertainment Festival This will be an annual event which will facilitate investments in competitive new products development and investment pitching and create syndicated television and video content for global multi-media promotion and on-line sales of these products. Estimated cost US$1-2M Investment in the Caribbean Agribusiness Export Company (CABEXCO s) A Regional Export Marketing Company Established by a Group of SME s Firms Allowing for Joint Marketing Under A Common Brand. Estimated cost US$1- 2M
One example of work we are doing with one Island One example of work we are doing with one Island We are currently working with an Island to prepare investment profiles for the following community based agribusiness and agro-recreational ventures that we work with them to identify; Goat Cheese & yogurt production for a community based women group. Fresh produce packing house for farmers. Organic greenhouses vegetables and herbs production for a women s and a youth group. Community based staples production and processing venture. Commercial animal racing venture Mariculture products production venture. When each proposal is prepared we will host an investment forum at which it will be presented to investors, who we hope will bid to invest in the ventures and partner with the communities and social groups. Estimated cost US$3-4 M
