The Fund is sponsored by Sanlam Private Equity, (“SPE”), a division of Sanlam Investment Management. SP-aktif (Pty) Ltd, and Makotulo Agrifund Investments (Pty) Ltd (“MAI”). SPE is based in South Africa and has an 11 year private equity track record and more than ZAR6 billion of assets under management. SP-aktif is an investment and management services firm based in South Africa with a 10-year track record as transaction advisor and investor in the agribusiness sector in Southern Africa. MAI is a women-controlled agribusiness black economic empowerment (“BEE”) Consortium based in South Africa that promotes women participation as owners and managers at all levels of the agricultural production and marketing chain.

The Fund has a target commitment size of USD100 million. The proposed IFC investment is $7 million in equity in the PCC.

7.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	7.0

* These investment figures are indicative

The Fund will invest in Sub-Saharan Africa with a focus in Southern and Eastern Africa. The management team will be based in Cape Town, South Africa and Nairobi, Kenya

The Fund will contribute to the economic development of the Region by helping to provide scarce development capital that is not likely to be satisfied by the Region’s debt and equity capital markets. The management team expects to take an active role with its portfolio companies to ensure that they have sufficient resources to pursue their growth strategies, strengthen its corporate governance, and achieve operational, financial and costs improvements. The growth and success of these companies, in turn, will have a positive impact on food production, exports, job creation and formalization, increased employee benefit coverage, development of employee skills, transfer of knowledge and consumers in the Region.

IFC will assist the Fund Manager to structure the Fund according to the international best practices. IFC will continue to play a critical role by supporting an emerging fund manager to secure the targeted fund size at final closing at a time when risk capital providers have retreated from the market due to the global financial crisis. In addition, IFC will assist the Fund Manager to establish best-practice corporate governance and E&S standards in its investee companies. Furthermore, IFC will provide industry and regional expertise on portfolio companies.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined as the Applicable Performance Requirements (i) the IFC FI Exclusion List, (ii) the applicable National Social and Environmental Laws and Regulations and (iii) the IFC Performance Standards. IFC also reviewed the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). Based on the assessment the Fund Manager will be required to (i) finalize the SEMS, prior to commitment, to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements, (ii) identify responsible, qualified persons to manage and implement the SEMS, (iii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, (iv) notify IFC if a proposed Portfolio Company conducts or intends to conduct any Category A or Category B activity, and (v) submit a periodic report to IFC as per a format to be provided by IFC. Additionally, IFC will review the implementation and performance of the Fund’s SEMS for the first three projects subsequent to IFC''s investment, to ensure that the Fund’s SEMS is robust.