Moringa | A Sustainable Agroforestry FundWorkshop 4 : Investing into Sustainable Agriculture and Food Production

Tuesday, 28th October – Vrije Universiteit, Amsterdam

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Agroforestry is the spatial or temporal combination of trees and crops or animals, with biological, social and economic synergies leading to higher productivity, reduced risks, a more stable income for local populations, and positive environmental impacts

<+Examples of biological interactions :

Better use of sun light

Better use of water

Biological regulation of pests

Global profitability

Social benefits

Environmental impacts

Moringa | agroforestry: what is it?

Coffee under shade Sylvopastoralism

Acacia intertwinned with cassava

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Moringa | investing in agroforestry

Sustainable production of agri and timber products is a key to successfully combating deforestation and climate change

Agriculture is by far the main driver of deforestation

Deforestation has direct environmental impacts: climate change (17% of GHG emissions), droughts and flooding, soil erosion, biodiversity destruction

Monospecific plantations do not offer a sustainable alternative : biodiversity loss, eviction of local

communities, competition with agricultureConservation programs do not necessarily enable economic and social development for communities

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Moringa | working with smallholders brings

value

A small nucleus plantation

Smallholders interested in increasing their incomes

A simple plant to process their products (sawmill, press…)

Limited or no land acquisition

Reduced risk of social conflict

Reduced capital requirements

Optimum cash flow profile

Understanding the outgrowers / cooperative structures is essential

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Agroforestry provides a sustainable and profitable alternative to the unsustainable land use scenarios that drive deforestation

Compared to these scenarios, well designed and well managed agroforestry projects provide:

better risk mitigation in the short and long run

higher profitability in the long run

Moringa | investing in agroforestry

Mono culture

Timberplantation

Soy, etc. Eucalyptus, etc. Timber,

biomass… from mixed species

Food crops

Cash crops

Agroforestry synergiesEnvironmental services

Increased and diversifiedrevenues

Reduced risksTechnical risks

Environmental risks: soil exhaustion, fire, wind, pests

Social risks: food competition,eviction of communities

Market risks: Price volatility

Regulatory risks: Local & InternationalP

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Profitable & sustainableagroforestry

Env. risks

Social risks

Market risks

Reg. risks

Tech. risks

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Moringa | investing in agroforestry

• Compared to conventional timber and agricultural projects, agroforestry delivers a better risk / return through a more intense land use at reduced costs, with a diversified income base over the investment period

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Portfolio | Example of investment (West Africa)

Description

Development of jatropha / sunflower agroforestry plantations with smallholders organized in

cooperatives

Local processing and sustainable production of edible oil, biodiesel, organic fertilizer,

proteins for livestock

Strong local and industrial partners

Deal rationale

Excellent balance between products that have different and complementary growth drivers

Solid smallholder basis provides strong local legitimacy

An attractive financial return based on diversified risk

A strong S&E impact and excellent match national development agendas

Fund role and value

Equity investor alongside the local partner and a large agro industrial

Technical support from Moringa’s technical partner ONF International and its scientific

partners (ICRAF, CIRAD, IRD)

R&D and education programs to reinforce the E&S impact of the project via TA Facility

Impacts

Enhancement of livelihoods of several thousands of farmers in poor, remote areas of Africa

Enhancement of resilience of agricultural land (fertilization of soils, protection against

erosion, etc.) subject to climate change

Production of renewable energy, climate change mitigation

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Description

Developing coffee under mahogany tree shade on a fully owned plantation and promoting

the scheme amongst surrounding outgrowers

Production of high end coffee for the local and international market and processed

mahogany for local and international cabinet-makers

Strong successful local partner; one of the first coffee producers in Brazil implementing a

diversification strategy

Deal rationale

Coffee production provides early cash flows; Mahogany is a becoming extinct timber specie

with a high selling price giving return on the long term

The outgrowing scheme will increase the production and reinforce the project with less

capital investment;

An attractive financial return based and a strong social and environmental impact

Fund role and value

• Equity investor alongside the local Brazilian partner

Technical support from Moringa’s technical partner ONF International and its scientific

partners (ICRAF, CIRAD, IRD)

Impacts

The outgrowing scheme will create a positive supportive environment for the project

Certification like Fair Trade or demanding environmental certifications will be obtained

The project will enhance with endemic trees the “reserva legal” which according to the

Brazilian legislation is a part of the plantation that is set aside for conservation

Portfolio | Example of investment (Brazil)

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Disclaimer

Moringa Partnership SAS makes no representation regarding the accuracy, reliability or legality of the information contained in this document. Past

performance is not a guarantee of future returns. The value of investments may fall as well as rise. In addition, the contents of this document are not

intended to constitute financial advice and readers thereof should consult their legal and/or financial advisers before concluding any transaction on the

basis of the information contained herein.

The project information presented in this document are based on the documentation given by the project operators to Moringa Partnership SAS. It has thus

not yet been tested and analyzed. The numbers presented are based on an average scenario.

This document does not constitute an offer or solicitation for any services or products in any jurisdiction in which such offer or solicitation is not authorized.

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Moringa Partnership SAS shall in no event be liable for any damages arising out of or in connection with the reliance on the information contained in this

document. This presentation is subject to French law, with exclusive jurisdiction in France.