Feed the Future Nigeria Agribusiness Investment Activity Quarterly Progress Report

The project focuses on three interrelated components: improving the ease of doing business in the agricultural sector; broadening access to finance by mitigating the credit risks of agribusinesses; and promoting investment opportunities for agribusinesses to expand and scale up operations. The overall objective of the activity is to measurably improve the agribusiness investment climate, which plays a pivotal role in attracting foreign direct and domestic investment. The Agribusiness Investment Activity will integrate thousands of micro, small, and medium enterprises (MSMEs) and producer organizations as high-performing commercial actors in the rice, maize, soy, aquaculture, and cowpea value chains. The project will increase the competitiveness and returns of both large- and small-scale agricultural enterprises through streamlined regulations, more effective policies, improved production and processing practices, and significantly increased finance and investment flows. The activity will focus on working directly with existing private sector agribusinesses to support their growth and expansion. The CNFA team has collaborated with 15 large agribusinesses (Lead Firms) and more than 10 financial and investment institutions. The activity will build the capacity of these firms, along with participating enterprises in their supply and distribution chains, where applicable. The team will also work with public and private sector stakeholders on needed legal, regulatory, and policy reforms that constrain the growth and expansion of Nigeria's agribusiness sector. The Agribusiness Investment Activity aims to facilitate $100 million in new lending and $100 million in new investment across the five crops in the following seven designated States: Kaduna, Niger, Kebbi, Benue, Delta, Ebonyi, and Cross River. The project will increase the quality, quantity, market access, diversification, and competitiveness of Nigeria's agribusiness sector, in line with the U.S. and Nigerian Government's commitment to growing the non-oil based economy. Implementation of the activity began in December 2018 and will continue until December 2023. The project is being implemented by Cultivating New Frontiers in Agriculture (CNFA) with a budget of $15.6 million. The activity will be monitored and evaluated to ensure that it meets its objectives and achieves its desired outcomes. The quarterly report provides an update on the progress of the activity during the period of January 1 to March 31, 2019. The report highlights the progress made in implementing the activity's components, including improving the ease of doing business, broadening access to finance, and promoting investment opportunities. The report also provides information on the integration of crosscutting issues and USAID forward priorities, stakeholder participation and involvement, management and administrative issues, lessons learned, and planned activities for the next quarter. The activity has made significant progress in its first quarter, with the establishment of a project office in Abuja and the recruitment of key staff members. The team has also conducted a series of stakeholder engagement activities, including meetings with government officials, private sector representatives, and civil society organizations. The activity has also made progress in its component 1, improving the ease of doing business, by conducting a series of analyses and reform of select legal and regulatory constraints. The activity has also made progress in its component 2, broadening access to finance, by working with financial institutions to develop new financial products and services for agribusinesses. The team has also conducted a series of training and capacity-building activities for agribusinesses and financial institutions. The activity has also made progress in its component 3, promoting investment opportunities, by working with private sector agribusinesses to support their growth and expansion. The team has also conducted a series of stakeholder engagement activities to promote investment opportunities in the agribusiness sector. Overall, the activity has made significant progress in its first quarter, with the establishment of a project office, the recruitment of key staff members, and the conduct of stakeholder engagement activities. The team has also made progress in its components, including improving the ease of doing business, broadening access to finance, and promoting investment opportunities.