Innovare Advisors

Direct investor

User Profile

Innovare is an alternative investment management company focused on food and agriculture. We facilitate the capital flow to small and medium enterprises (SMEs) involved in all aspects of food and fiber production and processing in emerging and frontier markets. Innovare is focused on financing sustainable, medium sized enterprises in the agribusiness value chain, especially in Sub-Saharan Africa. These businesses are developing new models for profitable and sustainable agriculture which engage and aggregate smallholder farmers in the food value chain, enhance rural livelihoods and improve nutrition. This approach and these models are based on understanding the wide-ranging interests of the numerous actors in the value chain and aligning them so the flow of agricultural products can expand to meet the needs of growing populations locally, regionally and globally.

IRIS Use

African SMEs face borrowing rates that are high, with burdensome collateral and guarantee obligations. In many cases, the SMEs are the companies which buy agricultural produce from small holders, increasing demand for locally harvested grains. SMEs welcome the availability of a new source of financing by way of access to financial leases, as opposed to operating leases, a form of asset based financing, as a method for purchasing equipment. Innovare uses IRIS-aligned metrics to quantify the benefits for direct and indirect beneficiaries. Those beneficiaries include: Direct Benefits: • Financiers: Competitive returns protected with multiple risk mitigation strategies • Manufacturers: Increased equipment sales facilitated by new financing sources, • Local leasing partner: Increased business driven by demand for agricultural equipment, and • African SME food and feed processors: The capability to (1) accelerate purchases of equipment to increase the processing of grains and soy, (2) increase purchases of grains and soya for processing, and (3) produce more nutritious food and feed locally. Indirect Benefits: • African farmers, including smallholders, who grow and sell grains: Increased sales to local processors; new markets for crops, • African livestock farmers: Increased supply of locally produced animal feed, • Food supply: Increased food for local and global markets, and • African consumers: Increased volume of locally produced, nutritious food and feed; Improved food availability and security; reduced food imports. Potential for exporting more processed foods.