Context
A mid-sized agribusiness cooperative in Angola was losing up to 35% of its fresh produce post-harvest due to lack of reliable cold storage.
The cooperative wanted to install solar-powered cold storage units in 8 rural hubs to serve both farmers and exporters.
Despite the clear business need, the project struggled to secure financing due to unclear revenue models and lack of structured agreements with suppliers and off-takers.
Challenges Identified
1 – Fragmented Stakeholder Agreements
- Farmers, exporters, and local municipalities had no formalized contracts or shared investment structure.
2 – Unclear Financial Viability
- No detailed cost-revenue projections to demonstrate bankability.
3 – Technical Risk Perception
- Lenders concerned about long-term reliability of solar technology in rural conditions.
4 – Absence of ESG Positioning
- The environmental and social benefits were not quantified to attract impact investors.
CARMINVEST Advisory Approach
Step 1 – Business Model & Stakeholder Structuring
- Designed a Public-Private-Cooperative Partnership (PPCP) to secure commitments from all actors.
- Formalized supply and off-take agreements ensuring consistent usage and revenue.
Step 2 – Financial Modelling & Risk Mitigation
- Built a 10-year financial projection with scenario analysis.
- Introduced a maintenance and service fund to reassure investors on operational continuity.
Step 3 – Capital Mobilization Strategy
- Proposed a capital mix:
- 50% concessional loan from a development finance institution
- 30% equity from an agribusiness impact fund
- 20% cooperative contribution in kind (land & facilities).
Step 4 – ESG Framing & Reporting
- Developed metrics for CO₂ reduction, food waste reduction, and farmer income growth.
- Created an ESG reporting framework aligned with international standards (IFC Performance Standards).
Impact
- Reduction of post-harvest loss from 35% to under 10%.
- Storage capacity for over 4,000 tons of produce annually.
- Creation of 120+ permanent and seasonal jobs.
- Reduction of over 2,500 tons of CO₂ per year through renewable-powered storage.