Development of an Irrigation-as-a-Service business in Africa: Key Issues for Bankability

Executive Summary

Agro InfraCo is launching an innovative Irrigation-as-a-Service (IaaS) initiative to provide on-demand irrigation services to a community of crop farmers in Plateau State, Nigeria. This project is designed to address the growing challenges related to water management that farmers in the region face, particularly in light of unpredictable rainfall and the limitations of traditional irrigation methods.

The project will be structured under the Special Purpose Vehicle (SPV) named AgriFlow Solution. The SPV will use the most advanced irrigation technology to ensure efficient and sustainable water use. The service is offered through on-demand irrigation services, making it affordable and accessible to smallholder farmers who might otherwise struggle with the high costs of modern irrigation infrastructure. The SPV which will coordinate project financing, contracts, and operation, is backed by Agro InfraCo and lenders and will generate predictable cashflows, ensure a fixed construction delivery, and adhere to best practices in governance and sustainability.

Key highlights of the Project:

Project Concept: innovative Irrigation-as-a-Service (IaaS)

Legal and Regulatory Overview: Compliance with Nigeria’s agricultural and water management laws, and environmental regulations.

Achieving Bankability: Predictable cash flows, fixed construction delivery, and sustainable governance.

Project Finance: Key project preparation requirements, available credit enhancements, and the role of government support.

Conclusion: The project’s strategic importance, robust financial plan, and sustainable design make it a critical infrastructure asset.

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Development of an Irrigation-as-a-Service by TAC Design

Learn More about YALIF

The Young African Leaders in Infrastructure Fellowship (YALIF), developed by The African Catalyst, is an 8-week initiative aimed at empowering young leaders to address critical infrastructure gaps across Africa. Targeting professionals aged 22 to 40, the program provides a blend of theoretical knowledge and practical applications through live sessions, project-based learning, and case studies. Participants will explore key topics, including early-stage infrastructure development, financing strategies, sustainability, and risk allocation, ensuring a comprehensive understanding of the infrastructure project lifecycle.

YALIF not only develops individual skills but also positions graduates to influence Africa’s infrastructure sector through transformative projects and innovative solutions. By bridging the gap between education and employment, the fellowship prepares its participants for roles in project finance, development consultancy, and governmental planning agencies. Ultimately, YALIF focuses on cultivating a new generation of leaders equipped to tackle the continent’s infrastructure challenges while driving sustainable development.

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APPLICATION OPENS JANUARY 2025

YALIF Fellow Profile

Mabi Mabalaka

Mabi Mabalaka is a finance professional specializing in Infrastructure Project Finance, with a Master’s degree from École des Ponts ParisTech and Level 3 CFA candidacy, seeking opportunities in the sector.

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