Agro-industrial processing

Agro-industrial processing

Photo by Shutterstock

Agro-industrial processing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Establish agro-industrial processing facilities across the value chains in the Special Agro-Industrial Processing Zones (SAPZ).

Expected Impact

Increase value added in food chains, strengthen economic growth and generate decent jobs.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Annually, Nigeria imports over USD 300 million worth of dairy products alone.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
TAMARAP products on table
Photo by TAMARAP
Case Study: TAMARAP provides healthy plant-based solutions with international quality standards
Tamarap International Company Limited (TAMARAP), a finalist of the EU-UNDP Nigeria Growth Stage Impact Ventures (GSIV), is a Nigeria agri-business focused on alleviating malnutrition in Africa and beyond by providing healthy plant-based solutions produced locally with international quality standards. The company was established in 2014 in Lagos and supplies dietary and nutritious products through its brand “PachaMama Foods”.
TOMATO JOS products
Photo by TOMATO JOS
Case Study: TOMATO JOS makes retail-packaged food products for consumers across all income brackets
Established in 2014, TOMATOS JOS Farming and Processing Limited, a finalist of the EU-UNDP Nigeria Growth Stage Impact Ventures (GSIV), is a social enterprise based in northern Nigeria that makes retail-packaged food products for consumers across all income brackets, sourcing raw materials from a network of smallholder farmers who have been transformed from subsistence growers to profitable commercial farmers.
Sector Sources
  • 1) Federal Republic of Nigeria (2017). Implementation of the SDGs: a national voluntary review. https://sustainabledevelopment.un.org/content/documents/16029Nigeria.pdf 2) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G. (2019). Sustainable Development Report 2019. New York: Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN). 3) Federal Republic of Nigeria (2017). Economic Recovery and Growth Plan 2017 - 2020. Abuja: Ministry of Budget and National Planning. 4) Dalberg (2020). Charting the future for Africa's largest economy: Economic impact of COVID-19 in Nigeria. https://dalberg.com/wp-content/uploads/2020/04/FINAL_Dalberg-Report-Charting-the-Future-of-Africa%E2%80%99s-Largest-Economy.pdf 5) Federal Republic of Nigeria (2011). Agricultural Transformation Agenda 2011.
IOA Sources
  • 6) African Development Bank (2020). Nigeria: Investors say African Development Bank's Special Agro-Industrial Processing Zones will dirve agricultural revolution. https://www.afdb.org/fr/news-and-events/nigeria-investors-say-african-development-banks-special-agro-industrial-processing-zones-will-drive-agricultural-revolution-19246 7) Nigerian Institute of Animal Science (2020). Business models for scale-up entrepreneurship in the Nigerian livestock industry. https://nias.gov.ng/BUSINESS%20MODELS%20FOR%20SCALE-UP%20ENTREPRENEURSHIP%20IN%20THE%20NIGERIAN%20LIVESTOCK%20INDUSTRY.pdf 8) African Green Revolution Forum (2020). The Agribusiness Deal Room at the 2019 African Green Revolution Forum (AGRF). https://agrf.org/dealroom/wp-content/uploads/2020/07/Agribusiness-Deal_Room-AGRF-booklet_020919.pdf 9) African Development Bank (2020). Nigeria: Investors say African Development Bank's Special Agro-Industrial Processing Zones will dirve agricultural revolution. https://www.afdb.org/fr/news-and-events/nigeria-investors-say-african-development-banks-special-agro-industrial-processing-zones-will-drive-agricultural-revolution-19246 10) National Agency for Food and Drug Administration and Control (2017). About NAFDAC. https://www.nafdac.gov.ng/about-nafdac/nafdac-organisation/ 11) Omojokun, J (2012). Regulation and Enforcement of Legislation on Food Safety in Nigeria. https://www.intechopen.com/books/mycotoxin-and-food-safety-in-developing-countries/regulation-and-enforcement-of-legislation-on-food-safety-in-nigeria 12) Innov8nigeria (2012). President GE Jonathan inaugurates the Agricultural Transformation Implementation Council (ATIC). https://innov8nigeria.wordpress.com/2012/05/14/president-ge-jonathan-inaugurates-the-agricultural-transformation-implementation-council-atic/ 13) Federal Ministry of Agriculture and Rural Development (2012). Agricultural Transformation Agenda: We Will Grow Nigeria's Agricultural Sector. http://unaab.edu.ng/wp-content/uploads/2012/10/Agricultural%20Transformation%20Blue%20Print.pdf 14) Federal Ministry of Agricultural and Rural Development. Agricultural Policy for Nigeria. http://extwprlegs1.fao.org/docs/pdf/nig149296.pdf 15) 12) Innov8nigeria (2012). President GE Jonathan inaugurates the Agricultural Transformation Implementation Council (ATIC). https://innov8nigeria.wordpress.com/2012/05/14/president-ge-jonathan-inaugurates-the-agricultural-transformation-implementation-council-atic/ 16) Asanita (2021). Utilization of cassava. https://www.asanita.com/ 17) Federal Republic of Nigeria (2020). Integration of the SDGs into National Development Planning: A Second Voluntary National Review (2020). https://sustainabledevelopment.un.org/content/documents/26309VNR_2020_Nigeria_Report.pdf 18) Federal Republic of Nigeria (2017). Implementation of the SDGs: a national voluntary review. https://sustainabledevelopment.un.org/content/documents/16029Nigeria.pdf 19) UNDP (2020). Human Development Report (2020). https://www.ng.undp.org/content/nigeria/en/home/library/human_development/the-2020-human-development-report.html