Due Diligence of an Agricultural Service Provider in Senegal

2018-08-31 - 2018-10-31

Since 2017, LFS has been advising KfW on a series of financing transactions with organizations and enterprises that support smallholder farmers in different parts of Sub-Saharan Africa. This included financial and business model due diligence, evaluation of past impact evidence, and the design of accompanying technical measures for these investees (such as support in creating E&S risk management systems). One of the entities reviewed for KfW was a social enterprise based in rural Senegal which provides financial and non-financial services to more than 45,000 smallholder farmers in different parts of the country (with a focus on maize, millet, groundnuts, watermelon and hibiscus). The due diligence involved a combination of on-site and off-site work. Following the successful completion of the due diligence, LFS was selected for a follow-up project with the same organization to support the development of a social and environmental management system. The budget of this follow-up project, which is currently ongoing, is not included in the above-indicated budget figure.
Business due diligence Financial due diligence (incl. model review and sensitivity analysis) Analysis of available impact evaluation data Analysis and forecasting of social return on investment Environmental and social risk assessment Review of supply-side and demand-side market information Review of commodity price trends