African SIDS Investment Proposal

African SIDS Investment Plans and Opportunities
HiH Investment Forum 2025
The investment proposal developed by the African SIDS is available to download and review in various languages below, including details on Investment opportunities.
African SIDS Bilateral Appointment
Coming soon in June 2025
African SIDS Proposal
The HIH Initiative uses geospatial, biophysical and socio-economic data, as well as advanced analytics to identify territories where agricultural transformation and sustainable management of forest and fisheries have the greatest potential for alleviating poverty and hunger. GIS analysts, economists, agronomists, and other experts bring analytics, models, and mechanisms to the Initiative. Numerous partnerships with leading research institutions across the world also enrich the informational and analytical content of these tools. The integration of technical tools informs policymaking and contributes to capacities of countries
African SIDS Geospatial Typologies
Agro-informatics connects information technology with the management, analysis and application of agricultural data to design more accurate and targeted agricultural interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.
Poverty
Potential
Efficiency
Click on individual maps to get detailed view on FAO GIS platform
African SIDS: Investment cases in African SIDS
African SIDS Investment Cases and Interventions
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Integrated value chains development
Strengths for investors:- Covers 7 major commodities with clear regional benefits.
- Madagascar anchors production and processing with large land availability; Comoros for bananas & poultry.
- Total capex USD 188.8 m, IRR 21.5%, NPV USD 33.9 m—meets expected FAO model returns (typically 15–25%)
- Blended finance: USD 97.2 m public, rest private—fits FAO blended financing approach (e.g., match-making at Forum)
- Targets both smallholders and commercial farmers—aligns with investor demand for scale plus inclusivity.
The total investment is estimated at USD 188.8 million, with USD 148.8 million allocated to Madagascar and USD 40 million to the Comoros. The initiative is expected to yield an internal rate of
return (IRR) of 21.5% and a net present value (NPV) of USD 33.9 million. Public investment amounts to approximately USD 97.2 million. The strategy covers 48,000 hectares, structured into production clusters, and targets both smallholder farmers and large-scale commercial operators with holdings exceeding 250 hectares, aiming to catalyze inclusive, scalable agricultural growth. The Ministry of Agriculture and Livestock in Madagascar has initiated land mapping to identify underutilized, cultivable land.
Key investment components include: restoration of soil fertility on 38,500 hectares of upland crops; irrigation development over 17,500 hectares through dam construction and renewable energy–based groundwater systems; improved access to quality seeds, fertilizers, and pesticides; adoption of climate-smart agriculture; and enhanced market access via rural road networks. Additional investments will focus on post-harvest handling, cold chain development, and agro-processing. Public sector support will strengthen the enabling environment, including digital tools for value chain traceability, extension services, quality control laboratories, R&D, and institutional capacity.
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Sustainable development of the Blue Economy
Investor appeal:
- Includes fisheries, aquaculture, by-catch processing—sectors with reliable demand and export potential.
- Public investment (USD 36.6 m) sets up environment; private builds processing in Seychelles and Mauritius—lean capital stack with strong projected IRR 20.6%, NPV USD 50.9 m.
- Focus on sustainability, stock management, regional coordination aligns with ESG and FAO sustainability agenda
The total estimated investment is USD 56.1 million, of which USD 36.6 million is public funding. The initiative aims to generate an IRR of 20.6% and an NPV of USD 50.9 million. Public investments will enhance the enabling environment for sustainable resource management, improve stock management and reinforce institutional capacity. Private investment will support the establishment of by-catch processing units in Seychelles and Mauritius, targeting the regional feed industry and promoting economic diversification.
Key activities include training and equipping artisanal fishermen, strengthening the regional fisheries information system, upgrading surveillance and monitoring systems, and building the capacity of public service providers. The project aligns with sustainability principles and offers potential for regional job creation, SME development, and increased export readiness.
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Regional market and trade integration
Investor-relevant highlights:
- USD 204 m investment, IRR 30%, NPV USD 271 m is highly attractive and competitive with other sectors.
- Measures like 50% tariff cuts, 80% non-tariff barrier reductions, 4-hour border delays savings—citing WB and IFPRI studies—are credible and clear.
- Listing expected GDP gains (0.3%), poverty reductions (~2.6 m), USD 23 m private-sector time savings adds measurable impact.
This intervention, estimated at USD 204 million, is expected to deliver an IRR of 30% and an NPV of USD 271 million. Benefits include increased rural GDP per capita and gains from a projected reduction of four hours in border crossing times. The investment targets significant improvements in
trade efficiency, with modeling based on World Bank data (2020) showing that a 50% reduction in tariffs and 80% reduction in non-tariff barriers can boost the region’s GDP by 0.3%, benefiting the rural population of this area of around 19 million people.
The initiative will also enable an estimated USD 23 million in private sector savings from reduced border delays. According to the World Bank (2020), implementation of the AfCFTA (ZLECAf) in this region could lead to a reduction of extreme poverty by 780,000 people and moderate poverty by 1.8 million. The project will finance trade facilitation infrastructure, regulatory harmonization, digital trade systems, and policy coordination platforms. It aims to create a coherent, competitive trade bloc that leverages comparative advantages across the region while improving resilience and market access for producers and exporters.

Contact
For more information, please contact the Hand-in-Hand team.