aBi Business Plan & Objectives Framework

Table 3: Objectives framework of the aBi Business Plan 2019-2023
Definition Key activities Key performance indicators
  • Long-term profitability and income of and employment creation by Ugandan farmers and agribusinesses increased
  • Growth of investments by beneficiary SMEs and commercialising producers from own resources or commercial loans
  • Number of additional FTE employment positions created by beneficiary agribusinesses and commercializing farmers
  • Growth in loan volumes of beneficiary FIs from own resources oriented towards agriculture
Result 1:
  • Smallholder farmers’ sustainable production, productivity and market integration increased
  • Number of additional beneficiary farmers who moved up at least one income level
  • Number of additional beneficiary farmers that are food secure
Output 1.1

Beneficiary smallholder farmers adopt and apply appropriate technologies that increase production, productivity and produce quality as per market requirements

IPs deliver practical training and demonstrations in economically viable production enhancing techniques, the proper use of inputs, climate and environmentally smart agriculture, and post-harvest handling to farmer groups
  • Number of additional beneficiary farmers that reach at least 75% of optimum yields* of selected VCs
  • Number of additional beneficiary farmers that adopt and apply at least 3 CSA and environmental practices as a result of an aBi intervention
Output 1.2

Beneficiary smallholder farmers establish, maintain and expand functional and profitable market linkages with off-takers

IPs assist farmers and farmer groups in identifying market opportunities, product quality standards, niche markets, bulking and aggregation and contract farming
  • Number of additional beneficiary farmers that engage in collective marketing
  • Commodity price premium realised by beneficiary farmers and farmer groups due to aggregation and or improved produce quality
Output 1.2

Beneficiary smallholders farmer’ production planning, financial planning and farm management improved

IPs assist farmers and farmer groups in (household) planning and decision making, gender equity, resilience and sustainability, and financial literacy
  • Number of additional beneficiary smallholder families that employ joint household planning
  • Number of additional beneficiary smallholders that maintain production and financial records
Result 2

Beneficiary agribusinesses business performance and sustainability improved

  • Improvements in financial performance measures (return on sales (RoS), return on assets (RoA), return on equity (RoE)) by beneficiary agribusinesses
  • Level of compliance of beneficiary agribusinesses with legal requirements (tax, environmental and labour laws)
Output 2.1

Beneficiary agribusinesses apply professional and socially responsible business planning and management

aBi staff and consultants advise ABs on business/ financial planning and management; governance and equity; labour, safety and environmental standards.

aBi finances professional staff in ABs for data collection and financial management for the duration of the grant contract

  • Number of additional beneficiary agribusiness that meet aBi's Environmental, Social and Green standards
  • Share of managerial, financial and operational business plan targets that are achieved in the BP lifetime
Output 2.2

Beneficiary agribusinesses’ downstream and upstream market access enhanced

aBi supports ABs in market research, product and market development, compliance with market standards, contract farming.

aBi supports commodity Platforms to enhance b-2-b information sharing, research, policy and advocacy for relevant laws and regulations

aBi will actively share information with its IPs and the public sector, and systematically collate, publish insights in value chain opportunities and bottlenecks from its evaluations

  • Number of additional functional long-term business relationships/contracts between beneficiary agribusinesses with primary producers/groups beneficiary
  • Growth of commodity volumes sourced by beneficiary agribusinesses from upstream producers
  • Growth of processed sales volumes sold to downstream clients by beneficiary agribusinesses
  • Level of satisfaction of platform members about the benefits they derive from the platform
Output 2.3

Beneficiary agribusinesses’ operational capacity and infrastructure improved

aBi will support ABs to finance capital expenditures (buildings, (cool) storage, machines), and for reducing waste, and improving waste disposal and energy efficiency
  • Growth in productive asset base of beneficiary agribusinesses
  • Reduction in energy consumption per unit of factory output of beneficiary businesses
  • Reduction in product waste as % of overall factory output of beneficiary agribusinesses
Result 3

Smallholder farmers and agribusiness access to serviceable financial services increased

  • USh growth in agribusiness savings and loans volumes of beneficiary farmers and agribusiness from formal and informal sources
  • Increase in number and value of loans of mid –long term tenure made by FIs to smallholders and agribusinesses
  • Growth in the number and volume of aBi loans that support green growth
Output 3.1

Appetite and financial capacity of FIs to lend to the agricultural sector increased

aBi provides LoCs and ALGs to FIs for on-lending to the agricultural sector and for default coverage for risk prone agricultural loans

aBi finances financial literacy in support of savings mobilisation, and graduation of VSLAs and other informal savings and credit arrangements into formal banking

aBi provides concessional loans to agribusinesses for green growth initiatives and stimulate FIs to increase financial green growth investments from its LoCs and ALGs

aBi provides loans and portable guarantees in support of aBi Development VCD IPs

  • Additional business finance leveraged as a result of aBi investments
  • USh growth of additional agribusiness loan volumes by beneficiary FIs by gender, age, location, business type and usage
  • Number of additional new savings and loan clients in beneficiary FIs by gender, age, location and business type
  • USh growth of additional savings and loans volumes by beneficiary VSLAs by gender, age and usage
  • Number of additional new savings and loan clients in informal lending arrangements (VSLAs)
  • Number, volume and purpose of green growth loans
  • Number, volume and purpose of VCD IP loans
Output 3.2

Physical and ICT infrastructure, governance and management of FIs improved

aBi finances branch expansion, branchless expansion mechanisms, management information systems, risk management mechanisms and skills enhancement of banking staff

  • Growth in capital base of beneficiary Tier 4 FIs
  • Reduction in Non-Performing Asset ratios by beneficiary FIs
  • Number of Tier 4 beneficiary FIs applying modern ICT banking and outreach tools
Output 3.3

Financial products of FIs more tailored to smallholders, small SMEs and SRIs

aBi finances the development of new innovative financial products and delivery mechanisms tailored to the agricultural sector, towards underserved interest groups and towards socially responsible investments.
  • Number of loans and loan volumes as % of total additional loans and loan volumes that is accessed by women and youth
  • Number of loans and loan volumes as % of total additional loans and loan volumes that is used for socially responsible investments (green growth, energy savings, waste management, safety)
  • Number and uptake of new financial products tailored to the agricultural sector
  • Number of FFIs that have special savings and loans products and arrangements for VSLAs
Result 4

aBi’s efficiency, effectiveness and sustainability enhanced

  • Growth of the aBi capital fund
  • Attainment of efficiency ratios
  • Growth of external funding commitments to cover the BP funding gap, and beyond 2022
Output 4.1

aBi's efficiency and effectiveness in service delivery maintained or enhanced

aBi applies modern, legal and efficient management tools and processes that maximise value for money

aBi has the right number and qualities of staff who operate in a clear management structure and are held accountable for their activities and results

  • Return on Investments (economic value generated from investments vs aBi programme costs and overall costs)
  • Cost per smallholder served
  • Annual programmatic fund absorption against budget
  • Ratio annual programmatic expenditure over total annual expenditure
  • Ratio eligible expenditure over grant disbursement
  • Leverage (additional financial resources mobilised) of aBi investments from grants and loans
  • Satisfaction score of partners about aBi
Output 4.2

Financial performance of aBi group maintained or improved

aBi applies prudent investment policies to balance risks and performance of its financial assets

aBi offers attractive investment opportunities to its development partners that outperform alternative fund destinations

  • Return on investment of aBi capital fund
  • Number and USh volume of contributors to aBi 2019-2023 BP