The Annona Sustainable Investment Fund was set up in January 2009 for the purpose of investing in small

and medium-sized enterprises in Africa and Latin America by providing share capital. Objectives:
 10-15 sustainable investments in new and existing medium-sized companies
 an average ROI of 11% in EUR
 promoting the development of the private sector in a way that helps tackle poverty

Facts about Annona

 The shareholders of Annona are the Holding KIT B.V., the SPF Foundation (Dutch Railways Pension
Fund) and the SPOV Foundation (Public Transport Pension Fund)
 The Fund is a public limited company incorporated under Dutch law
 It owns EUR 8 million in share capital, spread over a start-up fund and a growth fund
 Active management by own Fund Manager
 Annona Sustainable Investment Fund B.V. has a 1-tier Board structure with a Non-Executive and an
Executive Director
 Independent assessment of business and investment plans by Investment Committee
 Pre-screening of investments and support to companies through the Sustainable Economic
Development department of the Dutch Royal Tropical Institute (KIT)
 Participations between EUR 300,000 – EUR 800,000
 Exit after 7–10 years, preferably through sale to existing shareholders or local parties

Selection criteria
Applications from companies are assessed based on the following criteria:
 Economic sustainability: is the company profitable in the long term?
o Market: is there a clearly-defined market with sufficient depth, significant growth potential
and good access? Does the market yield good margins? Is there a clear marketing strategy?
o Competitiveness: how strong is the company's competitive position? Does it deliver better
quality or a unique product at a fair price?
o Added value: does the company have a clear position in the value chain and does it provide
added value for other companies in the chain?
o Profitability: can the company be profitable within a few years? By when will the company be
profitable and will there be a positive cash flow?
o Risks: are the commercial and financial risks limited and manageable?
 Impact on poverty:
o Number of involved parties: how many people can realise a higher income thanks to the
company? Are these employees or suppliers?
o Individual impact: to what extent does the income per individual improve?
o Are there any exceptionally poor and vulnerable groups involved, such as women, children,
landless people or ethnic minorities?
o Empowerment: does it help the poor gain more power and control over their lives? Are the
skills and knowledge of these groups structurally improved through training and education,
as a result of which their chances in society are structurally improved? Can they acquire
control over assets, such as land, or become co-owners of the company?
 Impact on the environment:
o Does the company contribute to nature conservation such as the protection of biodiversity,
animal species, plants, fresh water sources and forests or to driving back pollution?
o Is there question of CO2 storage or emission-reducing measures?

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 o Do the company’s activities have a negative impact on the environment?
 Feasibility of the plan:
o Are there customers or traders who have shown real interest and are there long-term
contracts?
o Have small producers / suppliers been organised and are they reliable partners?
o Is cooperation possible with organisations which could assist in the training of personnel,
farmers and/or other suppliers?
o Is the local investment climate positive? Do local governments support the plan?
Is ownership recognised by the state?
o Are there sufficient natural resources for large-scale production?
o Does the company have knowledge of the required technologies and machines and have these
been tested and found suitable for the local conditions (easy to operate and repair)?
o Do the entrepreneurs have experience and training with regard to the product, region and
sector?
o Are there employees available who are already trained?
 Availability of capital and financial performances:
o Have all shareholders invested equity capital or are they prepared to do so?
o Are other companies from the chain (buyers or suppliers) prepared to co-invest?
o Are there other investors who are prepared to invest, such as banks, NGOs and investment
funds?
o Is the current debt rate limited and acceptable?
o Is Annona being offered sufficient ownership and authority?
 Scalability:
o Is an investment of EUR 300,000 to 800,000 necessary?
o Will the market and availability of raw materials and labour be sufficient to expand quickly?
o Is the business concept easily extendable to other regions and countries, or other product
groups?

The investment process

1. Quick Scan – plans can be put forward by ‘matchmakers’,
development organisations, but also directly by entrepreneurs,
or banks as well as other investment funds which need co-
investors.
3. Business Plan – after the internal assessment of the Concept
Note, it is decided whether or not to proceed to the business
plan phase. This phase is preceded by the signing of a
Memorandum of Understanding with the entrepreneur in
question, setting out the framework for the subsequent phases.
Part of this phase is an extensive due diligence process and
market study.
5. Expansion and assistance – after a few years, a new
business plan is developed and presented to the Investment
Committee.
2. Assessment and Concept Note – after the initial screening,
a Concept Note is drawn up for assessing the plans with
regard to the strength of the value chain.
4. Investment – in the first three years, investments are made
from the start-up / growth fund. Subsequently, the growth
fund enables to continue investing in companies with growth
potential for another five years. After a period of eight years,
the companies – which have been assigned both local and
external directors – should be financially sound.
6. Exit – when a company starts operating independently, the
Annona Fund sells its shares, preferably to local parties. The
intention is to first offer the shares to the other shareholders.

Contact details of Fund Manager

Drs. ing. W.J.M. Executive Director Annona Sustainable Investment Fund B.V.
Mauritskade 63 1092 AD Amsterdam Telephone: +31 (0)20 568 8280 E-mail: info@annona.nl