Recent developments in investment analysis and their relevancy in agricultural investment assessment are discussed. The Net Present Value model can be modified to incorporate the value of strategic management of an investment into the initial evaluation of that investment. Since these decisions can be modeled as call and put options, the mathematics of financial options has been applied to these investment decisions, and referred to as real options analysis. It is shown how contingent claims analysis can be used to value these real options. Contingent claims analysis uses a risk-free discount rate, since risk is incorporated into option valuation using computed risk-neutral probabilities obtained from a replicating portfolio correlated to the discounted income stream. Many net returns in agricultural activities are correlated with prices of underlying agricultural commodities, suggesting the potential use of contingent claims analysis.
Agro-Invest contribute to a viable and sustainable agricultural sector and socio-economic development by mobilizing finance, promoting investment and by providing marketing intelligence, land, infrastructure and support services.
Across all asset classes, we're committed to continuing to integrate ESG analysis in investment and operating activities. We believe that identifying and assessing material sustainability factors help us protect and enhance the value of the assets we invest in, own, and operate. Our integration strategy extends to our efforts to engage with investee companies to gather information, mitigate ESG-related challenges, and enhance ESG-related opportunities.
• To identify and strengthen competitive and relevant Agro-industries and sub-sectors.
• Facilitate investments by providing support services to investors.
• Facilitate optimal and effective use of state-owned properties and fixed assets.
• Contribute to the expansion of productive capacity of the sector by infrastructure expansion.
• Increase the attractiveness of the sector to younger, skilled, and trained entrepreneurs.