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Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa

Author

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  • Donato Morea

    (Faculty of Economics, Universitas Mercatorum, Rome, Italy)

  • Marino Balzarini

    (IRD Engineering S.r.l., Rome, Italy)

Abstract

A public private partnership can be an effective approach to deal the projects with modern agricultural development in Sub Saharan Africa. A former financial analysis of a development project, carried out by the authors, showed that public and private partners can effectively join in a mutually satisfactory venture capital. The same project is now complemented with a bankability study, considering lenders options, equity allocation, collaterals and likely applicable interest rates, available cash flow and sustainable debt service repayment to provide a through financing scenario for each partner's perspective assessing the relevant Debt Service and Loan Life Cover Ratios. Cash flow and interest rates fluctuation impacts are eventually investigated with a sensitivity analysis to prove the robustness of the proposed scenario.

Suggested Citation

  • Donato Morea & Marino Balzarini, 2019. "Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(5), pages 212-222.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:5:id:258-2018-agricecon
    DOI: 10.17221/258/2018-AGRICECON
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    References listed on IDEAS

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