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← African Agricultural Technology Foundation

2023-12-31-accounts

CHARITY NUMBER: 1107507 COMPANY REGISTRATION NUMBER: 4645806

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION (A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

CONTENTS PAGE
Glossary of terms 1-3
Trustees’ annual report 4-43
Trustees' responsibilities report 44
Independent auditor's report 45-48
Consolidated statement of financial activities 49
Consolidated balance sheet 50
Consolidated statement of cashflows 51
Notes to the financial statements 52-79

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

GLOSSARY OF TERMS

AATF African Agricultural Technology Foundation African Agricultural Technology Foundation
ABNE African Biosafety Network of Expertise
AHyRA Alliance for Hybrid Rice in Africa
AfDB Africa Development Bank
AGRA Alliance for a Green Revolution in Africa
AI Artificial Intelligence
AIARC Association of International Agricultural Research
AMELIA AATF Monitoring, Evaluation, Learning and Improvement and Alignment
AUC African Union Commission
AUDA-NEPAD African Union Development Agency
BBSRC Biotechnology and Biological Sciences Research Council
BMGF Bill and Melinda Gates Foundation
BSN Bulked Siblings Nulls
Bt Bacillus Thuringiensis
BXW / BW Banana Xanthomonas Wilt / Bacterial Wilt
CAADP Comprehensive Africa Agriculture Development Programme
CANNALS Driving agroecological
transitions
in		 the humid tropics of Central and
Eastern Africa through traNsdisciplinary Agroecology Living LabS
CAMAP Cassava Mechanisation and Agro-processing Project
CBA Cost Benefit Analysis
CBOs Community-Based Organisation
CCPs Cross-cutting Priorities
CEOs Chief Executive Officers
CFT Confined Field Trial
CGA Cereal Growers Association
CIAT International Center for Tropical Agriculture
CIMMYT International Maize and Wheat Improvement Center
CIP International Potato Center
CIRAD Centre de cooperation Internationale en recherche
COMESA Common Markets for Eastern and Southern Africa
CORAF West and Central African Council for Agricultural Research and Development
COSTECH Commission for Science and Technology
COVID Coronavirus Disease
CRI Crops Research Institute
CSA Climate Smart Agriculture
CSIR-SARI The Council for Scientific and Industrial Research-Savanna Agricultural
Research Institute
CSIRO Commonwealth Scientific and Industrial Research Organization
DDPSC Donald Danforth Plant Science Center
DFID UK Department for International Development
DRC Democratic Republic of Congo
DTMA Drought Tolerant Maize for Africa
DTMASS Drought Tolerant Maize for Africa Seed Scaling
DUS Distinctness, Uniformity and Stability
EAC East African Community
ECOBasic ECOBasic Seed Company Ltd
ECOWAS Economic Community of West Africans
EFSE Early Food Safety Evaluation

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

GLOSSARY OF TERMS (Cont…)

EGS Early Generation Seed EIAR Ethiopian Institute of Agricultural Research EU European Union FARA Forum for Agricultural Research in Africa FAW Fall Army Worm FOCAC Forum for Chinese Africa Collaboration FRC Financial Reporting Council FRS 102 Financial Reporting Standards 102 GATE Ghana Agricultural Technology Evaluation GBP Great British Pound GM/ GMO Genetically Modified / Genetically Modified Organisms HEAL Hybrids East Africa Ltd HTC Hydrothermal Carbonisation HQCF High Quality Cassava Flavour IAR Institute for Agricultural Research ICOSEED Integrated Community Organization for Sustainable Empowerment and Education for Development IDA Integrity, Dedication and Accessibiity IFPRI International Food Policy Research Institute IFRS International Financial Reporting Standards IIAM Instituto de InvestigaçãoAgrária de Moçambique IITA The International Institute of Tropical Agriculture ILRI International Livestock Research Institute IP Intellectual Property IPM Integrated Pest Management IRRI International Rice Research Institute IRAD Institute of Agricultural Research for Development KALRO Kenya Agricultural and Livestock Research Organisation KES Kenya Shillings KEPHIS Kenya Plant Health Inspectorate Service KEPSA Kenya Private Sector Alliance LLP Limited Liability Partnership LPB Legume Pod Borer LUSIP Lower Usuthu Smallholder Irrigation Project MCMV Maize Chlorotic Mottle Virus MEAL Monitoring, Evaluation, Accountability Learning MISS Market Information Support System MLN Maize Leaf Lethal Necrosis MNWAP Mkondvo-Ngwavuma Water Augmentation Project NaCRRI National Crops Resources Research Institute NARO National Agricultural Research Organisation NARS National Agricultural Research Systems NaSARRI National Semi-Arid Resources Research Institute NASC National Agricultural Seeds Council NASECO Nalweyo Seed Company Ltd NBA National Biosafety Authority NBMA National Biosafety Management Agency NCE Non-Cost Extension

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

GLOSSARY OF TERMS (Cont…)

NCRI National Cereal Research Institute
NEPAD New Partnership for Africa’s Development
NERICA New Rice for Africa
NEWEST Nitrogen-Use Efficient, Water-Use Efficient and Salt Tolerant
NGO Non-Governmental Organisation
NI National Insurance
NPTs National Performance Trial
NPTC National Performance Trial Committee
NSA Nutrition Sensitive Agriculture
NUE Nitrogen Use Efficient
NVRC National Variety Release Committee
OFAB Open Forum on Agricultural Biotechnology in Africa
OECD Organisation for Economic Co-operation and Development
OMAs OFAB Media Awards
PASTTA Partnerships for Seed Technology Transfer in Africa
PBR Pod-borer Resistant
PIDACC Program for Integrated Development and Adaptation to Climate Change
PLCAs Product Launch Collaboration Agreements
PPPs Public Private Partnerships
PVP Plant Variety Protection
QBS Qualibasic Seed
RECs Regional Economic Communities
RDSP Research Discontinuation and Stewardship Plan
RR Round-up Ready
RSA Republic of South Africa
SARI Savannah Agricultural Research Institute
SFSA Syngenta Foundation for Sustainable Agriculture
SGCF Secondary Grade Cassava Flavour
SMEs Small and Medium Enterprises
SNV Stichting Nederlandse Vrijwilligers
SSA Sub-Saharan Africa
SOPs Standard Operating Procedures
SORP Statement of Recommended Practice
SPP Species Plural
STI Science Technology and Innovation
STMA Stress Tolerant Maize for Africa
TAAT Technologies for African Agricultural Transformation
TARI Tanzania Agricultural Research Institute
TMC TAAT Maize Compact
TUG The Technology user Guide
UNECA United Nations Economic Commission for Africa
US United States
USDA-FAS US Department of Agriculture-Foreign Agricultural Service
USAID United States Agency for International Development
VAT Value Added Tax
VCU Value for Cultivation and Use
WACCI West Africa Centre for Crop Improvement
WEMA Water Efficient Maize for Africa
WP Working Package
YASA Youth in Agribusiness and Smart Agriculture
ZARI Zambian Agricultural Research Institute
ZIM Zimbabwe

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER 1107507

COMPANY REGISTRATION NUMBER 4645806

REGISTERED OFFICE AND OPERATIONAL ADDRESS

African Agricultural Technology Foundation C/o Arnold and Porter (UK) LLP, Level 30, Tower 42, 25 Old Broad Street, EC2N 1HQ London, United Kingdom

REGISTERED KENYA OFFICE ADDRESS:

ILRI Offices Old Naivasha Road P.O. Box 30709 – 00100 Nairobi

SUBSIDIARIES’ OFFICE ADDRESSES

Agridrive Nigeria Limited Country of Incorporation: Nigeria Company Registration Number: RC1474799 Registered Office Address: No 3, Idris Ibrahim Street, Jabi, Abuja, FCT Head Office Address: No 1 J Allen Avenue, Bank Road, J-Allen Bus Stop, Dugbe, Ibadan, Oyo State

Qualibasic Seed Company Limited Country of Incorporation: Kenya Company Registration Number: PVT/2016/031638 Eastgate Road, off Mombasa Road P.O. Box 28897 - 00100 Nairobi, Kenya Ecobasic Seed Company Limited Country of Incorporation: Nigeria Company Registration Number: RC 1829307 Suite 1, 1st floor, NNDC Mall, Muhammed Buhari Way, City Center, Kaduna, Nigeria.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

LEGAL AND ADMINISTRATIVE INFORMATION (CONTINUED)

AUDITOR

Crowe U.K. LLP Rounds Green Road,Oldbury West Midlands B69 2DG, UK

SOLICITORS

BDO Seidman, LLP Accountants and Consultants 12505 Park Potomac Ave, Suite 700 Potomac, MD 20854, USA

Sandalwood Solicitors Suite B20 Shakir Plaza No.3, Micheka Street Off Ahmadu Bello Way Area 11, Garki Abuja-CFT, Nigeria

Arnold & Porter LLP Tower 42 25 Old Broad Street London, EC2N 1HQ United Kingdom.

BANKERS

NCBA Kenya PLC, Commercial Bank Building, Standard/Wabera Streets, PO Box 30437 - 00100 Nairobi, Kenya

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

BOARD OF TRUSTEES

BOARD OF TRUSTEES
Prof. Aggrey Ambali - Chair
Director - Industrialization, Science, Technology, and
Innovation Hub (NSTIH),
AUDA-NEPAD Agency
Midrand, South Africa		 Dr. Dahlia Garwe - Vice Chair
Harare, Zimbabwe
Tobacco Research Board
Harare, Zimbabwe
Prof. Margaret Gill - Member
Chair Scottish Science Government Advisory Council
Chair BBSRC Sustainable Agriculture and
Food Strategy Panel		 Mr. George Sarpong - Member
Managing Partner
G. A. Sarpong & Co.
Accra, Ghana
Shey Romanus Tata - Member
International Development Consultant
Silver Spring, USA		 Sylvia Horemans - Member
Chief Executive Officer
Kamano Seed
Lusaka, Zambia
Prof. Bernard Slippers - Member
Professor, Department of Biochemistry,
Genetics, and Microbiology
University of Pretoria
Pretoria, South Africa		 H.E. Prof. Muhammadou. M. O. Kah - Member
Ambassador & Permanent Representative of the Gambia
to the UN Office in Geneva, World Trade Organization (WTO)
and other offices in Geneva
Dr. Canisius Kanangire - Member
Executive Director
African Agricultural Technology Foundation (AATF)
Nairobi,Kenya		 Prof. Garba Hamidu Sharubutu - Member & Government
Representative
Nigeria Government Representative
Abuja, Nigeria
Dr. Bonface Kang'entu - Member & Government
Representative(Appointed on 22 February 2023)
Kenya Government Representative
Nairobi, Kenya

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023 TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

EXECUTIVE LEADERSHIP TEAM (ELT)

Canisius Kanangire Executive Director and Trustee Emmanuel Okogbenin Director Programme Development & Commercialisation Alhaji Tejan-Cole Director of Legal Affairs & Board Secretary Sofia Tesfazion Director of Resource Mobilisation Peter Mugambi Director of Corporate Services

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

The African Agricultural Technology Foundation (AATF) is a company limited by guarantee, not having a share capital and a registered charity governed by a memorandum and articles of association.

Article 8 of the Articles of Association deals with appointment of trustees. The trustees may appoint a person to be a trustee, either to fill a vacancy or as an additional trustee, for terms of a maximum of two terms of three years each (article 8.1 read with article 8.2). Article 8.2 shall not apply to the executive director or to the representative for the time being of the host country of the charity. The terms of service of the ex-officio trustee being the representative of the host country of the charity shall be determined by its government. The name of host country’s (Kenya) ex-officio trustee is Dr. Bonface Kang’entu Kaberia.

In accordance with the AATF Articles of Association and Board Decisions, the board shall consist of not less than seven nor more than 12 trustees. Up to 10 trustees-at-large shall be drawn from academia, public sector organisations, international and local private sector companies, donor agencies, major non-governmental organisations, and the Consultative Group on International Agricultural Research community; the representative of the host country; and the executive director (ex officio).

The nominating committee, which is a standing committee advisory to the board, advises the board on the nomination of new trustees. The nominating committee maintains a data bank of potential candidates for future trusteeship and considers them several years in advance to maintain a balanced board in terms of the list of qualifications. The list of qualifications are geographical distribution, field of expertise, gender, availability, language and suitability for board leadership and committee assignments.

The decision of the full board on the nominating committee advice is normally reached by consensus. In the absence of a consensus at a meeting of the board, the board chairperson may, and at the request of any two trustees not including the executive director or the representative of the host country, shall put the proposal to a vote.

Trustees are elected for a term of no more than three years as determined by the board in advance of the election, with appointments staggered to ensure continuity. Trustees are eligible for re-election to a second term, also of three years, but shall not serve more than two successive terms. The host country’s government shall select its representative trustee and determine their term of office.

At the time an individual is invited to be a candidate for trusteeship, he or she is provided with information on board responsibilities and a sample schedule of meetings. In most cases the trustee nominee will be invited to attend a board meeting as an observer prior to election. Following election to the board, the new trustee receives a letter from the board chairperson welcoming him or her as well as background information from the board secretary, including the board manual with all annexes, minutes of the last two board meetings and the most recent AATF annual report. At the first board meeting, the new trustee attends, either as a trustee elect or observer, he or she also has an opportunity for briefings from the board chairperson, senior management, and programme staff. The senior management is responsible for arranging the orientation briefings.

Members of the board of trustees are required to be experts in relevant fields such as agricultural research or extension, agribusiness, marketing, biotechnology, intellectual property law, and biosafety. New trustees are inducted in the governing documents and policies of AATF. The board of trustees is occasionally trained on emerging governance and policy management issues. Whenever need arises, the trustees are also trained in resource mobilisation, and business negotiation skills among others. The Foundation is in the process of incorporating a trustees training policy into the existing Board of Trustees Manual to streamline the procedures and processes of training.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

The general business of the charity is managed by the trustees who are charged with exercising all its powers. The trustees are specifically charged with expending the funds of the charity in such manner as they consider most beneficial for the achievement of the objectives, to invest in the name of the charity such part of the funds as they may deem fit, to direct the sale of any such investments, to expend the proceeds of any such sale in furtherance of the objects of the charity, and to enter into contracts on behalf of the charity. The trustees delegate the day-to-day management of the charity to the executive director.

The relationship between the charity and collaborative institutions is that of independent entities. Nothing in the charity’s collaborative agreements shall be construed as constituting any collaborative institution to be the agent of another or shall be construed to constitute a legal partnership or joint venture of any kind between the collaborative institutions.

Compliance with charity governance code

The trust is committed to good governance, has followed charity governance code and code's principles and recommendations. We have reviewed and considered code's recommendations and we have implemented measures to ensure compliance and uphold highest standards of governance.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES

Our Vision, Objectives, Aims, and Activities

Introduction

The charity’s vision is a prosperous, resilient, food and nutrition-secure Africa. The charity’s mandate is to transform the livelihoods of farmers in Africa through innovative agricultural technologies. To achieve its mission, AATF work programme in the new strategic period will build on gains accomplished over the last two decades and will be anchored on three strategic objectives. These specific objectives are:

Cross-cutting priorities

While implementing its new strategy, AATF want to ensure that its interventions are sensitive to climate change exposure, nutrition challenges and gender divides, as well as data, information, and education gaps, among its beneficiaries. AATF already contributes to these cross-cutting priority areas and will adopt a more focused approach in executing them going forward.

The charity achieves its specific objectives above by implementing a series of cross-cutting priorities (CCPs) that underpin its new strategic framework. These are:

Delivery model

To achieve its strategic objectives and maximise on impact, AATF leverages on a delivery model centred on revamped strategic partnerships and a country-centric approach. The aim is to consolidate its current partnerships while seeking new ones, especially in the areas of genome editing, product commercialisation and scaling. To enhance service delivery at the national level, AATF will set up internal systems to help deepen its country presence. The organisation will take a phased approach to implementation, starting with its key project countries. The delivery model will be supported by four critical enablers, namely:

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS- YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES

Specifically, under the new strategy AATF will:

Guiding Principles

Core Values

As pioneers in brokering innovative agricultural technologies for farmers, and in particular resource-poor smallholder farmers in SSA, AATF staff uphold the following core values: Integrity, Dedication and Accessibility (IDA).

Integrity: AATF strives to make decisions and actions that adhere to strong ethics across its operations and embodying high moral standards including sound judgement, honesty, dependability, loyalty and inclusivity for all.

Dedication: AATF strives to make decisions and actions that adhere to strong ethics across its operations and embodying high moral standards including sound judgement, honesty, dependability, loyalty and inclusivity for all.

Accessibilty: AATF remains inclusive, open to collaboration and experience sharing across all activities, challenging current restrictions to deliver value to end beneficiaries. This also entails availing itself for discussions, consultations and sharing of information that will support technology acquisition and transfer in SSA.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Value proposition

AATF’s value proposition is anchored on six inter-connected pillars that ensure it efficiently and effectively achieves its mission. These are:

The significant activities that contribute to the achievement of the above objectives are as follows:

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

DEVELOPING MARUCA-RESISTANT COWPEA VARIETIES FOR USE BY SMALLHOLDER FARMERS

The Problem

Cowpea is an important food and nutrition security crop for more than 200 million people in SSA. Its production and productivity are constrained by several biotic and abiotic factors. Prominently among the biotic factors, is the Maruca vitrata commonly known as Legume Pod Borer (LPB) which can cause yield loss of about 80 per cent of the production depending on the level of infestation and prevailing climatic conditions. To control the insect pest, farmers used to spray pesticides up to 6 -10 times within a cropping season- multiple applications of pesticides are not only expensive but also detrimental to the farmers’ health and environment.

To address this problem, scientists developed a genetically modified (GM)/transgenic cowpea variety that can confer resistance through the expression of the Cry1Ab protein from Bacillus thuringiensis (Bt) against lepidopteran insects but more specific to the LPB. This is a laudable achievement because there is no source of resistance in the cowpea gene pool. Development of varieties which confer resistance to LPB through conventional breeding has not been successful, hence the heavy reliance on chemical insecticides which are highly detrimental to the environment and health of the farmers. The PBR cowpea is therefore, addressing the problem of the LPB (M. vitrata), a lepidopteran pest that inflicts severe damage to cowpea.

Objective

The project aims at contributing to food security and improving the livelihoods of smallholder farmers in SSA by developing and deploying improved, high-yielding farmer-preferred cowpea varieties that are resistant to the insect pest Maruca vitrata, commonly known as LPB.

AATF Intervention

The PBR Cowpea Project is a public-private partnership (PPP) which started in 2009 working towards development, deregulation and commercialisation of high yielding cowpea varieties that are resistant to Maruca vitrata, through a combination of conventional breeding and genetic engineering of the crop to improve its productivity and utilisation.

AATF works in partnership with international institutions such as Commonwealth Scientific and Industrial Research Organization (CSIRO) Australia, Donald Danforth Plant Science Center (DDPSC) Missouri, Michigan State University USA, and several National Agricultural Research Systems (NARS) in Nigeria, Ghana, and Burkina Faso. AATF obtained the technology on a royalty-free basis from Bayer. AATF contributes its expertise in PPP, intellectual property and project management, product stewardship, and regulatory affairs. CSIRO-Australia provided the gene construct and assisted with the genetic transformation of IT86D10-10 cowpea variety while DDPSC provided the regulatory science towards dossier compilation for submission in the project countries.

Summary of Project Achievements

The Pod-Borer Resistant (PBR) cowpea that has been developed to control Marucca insect pest infestation in cowpea continues to receive government approvals with Burkina Faso granting partial environmental release approval of 709 event (Cry1Ab gene) as final results are awaited. Burkina Faso will be the third country to grant the PBR Cowpea approval to proceed beyond research. In Nigeria, a permit for the environmental release of PBR cowpea event 245F was granted. In Ghana, the PBR cowpea was recommended for commercial release by the National Variety Release Committee and a final approval is expected from the National Seed Council in 2024.

To enhance durability in PBR cowpea, significant progress was made in several product development activities during 2023. The Cry2Ab gene was deregulated, a second generation of PBR cowpea with durable resistance to pod borers (PBR CowpeaXTRA) was developed, and creating PBR Cowpea with Cry1Ab. Trials (MLTs) in Nigeria, five varieties in NPTs in Ghana, and two varieties in NPTs in Burkina Faso.

Compliance monitoring for PBR cowpea farmers was conducted by field extension workers under the coordination of the National Agricultural Extension Research and Liaison Service (NAERLS) and Agricultural Development Programmes (ADPs) of the Ministries of Agriculture of various states of Nigeria where PBR cowpea was cultivated by farmers. The purpose of the farmer monitoring was to assess their compliance to stewardship requirements as contained in the technology use guide (TUG) and to track farmer feedback on the relevance of the PBR technology at farm level.

Capacity strengthening for PBR cowpea seed production in Nigeria was carried out for 44 technical staff from licensed seed companies in Kaduna State. The training covered cowpea seed production techniques and

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

A stewardship appraisal for PBR cowpea was conducted three years after the release of the product in Nigeria. Supported by the Australian Centre for International Agricultural Research Small Research Activity (ACIAR-SRA), the study aimed to evaluate the performance of PBR cowpea in four representative agroecological zones, assessing environmental and health impacts, genetic purity of seeds, acceptance of the variety, and adoption of recommended cultivation practices. Results indicated genetically pure cowpea in farmers' fields without cross-contamination, lower pesticide residue on PBR-cowpea fields compared to nonPBR cowpea fields (below European Union recommended rates), and higher beneficial microbial activity in PBR cowpea fields.

Data collection, mapping of farmer beneficiaries and obtaining feedback from end users on PBR cowpea continued through the AATF digital application SAMAWATI that is undergoing further improvements.

Progress was made in enhancing seed availability and meeting demand for PBR Cowpea in Nigeria with a focus on how to determine and optimize planting windows including the integration of historical weather data and analytics. As a result, the PBR seed production more than tripled compared to 2022 with indications that Following the environmental release of the PBR cowpea in Ghana, the project team initiated large scale trials that are required to guide on the performance of PBR cowpea for its commercial release to farmers. Five onstation, and 100 farmer-managed trials were established across five regions of the country. To jump-start commercialisation in anticipation of the commercial release of the product in the country, 12 acres have been planted for seed multiplication.

In Nigeria the PBR Cowpea Project held two training sessions in February in Jigawa State, and June in Kano State for seed partners and out-growers on quality seed production and stewardship.

Expected Impact

Key Challenges

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

INITIATING COMMERCIALISATION OF TRANSGENIC DROUGHT-TOLERANT AND INSECT-PROTECTED MAIZE VARIETIES TO ENHANCE FOOD SECURITY IN SSA THROUGH THE TELA PROJECT

The Problem

Africa is a drought-prone continent, making farming risky for millions of smallholder farmers who rely on rainfall to water their crops. Maize is the most widely grown staple crop in Africa – more than 300 million people in Africa depend on it as their primary food source. Maize is severely affected by frequent drought and irregular rainfall, which lead to crop failure, hunger, and poverty. Climate change is worsening the situation. Like drought, insect pests present a challenge for smallholder maize farmers in Africa who have limited resources to manage them effectively. During drought, maize is particularly susceptible to insect pests, and farmers can experience complete loss. The TELA Maize Project is, therefore, addressing the problem of drought and destructive insects, including stemborers and the Fall Armyworm (FAW).

Stemborers are known to reduce maize production in several countries in Africa. For example, in Kenya, stemborers reduce maize production by an average of 13 per cent or 400,000 tons of maize, equivalent to the normal yearly amount imported into the country. This damage is valued at more than USD 90 million. The FAW is a new devastating, transboundary maize pest that was first observed in Africa in 2016. If solutions are not put in place quickly, projections estimate that it could destroy up to 20 million metric tons of maize in Africa each year. This is enough to feed 100 million people. Big maize producers such as Nigeria and Tanzania, could lose half or more of their harvests to FAW, which can decimate an entire field in just a few days.

Objective

Successful commercialisation of TELA® maize varieties through local seed companies for use by farmers to mitigate effects of climate change especially moderate drought stress and losses to stem borers (Spotted stem borer [Chilo partellus], African stem borer [Busseola fusca], and Pink stem borer [Sesamia calamistis]) and Fall Armyworm (Spodoptera frugiperda) insect pests.

AATF Interventions

The TELA Maize Project is a PPP that started in April 2018, working towards traits deregulation, and initiating the commercialisation of transgenic drought-tolerant and insect-protected maize varieties to enhance food security in SSA. The project builds on progress made and lessons learned from a decade of excellent breeding work under the Water Efficient Maize for Africa (WEMA) Project. Through WEMA, 125 conventional droughttolerant maize hybrids (DroughtTEGO®) have been released to farmers since October 2013. In addition, five insects resistant (Bt) TELA® maize hybrids have been released and commercialised to smallholder farmers in South Africa since 2016.

AATF works in this partnership with the internationally funded non-profit International Maize and Wheat Improvement Center (CIMMYT), the private agricultural company Bayer, and seven NARS in Ethiopia, Kenya, Mozambique, Nigeria, South Africa, Tanzania, and Uganda. Due to the lack of a conducive regulatory environment for commercialisation of GM crops in Tanzania and Uganda, activities have been temporarily paused since April 2020. AATF contributes its leadership, and unique experience in PPP, intellectual property, project, technology stewardship, and regulatory affairs management expertise. CIMMYT provided high-yielding maize varieties that are adapted to African conditions and expertise in conventional breeding and testing for drought tolerance and insect protection.

Bayer provided several proprietary germplasms, advanced breeding tools and expertise, drought-tolerance and insect protection transgenes, and the biosafety regulatory package. The varieties developed through the project will be distributed to African seed companies through AATF without royalty payment (technology fees) and made available to smallholder farmers as part of their seed business. The NARS, farmers’ groups, and seed companies participating in the project will contribute their germplasm, expertise in field testing, seed multiplication, and distribution. The project also involves local institutions, both public and private, and in the process expands their capacity and experience in agricultural biotechnology and biosafety.

Summary of Achievements

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Expected Impact

Key Challenge

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

DEVELOPING HYBRID RICE FOR USE BY SMALLHOLDER FARMERS IN SUB-SAHARA AFRICA

Objective

The Hybrid Rice Project aims to improve food security and rural livelihoods among African small-scale rice producers, by developing hybrid rice, exploring its significant yield advantage to create sustainable hybrid rice agrobusinesses to increase rice farming in East, West and Southern Africa. Implemented over a 15-year period, the project expects to enable African researchers and seeds producers to reach 500,000 rice farmers with hybrid rice that delivers a yield advantage of at least one ton per hectare over the most competitive inbred varieties.

The Problem

Rice (Oryza spp) is an important staple food and a commodity of strategic significance across much of Africa. Driven by changing food preferences in the urban and rural areas and compounded by high population growth rates and rapid urbanisation, rice consumption in SSA has increased by 5.6 per cent per annum over the years, less than double the rate of population growth. However, the area under rice production in SSA has stagnated at about eight million hectares producing about 15.5 million tonnes per year against an annual consumption of 27 million tonnes. These production and consumption trends imply a production deficit of about 11.5 million tonnes per year valued at US$ 4 billion that is imported annually.

Thus, the rice production deficit presents a great development challenge to governments and development agencies in SSA. The slow growth in domestic rice production has been attributed mostly to the very low yields being achieved by rice farmers in SSA. In addition, poor agronomic practices, insufficient private sector investment in rice seed production, non-competitiveness of locally produced rice, low capacity in technologies that can improve productivity such as hybrid technology, high production costs and poor quality are among the challenges that makes it difficult for SSA to meet its the rice need. To meet the increasing demand for rice consumption, there is the need to deploy technologies like hybrids that can enhance yield per hectare to boost local production as well as help in building viable agri-businesses along the whole crop value chain.

AATF Intervention

AATF is working with public and private partners to develop indigenously bred rice hybrids that are well adapted to the growing conditions in Africa and with significant yield advantage. The partnership is developing two-line rice hybrids and parental lines alongside the development of an information technology tool with interpolated weather surfaces to predict temperature regimes required for the management of two-line hybrid rice production risk. The project is being managed by AATF in a way that ensures that technology partners focus on their technical work and that the outputs of the project contribute to global public goods.

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REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

AATF is also providing a connection to the African seed sector researchers and seed firms. AATF provides an in-depth understanding of African seed companies and the NARS and links between the partners - Hybrids East Africa Ltd (HEAL), and the researchers and seed firms that the project has trained. As part of the efforts towards using the hybrid rice technology to increase production in SSA and enhance business linkages in the value chain, AATF has brought together private companies and public institutions, such as HEAL, Advanta, Afritec, Bayer, International Rice Research Institute (IRRI), Africa Rice Centre (AfricaRice), national rice programs and other SMEs to achieve greater impact and create synergy for promoting, marketing and commercialisation of hybrid rice technology for the benefit of African farmers. This initiative is a PPP known as the Alliance for Hybrid Rice in Africa (AHyRA).

Achievements

The Hybrid Rice Project partnered with AfricaRice in the RiceFinder project through AHyRA to increase rice production and productivity in West Africa. This partnership entails identification of high-yielding and market-preferred hybrid rice varieties.

The Hybrid Rice Project continued its efforts in market priming and promoting the adoption of rice hybrids. In 2023, the project through AHyRA, organized farmer-managed on-farm demonstrations to showcase the yield and economic advantages of hybrid rice compared to the best commercial inbred varieties in Kenya. This initiative led to over 1,500 farmers purchasing approximately 12.5 metric tons of seed, valued at over KES 12.5 million (approximately US$85,000) in 2023. As a result of the momentum generated, two private seed companies have expressed interest in producing pre-commercial seeds to initiate the commercialization and marketing of licensed hybrid rice.

Rice evaluation trials were carried out under the AATF/AfricaRice RiceFinder project that aims to increase rice yield of small-scale producers and establish products and technologies for smallholder farmers and the private sector. The trials in the project were planned both as on-station and on-farm. Through AHyRA partnership, 9 hybrids (AH18003, AH18004, Arize 6444 Gold, SWARNA 2, PAC 801, ADV 8100, PAC 807+, ADV 8577, Pwan Gold Plus) were sent to AfricaRice in April 2023 for evaluation together with other 16 varieties. During the year, 24 varieties and one local check were planted in the on-station trials in Cote d’Ivoire at Mbe and Centre National de Recherche Agronomique de Côte d’Ivoire (CNRA) Man station; in Nigeria at Ibadan Station and National Cereals Research Institute (NCRI) Wuya facility; and in Senegal at St Louis stattion. Additional 25 varieties were planted in on-farm trials in Nigeria where farmers identified the most suitable varities for the local conditions of their own farm (Tricot design).

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In Kenya, the project partnered with Cereal Growers Association (CGA) and CardPerP to identify demo farmers and establish on-farm demos in Central and Western Kenya for hybrid rice. A training on demo establishment, management protocols, data collection and reporting was carried out for five key technical staff from the two organisations - two officers (agronomist and water engineer) from Cardperp, two agribusiness coordinators, and a project manager from CGA. A special training for farmers on good agronomic practices for nursery establishment, transplanting and demo management was also carried out.

The project also trained 19 demo supervisors and coordinators from CGA during season two of onfarm demos in Western Kenya on demo establishment, data collection, and reporting. In addition, two officers (agronomist and water engineer) from Cardperp, two agribusiness coordinators, and a project manager from CGA were trained on a step-by-step protocol on on-farm demos establishment and management, and data collection.

The project entered into a collaboration agreement with Africa Rice Center (AfricaRice) to implement the RiceFinder project being supported by BMGF. The project aims to address the need to increase rice production and productivity in West Africa through the identification of high-yielding, and marketpreferred rice hybrid varieties.

Expected Impact

Challenge

Project funding ended in April 2022. However, discussions around future funding were initiated with the project donor.

Key Project Beneficiaries

The key beneficiaries are seed companies, scientists, rice farmers (male and female), millers and research institutes in Africa.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

EU HORIZON 2020 BIO4AFRICA PROJECT - SUPPORTING DEPLOYMENT OF SIMPLE, SMALL-SCALE, AND ROBUST BIOBASED TECHNOLOGIES

Background and the Problem

Africa’s population is anticipated to reach 2 billion people by 2050 amidst unprecedented demographic, socioeconomic, environmental, climatic and health transitions. Meanwhile, poverty and food security have increased with rising population. Under this scenario, boosting incomes and food security becomes imperative, with bioeconomy offering new opportunities to boost revenue in rural Africa.

EU Horizon 2020 BIO4Africa “Diversifying revenue in rural Africa through circular, sustainable and replicable bio-based solutions and business models” is a consortium project with the French Agricultural Research Centre for International Development (CIRAD) as the lead and AATF a subgrantee. It involves 25 partners and four countries (Uganda, Ghana, Cote D’ Ivoire, and Senegal). The purpose of the project is to transfer simple, small-scale, and robust bio-based technologies adapted to local needs and contexts; empowering farmers and rural communities to produce a variety of bio-based products and energy; and improving the environmental, economic, and social performance of their forage agri-food systems. ATTF is involved in the needs analysis, technology screening, co-definition of technologies to be transferred with local farmers and communities and business model development.

Objective

The objective of the project is to support the deployment of bioeconomy in rural Africa via the development of bio-based solutions and value chains with a circular approach to drive the cascading use of local resources and diversify the income of farmers. The focus is on transferring simple, small-scale, and robust bio-based technologies adapted to local biomass, needs and contexts (green biorefinery, pyrolysis, hydrothermal carbonisation, briquetting, pelletising, bio-composites and bioplastics production). In doing so, the project aims at empowering farmers to sustainably produce a variety of higher value bio-based products and energy (animal feed, fertilizer, pollutant absorbents, construction materials, packaging, solid fuel for cooking and catalysts for biogas production), significantly improving the environmental, economic, and social performance of their forage agri-food systems.

AATF Interventions

AATF is leading Work Package (WP) 1 and 7 and acts as the support partner to the other seven work packages. Within WP1, AATF implemented Task 1.4, which focuses on co-defining the technologies that will be adapted and transferred to farmers and other rural stakeholders. This involved validation of the technologies and conducting cost benefit analysis as well as establishing a business case. AATF delivered a report on specifications and guidelines on how the technologies could best be developed and adapted to meet the identified needs, contexts, and opportunities of each country. Under WP7, AATF will be taking lead in task 7.4 that focusses on policy outreach and recommendations for deploying bioeconomy in rural Africa. AATF will develop policy maker evidence-based recommendations for deployment of bio-based solutions.

Summary of Achievements

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TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Analysis of the Policy and Regulatory Environment on the Bio4Africa Project Countries

The policy and regulatory environment are critical in driving supportive processes for the development of the Bioeconomy in the target countries. Policy analysis is a critical step in the process of facilitating policy reforms because it helps to understand the status and identify policy related gaps. This exercise will pave way for engagement of policy decision makers and other relevant stakeholders.

The policy analysis approach

The policy assessment was conducted through a content analysis approach which had three components: (a) Policy context which is concerned with understanding the context within which the policy was established and the motivation therein. (b) The policy text, which looks at policy objectives and the instruments that the policy intends to use to ensure implementation and operationalization; (c) the policy consequence, that identifies the impact of the policy, in terms of actions that were catalysed by the policy.

Policy documents Analyzed.

The exercise identified several policy instruments across the four target countries and regional strategies relevant for the Bioeconomy. Notably, Uganda and Senegal have specific policies that are directly addressing the Bioeconomy. Uganda has a Draft National Bioeconomy Strategy (2020), which is yet to be finalized and adopted. Consequently, other policy documents were analyzed: Biomass Energy Strategy (2007), Renewable Energy Policy (2007) and Vision 2040. Senegal adopted the National Biofuel policy in 2012, which regulated the Biofuel sector. In the absence of specific Bioeconomy policy, Ghana regulates matters relevant for the Bioeconomy using the Renewable energy Act (Act 832) (2013), Strategic National Energy Plan, National Energy Policy (2009) and the National Energy Strategy (2010). At regional level, the East African Community adopted a Bioeconomy Strategy in 2020 while the ECOWAS secretariat adopted a Regional Biofuel strategy in 2011.

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TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Policy analysis results

The analysis identified the drivers of bioeconomy policy in the region that seemed to converge around optimally utilizing biological resources, their products, and services for sustainable national development; enhancing the development of the Bioeconomy as a tool for sustainable development as well as reversing market failures and transforming several economic sectors and translate biosciences’ research and innovations into industrial and commercial enterprises, with greater participation of the private sector. In terms of policy consequence, the Senegal case presents a perfect example of the positive effect of having a functional enabling environment. After the establishment of the National Biofuel strategy, Senegal has emerged as one of the most advanced countries in West Africa in the adoption of renewable energy. Recently, Senegal launched 158 MW Taiba N’diaye wind farm and is also currently implementing BioStar project aimed to boost the availability of biofuels for SMEs in the region. At regional level, the establishment of the ECOWAS Biofuel strategy triggered member states to establish National Biofuel strategies. Some gaps were identified especially pointing to the need to finalize and adopt the Biofuel Strategy for Uganda. Further, effective implementation of the National Biofuel strategy in Senegal needs to be boosted through the development of the regulations and land tenure reforms to support the production of biofuel feed stock.

Expected Impact

The project is expected to:

Key Challenges and Mitigation Measures

Limited budgetary allocation for physical mentoring of the businesses undergoing business acceleration training, virtual support to be embraced.

Looking forward

The project will continue to offer support covering mentoring, coaching, and linkages to finance to the business enterprises with the focus of building their capacity for decision making and improved management.

Mitigation measure: The project focuses on small-scale technologies and circular business models that do not create competition of resources.

Mitigation measure: The project will conduct thorough value chain and market analyses aimed at producing circular business models considering the marketability of end-products and the needs of farmers and rural communities.

Mitigation measure: The project aspires to contribute via the development of funding guides, detailing different financing options as well as the development of several policy briefs along with recommendations addressing key policy aspects for the adoption of the small-scale bio-based technologies.

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TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

TECHNOLOGIES FOR AFRICAN AGRICULTURAL TRANSFORMATION (TAAT) – MAIZE COMPACT

The Problem

Maize is a leading staple crop and an essential source of calories and food security to over 300 million people in SSA. However, its production is impacted by a myriad of challenges, including erratic rainfall patterns due to climate change, pests, diseases, and suboptimal use of fertilizers. Elite climate smart maize hybrids have been developed through various breeding programs, including the WEMA partnership, which released over 120 drought-tolerant (climate-smart) hybrids trademarked DroughtTEGO®. Efforts are required to ensure that farmers can access, adopt, and use these hybrids to enhance productivity. Scale-up efforts need to be revamped, and more importantly, facilitation of high-quality seed production and market linkages for maize grain farmers to incentivise them to adopt these elite hybrids. This will ensure that smallholder farmers are not only food secure, but they economically benefit from selling surplus grain that they produce by planting high-yielding climate smart maize hybrids.

Objective

Funded by the African Development Bank (AfDB) under its Feed Africa Strategy (2016 -2025), the TAAT Maize Compact (TMC) aims to disseminate and scale out water efficient and other climate smart maize technologies from WEMA, Drought Tolerant Maize for Africa (DTMA), Drought Tolerant Maize for Africa Seed Scaling (DTMASS), Stress Tolerant Maize for Africa (STMA), International Institute of Tropical Agriculture (IITA) and NARS breeding programs across SSA. The technologies are scaled out in collaboration with both the public and private sector, and notably, with significant participation of commercial seed companies. Initially, TMC worked in Kenya, Uganda, Tanzania, Ethiopia, Rwanda, Zambia, Zimbabwe, Nigeria, Cameroon, Ghana, and Benin. However, during 2021 due to budget constraints, TAAT maize activities were implemented in only five countries (Kenya, Uganda, Tanzania, Nigeria, and Ghana).

AATF Interventions

AATF directly implements TAAT maize activities in East and Southern Africa while IITA implements activities in West and Central Africa. However, AATF conducts the overall coordination of the maize value chain. In-country supervision is conducted by appointed NARS personnel (TAAT Maize NARS Leads) in respective countries.

AATF, through its expertise in deployment and commercialisation, and in consultation with key stakeholders in maize production, identified proven high yielding maize varieties, which were earlier licensed to partner seed companies under the WEMA project, DTMA and other breeding pipelines and facilitated scale out activities such as seed production, field demonstration plot establishments, field days, distribution of small seed packs, employing good agricultural practices and post-harvest management training sessions to stimulate adoption and enhanced production by farmers, hence motivating seed companies to produce more seed due to the high demand created by AATF and its partners.

AATF engaged farmer groups and community-based organizations (CBOs) to facilitate market linkages between maize farmers and output markets so that they can sell surplus produce with ease at profitable prices. This incentivised farmers to adopt new varieties and other maize technologies due to the promise of markets for their surplus production.

Summary of Achievements and Impact

The TAAT Maize project focused on country engagements in preparation for phase 2 implementation of field activities in 2024. Several meetings and technical assistance on maize technologies that enhance productivity were developed and shared with countries that plan to develop their maize value chains. A regional training program was successfully conducted in Zimbabwe in November 2023 to building capacity of various maize value chain actors.

Strategic engagements were conducted for Kenya, Tanzania, DRC, Cameroon, Namibia, Zambia, Togo, Guinea Bissau, and South Sudan. The PADCA-6P project agreement for DRC was signed and implementation will take place in 2024.

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REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Summary of Achievements and Impact (Continued)

The TAAT Maize Compact participated in a joint training of 30 senior extension officers in Malawi. During the training the Maize Compact teamed up with Soyabean and HIB Compacts to train the officers in ToT sessions to equip them with good agricultural practices (GAPs) and climate smart agriculture (CSA). The trained officers are expected to cascade the knowledge to other technical staff and farmers.

Similar joint training sessions of 15 technical staff of the Cabinda project of Angola were trained on maize early generation seed (EGS) and certified seed production. In addition, project stakeholders were engaged to discuss maize seed system development in Cabinda.

Under the TSF maize project, a total of 59 participants (16 females and 43 males) from Somalia, South Sudan, Mozambique, and Zimbabwe were trained in a regional workshop in Zimbabwe. Out of the total participants 23 were youth (under 35 years). The first batch of 22 seed producers were trained in maize seed agronomy and quality standards to meet seed certification requirements.

Twenty-eight (28) Extension Agents and 9 maize grain producers were trained in maize agronomy, grain quality standards and marketing. The participants trained will cascade the training to junior staff in their departments and the farmers at large in their respective countries.

Key Challenges

Delays in approval of funds-TAAT 2 funds were received in late December 2023 and maize technologies will be deployed in 2024. Country engagements will also be continued to mainstream TAAT Maize technologies in country agricultural programs.

TECHNOLOGIES FOR AFRICAN AGRICULTURAL TRANSFORMATION (TAAT) – POLICY ENABLER COMPACT

The Problem

The TAAT Policy Enabler Compact was designed to support TAAT Commodity Compacts through activities aimed at creating an enabling environment for technology deployment and adoption by famers. This stemmed from the realisation that agricultural technologies have not been widely adopted in many parts of Africa due to several policy, regulatory and institutional challenges. These include: (i) weak agricultural extension systems; ii) poor linkages between research and extension; iii) long-drawn technology verification and release systems; iv) insufficient attention to incentivise private sector participation in commodity value chains; v) poor market linkages; vi) weak policy and regulatory environments; and viii) the absence of regionally coordinated policy and regulatory processes to deliver technologies across similar agro-ecological zones. The TAAT Policy Enabler Compact was thus rolled out in 2018 to address the foregoing challenges through advocacy for policy reform interventions essential for building functional seed systems with effective variety release and registration mechanisms, spurring market incentives and efficiency along agricultural value chains, and facilitating access to quality inputs through accreditation of agro-input suppliers.

Objectives

Funded by the AfDB under its Feed Africa Strategy (2016 -2025), the work program for TAAT Policy Enabler is anchored on four interdependent objectives namely: (1) assessment of policy and regulatory environment to facilitate creating a strong seed system for regional member countries via an evaluation and prioritisation of interventions that can be financed as part of TAAT country programs and dissemination to the seed industry; (2) increasing access and availability of quality seeds via accreditation of seed, fertilizer, and agroinput suppliers; (3) supporting harmonisation of regional technology release and registration policies through the study of existing protocols; and (4) facilitating competitive value-added chains through an analysis of existing value chain studies and synthesis of policies that create market incentives for farmers and agribusinesses.

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REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

AATF Interventions

Since inception in 2018, AATF coordinated the TAAT Policy Project while also implementing activities directly and also collaboratively with partner institutions i.e., IITA and The African Seed Access Index (TASAI Inc) to address some of the stated objectives. For instance, AATF collaborated with TASAI to conduct rapid country assessment of the seed policy environment in 15 countries (Burkina Faso, Burundi, Cote d’Ivoire, Democratic Republic of Congo (DRC), Liberia, Mali, Nigeria, Rwanda, Sierra Leone, Uganda, Malawi, Tanzania, Kenya, Zambia, and Zimbabwe). Assessment missions primarily sought to map the seed system in order to identify policy, regulatory and institutional gaps, and challenges to inform focused discourse with governments on essential policy interventions to engender efficiency in quality seed supply.

Achievements

Harmonization of policies and regulations around seed systems and delivery of fertilizers and climateresilient seeds continued to be a key focus area for the Technologies for African Agricultural Transformation (TAAT) Policy Enabler Compact, coordinated by AATF. Now in its second phase of implementation, the Compact continued engagements with Regional Economic Communities (RECs) while providing technical assistance to country governments in efforts towards implementation of policy harmonization within the framework of the Comprehensive Africa Agricultural Development Programme (CAADP) commitments, and the agricultural pillar of the Africa Continental Free Trade Agreement (AfCFTA).

Technical assistance was provided to support Regional Member Countries (RMCs) of the African Development Bank (AfDB) in the implementation of policy and institutional reforms to accelerate the delivery of fertilizers and climate-resilient seeds. Key areas of work for the Compact included i) spearheading assessment of seed and fertilizer sub-sectors in target RMCs to characterize and prioritize gaps requiring urgent policy reforms, ii) offering technical assistance to selected RMCs in development of seed roadmaps for priority commodities under African Emergency Food Production Facility (AEFPF) namely maize, wheat, Rice and soybean, iii) providing technical support and expert advice to RMCs in revision of policies and legislation aimed at reforming input subsidy programs to align with private sectorled market dynamics and iv) providing technical assistance to RMCs in support of domestication and implementation of regionally harmonized regulations for seeds, fertilizers and pest control products.

In-country meetings with governments of Angola, Burundi, Kenya, Malawi, South Sudan, and Zimbabwe were organised by the TAAT Policy Enabler Compact to foster a coordinated approach towards developing seed roadmaps for the timely production and delivery of certified seeds for priority crops such as maize, wheat, rice, and soybean. The consultations were carried out as part of AfDB financed African Emergency Food Production Facility (AEFPF), established in 2022 in response to disruptions in global food supply chains caused by the Russia-Ukraine conflict. AEFPF aims to provide certified seeds, fertilizers, extension services, and post-harvest management technologies to 20 million farmers across 33 target countries.

Other stakeholder discussions were organised in Sierra Leone during the High-Level Seed Business Summit in Freetown, that resulted in the development of a five-year Seed Roadmap for the country’s key crops -cassava, rice, maize and soybean. The Seed Roadmap, aligned with Sierra Leone’s national investment policies, plans and programs, will serve as a key guide to attract investments in the country by ensuring attention to the country’s urgent and prevailing agricultural sector needs.

Similar consultations were held with DRC in Kinshasa to provide technical assistance aimed at catalyzing the emergence of an enabling environment for adoption and use of agricultural technologies by small-scale farmers. The TAAT Policy will partner with national stakeholders to accelerate the process to enable the country to institutionalize the Draft Seed Law and other legal instruments for regulating the seed system pivotal for supporting agricultural transformation in the country.

A benchmarking visit and training at the Kenya Plant Health Inspectorate Service(KEPHIS) was organised by the Compact for 16 seed inspectors and seed analysts from eight African countries including Djibouti, Eritrea, Liberia, Mozambique Sierra Leone, Somalia, South Sudan and Zimbabwe in June 2023. Participants engaged with the KEPHIS staff on seed certification experience at their state-of-the art seed testing facilities in Nakuru County, Kenya. The five day training covered policies, laws and regulations at national and regional levels, seed production and processing and quality assurance in seed certification.

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REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Expected Impact

The proposed interventions will lead to increased access to and sustainable use of climate smart production packages to enhance productivity and incomes among vegetable farming communities in Eswatini.

Challenges

Access and use of digital technology in the vegetable value chain in Eswatini is significantly low. Therefore, there is need to invest more resources in knowledge dissemination, acquisition, and use of these technologies in building resilience and adoption in tackling the negative impact of climate change in the sector in Eswatini.

GENDER AND YOUTH EMPOWERMENT

Background and Introduction

AATF has a Gender Strategy to ensure that projects, governance, and the institutional framework are gender responsive at all stages of design, planning, implementation, and monitoring and evaluation of agricultural technology research and development. AATF is making deliberate efforts to include gender mainstreaming into its projects to ensure equitable access to the opportunities and benefits its projects and institutional development efforts offer.

AATF Interventions

There was a major focus on gender mainstreaming across all AATF projects during the reporting period. A gendered market study of hybrid maize adoption was conducted in Nigeria to facilitate the successful obilizationtion of AATF’s TELA maize products alongside other ongoing activities. The study will guide decisions to influence and design impact pathways for better outcomes which could be leveraged by AATF’s resource obilization team through development of proposals that are structured to address gender gap related challenges.

Summary of Achievements

AATF intensified its focus on contributing towards supporting women, men, youth, and the underprivileged persons get equal access to technologies, products, and markets as a means of improving their livelihoods. In 2023, a lean data study on Observer Farmers (OFs)—those who visit demonstration fields to learn—was conducted in Nigeria revealing the presence of gender disparities in decision-making processes regarding the adoption of PBR cowpea among farmers. It was observed that a higher proportion of male OFs, at 95%, compared to their female counterparts, at 75%, reported being the final decision-makers in trying PBR cowpea. Despite these disparities, the report stated there was widespread adoption and positive reception of PBR cowpea among households, with high levels of satisfaction and perceived benefits attributed to its high yield and pest resistance.The Study, conducted in collaboration with Tanager,aimed at understanding the experiences of both female and male OFs during their training sessions with demo farmers, particularly in planting and harvesting PBR cowpea. The study also sought to assess the impact on income, consumption, and household dynamics among OFs households who planted PBR cowpea.

A key recommendation from the study is to strengthen outreach and educational programmes targeting

The period under review saw the development of gender e-learning manual that will enhance the knowledge and skill of AATF staff and partner organisations in mainstreaming gender into programmes/projects.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

Expected Impact

To enhance gender mainstreaming across the AATF’s maize and Pod Borer Resistant cowpea value chains.

INTEGRATION OF NUTRITION-SENSITIVE AGRICULTURE FOR REALISATION OF A HOLISTIC FOOD SECURITY APPROACH

There are almost 870 million chronically undernourished people, more than two billion people that are suffering from nutrient deficiencies, and more than one billion people that are either overweight or obese globally. Agro-food systems are predominantly aimed at food security and not nutritional security with more emphasis on grain production. Addressing food availability and access is critically important but may not have a measurable impact on nutritional status of the population unless more flexible and locally adapted systems that incorporate both food and nutrition security are in place.

It is therefore recommended to adapt a Nutrition Sensitive Agriculture (NSA) approach which stresses on the multiple benefits derived from enjoying a variety of foods, while recognising the nutritional value of food for good nutrition, and its importance, and the social significance of the food and agricultural sector for supporting rural livelihoods.

The overall objective of NSA is to make the global food system better equipped to produce good nutritional outcomes. Thus, the scope expands from merely producing enough calories but putting into consideration the vitamins, minerals and other micro-nutrients required for healthy living, environmentally sustainable food production, and food processing and utilisation to ensure that the food reaches the consumers in an optimal state. NSA takes a systems’ approach that links sectors and intervention levels while aiming to deliver nutrient-rich, diversified, and balanced diets to all consumers throughout the year.

Objective

To transition AATF’s programs and projects from only focusing on food security through increased productivity and income, to improved nutrition security by making these programs and projects nutrition sensitive.

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REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

AATF Interventions

AATF is targeting PBR Cowpea as the first project for nutrition integration. To this end therefore, a formative study was scheduled to take place in four states in Nigeria to find out the key drivers of malnutrition, the barriers to nutrition interventions and to identify other organisations/players that are working on nutrition in these states in order to establish collaboration. The main objective for this study is to guide AATF to make well informed decisions on the appropriate interventions to put in place to improve the nutrition outcomes of PBR Cowpea farmers in Nigeria.

Summary of Achievements

Formative study for cowpea farmers in Nigeria was carried out in three states (Adamawa, Kano, and Kwara) in Nigeria, to determine the nutrition behaviors of smallholder cowpea farmers. The participants were categorized into producers, processors, and ministry of agriculture and extension agents. The key findings from the study showed that:

These findings were validated by selected participants in a one-day workshop that was conducted in Abuja, Nigeria in April 2023. These findings are being utilised to develop a social behaviour change communication strategy for cowpea farmers in the three states.

Expected Impact

The executed activities and proposed planned actions are expected to improve the nutritional status and security of smallholder farmers in SSA through the adoption of agricultural interventions that are nutrition sensitive.

BUILDING EDUCATION AND AWARENESS TO SUPPORT DECISION MAKING ON BIOTECHNOLOGY THROUGH THE OPEN FORUM FOR AGRICULTURAL BIOTECHNOLOGY (OFAB)

Objective

The objective of OFAB is to contribute to the creation of an enabling environment for the development, uptake, and adoption of agricultural biotechnology to address the challenges faced by smallholder farmers in Sub-Saharan Africa (SSA). OFAB facilitates constructive science-based conversations among stakeholders and decision-makers on agricultural biotechnology. OFAB convenes engagements between scientists, policymakers, and farmers to enhance confidence in the safety and benefits of modern biotechnology.

Specifically, OFAB:

The Problem

AATF established OFAB in recognition of the potential that biotechnology can offer towards agricultural development in SSA. However, the uptake and adoption of agricultural biotechnology is often derailed by negative perceptions and an unfavorable enabling policy environment. OFAB exists to facilitate active participation in the creation of an enabling environment for the adoption of new technologies by smallholder farmers. AATF believes that agricultural biotechnology is a critical technology that address some of the most critical food production stresses and could catalyse significant change in African agriculture. Africa, and the SSA has the least developed infrastructure to facilitate research, development, and adoption of agricultural biotechnology in the world.

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OBJECTIVES AND ACTIVITIES (CONTINUED)

Achievements

The Open Forum for Agricultural Biotechnology (OFAB) continued to hold discussions with policy and decision makers with influence across the political divide including associations and private sector to raise awareness on biotechnology and seek to move the biotech discussions forward.

In Kenya, AATF engaged with the Senate, National Assembly and various Ministries in Kenya to discuss the state of agricultural biotechnology in the country and seek ways to enhance people’s understanding of the technology. Meetings were also held with professional bodies including the Law Society of Kenya and Kenya Medical Practitioners Pharmacists Dentists Union (KMPDU) to raise awareness on biotechnology in view of the Cabinet decision to lift the ban on Genetically Modified Organisms (GMOs) in the country.

In both Kenya and Rwanda, high-level meetings with Chief Executive Officers (CEOs) were held to raise awareness on the role of biotechnology in the economic growth of the countries. These meetings provided the participants with the opportunity to gain insights on the safety and regulation of agricultural biotechnology, explore the scientific advancements and opportunities it presents throughout agricultural value chains.

OFAB also organized a consultative meeting in conjunction with Rwanda Agricultural Resources Board, and Rwanda Environmental Management Agency to discuss the implementation of the National Biosafety Bill which was approved by the Cabinet of Rwanda in July 2023 and subsequently passed into law following parliamentary approval in August 2023.

To effectively support policy change in the countries it operates, OFAB is implementing a new initiative dubbed Agriculture Biotechnology Trade Policy. With funding support from the United States Department of Agriculture (USDA), the initiative seeks to support the development of an enabling environment for agriculture biotechnology trade in Southern Africa. Under this initiative, OFAB will implement activities in six more countries in Southern African namely Zambia, Namibia, Botswana, Angola, DRC, and Madagascar.

The pronouncement provided a clear roadmap towards commercialising Bt TELA maize and other GM products in the country, and points to a positive and receptive political leadership. Accordingly, AATF seized the new momentum created by this development to intensely engage and work with biotech stakeholders in the country including government ministries and institutions, policymakers, academics, farmers, media, and professional bodies such as the Kenya Private Sector Alliance (KEPSA) to build confidence among Kenyans on GM technology. At the regional level, AATF held discussions with the African Union Development Agency (AUDA-NEPAD regarding partnership arrangements aimed at advancing the Science, Technology, and Innovation (STI) commitments of Agenda 2063, the continental long-term development framework. The discussions emphasized the importance of co-ownership of the African STI narrative to ensure that it accurately reflects the realities, aspirations, and priorities of the continent, its regions, and its nations.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

As part of continuous learning, OFAB facilitated capacity strengthening workshops for 220 media practitioners, 53 policy makers and the political elite. OFAB facilitated the first Attorney General Lawyers Learning Space, a platform where government lawyers gather to share experience on litigating cases involving GMOs and to familiarize themselves with international regulations governing biotechnology. The meeting took place in South Africa in March 2023 and was attended by 40 Attorney General Lawyers from OFAB Chapter countries. During the meeting, the lawyers had a taste of a GM products through an "eating is believing" session, where they sampled foods made from GM crops such as maize.

Working with the African Biosafety Network of Expertise (ABNE), OFAB hosted a retreat for 30 Biosafety Regulators from OFAB Countries in May 2023 in South Africa.The retreat sought to facilitate mutual learning and improve the implementation of national biosafety frameworks. During the retreat, the regulators established a coordination mechanism to enable ongoing knowledge sharing as they enforce their biosafety regulations.

Further, OFAB facilitated "seeing is believing" tours for four Burkina Faso policymakers to Nigeria to learn about progress made in approving and cultivating of Bt cowpea and Bt maize in the country. This followed approval by the National Biosafety Authority (NBA) for renewal of Bt Cotton, signaling the potential return of the technology to farmers by 2025.

A two-day Science Communication Capacity Strengthening Workshop was held in Dar es Salaam during the OFAB ARPM attended by 41 journalists from 10 countries. The training focused on sharing experiences on science, technology, and innovation reporting in a world where the state of media is fast evolving.

A march for science in support of the centrality of science in the national development agenda was held in Malawi in September 2023 attended by over 133 stakeholders including farmers. The occasion also celebrated 10 biotechnology Champions across the continent for their contribution towards enhancing understanding of biotech in their communities.

To sustain ongoing awareness efforts, AATF through OFAB facilitated the formation of three new networks with professional bodies to widen OFAB’s reach. These were: the Africa-wide journalist’s network, the Attorney General Lawyers’ Network, and the Regulators’ Network.

Recognition of exemplary biotech reporting by journalists continued with the OFAB Media Awards 2023 being co-hosted by AATF and the Government of Tanzania through the Council for Science and Technology (COSTECH) in Dar es Salaam. The Awards ceremony was attended by 41 journalists from 10 countries.

Focus on science communication for effective and efficient management of myths and misinformation regarding agricultural biotechnology contributed towards building positive momentum. OFAB proactively engaged with journalists and editors’ associations to support factual information sharing on biotechnology. In Kenya, OFAB held discussions with 77 members of the Kenya Editors Guild (KEG) where a partnership was discussed.

Challenges and Lessons Learnt

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES (CONTINUED)

DRIVING AGROECOLOGICAL TRANSITIONS IN THE HUMID TROPICS OF CENTRAL AND EASTERN AFRICA THROUGH ANSDISCIPLINARY AGROECOLOGY LIVING LABS (CANALLS)

The problem

The humid tropics of Central and Eastern Africa hold much promise for enhancing food and nutritional security within and beyond Africa. With a rich variety of agroecological zones and diverse farming systems, they are home for a great part of the rural population and a large diversity of living organisms, offering vital ecosystem services and potential for sustainable development. Still, if we are to tap into this potential, we need to address the complex environmental, social and economic challenges they face, which in cases are exacerbated by conflict and high vulnerability. In this context, CANALLS aims to drive agroecological transitions in the humid tropics of Central and Eastern Africa via multi-actor transdisciplinary Agroecology Living Labs (ALLs).

We start with eight ALLs in DRC, Burundi, Cameroon and Rwanda, working alongside and enabling over 20,000 farmers and value chain actors to co-create and benefit from optimal combinations of agroecological practices focusing on crops that are vital for subsistence and economic development (cocoa, coffee, cassava, rice, maize). In parallel, we engage in solid multi-actor collaboration with rural communities, advisory services and governments to develop a holistic assessment framework and evaluate the socio-economic and environmental performance of the co-created practices (accounting for trade-offs and synergies).

We use the comprehensive evidence generated to build capacity and share knowledge (practice abstracts, replication guidelines, policy recommendations) as well as to deliver fair, inclusive and sustainable business models along with services and tools for facilitating access to markets and enhancing demand for agroecological products. Our vision is to create a growing network of ALLs that leverages EU-AU cooperation to conduct transdisciplinary research, offer scientific support and drive coordinated action for delivering holistic solutions that help shape enabling conditions for agroecological transitions.

Progress

Through the CANALLS project, we trained start-up businesses for farmers and rural communities in Uganda, Ghana, Senegal, and Cote d'Ivoire. The goal was to replicate biobased solutions and support the growth of businesses in these countries. Specifically, we focused on training the businesses that will be supplying feedstocks, providing them with key entrepreneurship skills and knowledge.

A study on food systems, value chains and markets was conducted during the year under CANALLS that aims to drive agroecological transitions in the humid tropics of Central and Eastern Africa via multi-actor transdisciplinary Agroecology Living Labs. The project was initiated under the EU Africa partnership and focuses on agroecological transitions for food system resilience targeting four countries - Cameroon, Rwanda, Burundi, and DRC.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT

The trustees present their consolidated report and audited financial statements for the year ended 31 December 2022, which disclose the company’s and group’s state of affairs.

Achievements and Performance

AATF has made tremendous progress against performance indicators which include strengthening its commercial pipeline, gender, and youth inclusion, achieving, and assessing impact at scale and financial sustainability. Building-up to the achievements reported in the objectives and activities section above, the following are highlights of the key achievements at an commercialisation level.

Enhancing capacity of seed companies in the commercialisation pathway of AATF products

Together with our partners, we facilitated the release of 5 new crop varieties to the market. These included four DroughtTEGO® hybrids (WE2101, WE2106, WE3106, and WE5117) that were commercialized by two licensed seed companies in Zambia, and another one DroughtTEGO® hybrid (WE3106) released in Zimbabwe by one seed company using the Common Market for Eastern and Southern Africa (COMESA) catalogue. This brings to 108 the drought-tolerant maize hybrid varieties released through various projects by AATF and partners so far. In 2023, AATF and its seed company partners produced a total of 2,234 metric tons (mt) of certified seed, which is adequate to benefit 238,125 farmers in six countries. The produced seed consisted of 2,185 mt of DroughtTEGO in Zambia, Uganda, Kenya, Tanzania, and Ethiopia; 36 mt of cowpea in Nigeria; and 13 mt of hybrid rice in Kenya.

The total quantity of DroughtTEGO seeds produced was enough to meet the planting needs of approximately 218,500 farmers, each receiving 10 kgs of seeds. In addition, the quantity of cowpea and hybrid rice seeds produced was adequate to meet the planting needs of over 18,000 and 1,625 farmers respectively.

In 2023, AATF and its partners established a total of 2,588 demonstration plots for various seed varieties. These included 1,006 plots for maize hybrids, 22 for hybrid rice, and 1,560 for PBR cowpea. These plots served as venues for organizing 29 field days focused on the new products which were attended by over 3,000 farmers. The demonstrations helped to build farmers' interest in adopting the new varieties.

AATF partner seed companies continued to produce and sell significant quantities of certified seed of DroughtTEGO maize hybrids, PBR Cowpea and hybrid rice during 2023. The EGS entities, QBS (for East and Southern Africa) and ECOBasic (Nigeria and West Africa), also supplied seed companies in respective regions with high quality foundation seed that allowed the seed companies to maximize certified seed production. AATF partner seed companies continued to produce and sell significant quantities of certified seed of DroughtTEGO maize hybrids, PBR Cowpea and hybrid rice during 2023. The EGS entities, QBS (for East and Southern Africa) and ECOBasic (Nigeria and West Africa), also supplied seed companies in respective regions with high quality foundation seed that allowed the seed companies to maximize certified seed production.

Feed the Future Striga Smart Sorghum for Africa (FtFSSA) Project

The Problem

The parasitic plant Striga represents one of the most intractable challenges of cereal production in Sub Saharan Africa. The weed attaches to roots of crops to siphon nutrients leading to severe yield reduction. Crop losses in Striga infested fields can be between 30 and100 %, accounting for USD 7b in economic losses. The parasite is difficult to control because of its ability to produce many seeds that remain dormant in soil for long periods of time, only germinating in the presence of a suitable host crop – known to the parasite as biomolecules called strigolactones.

Intervention

In a USAID funded project called Feed the Future Striga Smart Sorghum for Africa (FtFSSSA), Kenyatta University, ISAAA, AATF, Bio and Emerging Technology Institute in Ethiopia, Addis Ababa University, are collaborating to impart striga resistance in sorghum using genome editing. Striga is an obligate parasite whose life cycle is intricately linked to its host; therefore, effective resistance can only be achieved by interfering with the “information exchange” between the host and the parasite at critical stages linked to Striga seed germination. A popular, high yielding but Striga susceptible African sorghum variety called Macia was successfully edited for Striga resistance.

Under the FtFSSSA project, AATF coordinates Work Package 2 which entails conducting freedom-to-operate (FTO) for genome edited products in Ethiopia and Kenya and securing regulatory approvals in the target countries.

Progress

The project obtained a material transfer agreement from Corteva in 2023. This agreement allows Corteva to transfer seeds for genome-edited sorghum with Striga resistance, facilitating the start of field trials. Another key development was exemption of the genome edited (GEd) sorghum from regulation by the National Biosafety Authority (NBA) under the Biosafety Act 2009, in accordance with the Kenya National Guidelines on Gene Editing Applications. Subsequently, the project acquired an Import Permit from the Kenya Plant Health Inspectorate Service (KEPHIS) to import seeds for planned field trials at Alupe in Western Kenya.

AATF’s new five-year strategy 2023- 2027

Scaling for Impact: Transforming farmers’ livelihoods in Africa through the scaling of agricultural technologies.

AATF’s new five-year strategy (2023-2027) builds on the lessons learned and progress made during our previous strategic periods. In this new phase of our strategic evolution, we will increase our focus on commercialisation and scaling, ensuring we attain our desired impact through the delivery of products and innovations to farmers. Specifically, under the new strategy we will:

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT

Our new strategy also seeks to ensure we maintain synergy and complementarity with major players and frameworks within the agricultural space. For example, our mission of transforming farmers’ livelihoods in Africa through innovative agricultural technologies aligns with the aspirations of the CAADP framework. Our work is also directly aligned with the AU’s Agenda 2063, as evidenced through our active involvement in the programmatic activities of the Africa Union Commission (AUC). We are a member of the AUC’s African Seed and Biotechnology Platform and currently lead the Working Group on Research, Variety Development and Seed Production. We have also reviewed and provided expert technical advice on the recently drafted AUC Biotechnology and Biosafety Guidelines.

Elsewhere, we are participating in the implementation of the African Union Science, Technology and Innovation Strategy for Africa (STISA 2024), through collaboration with AUDA-NEPAD. And finally, we have collaborated with the African Biosafety Network of Expertise (ABNE) to build functional regulatory systems for biotechnology crops.

The new strategy is driven by three overarching strategic objectives including:

1. Strategic Objective 1 - Diversify agricultural technologies and expand frontiers for Next-Gen products in Africa.

Over the next five years, we will continue our work on biotech and conventional technologies that address the needs of farmers in Africa. In addition, we will explore the use of innovative technologies to improve the productivity prospects of strategic crops, such as soybean, whose market opportunities are on an upward trend. We will also expand income streams through bio-based technologies, such as bio-refineries and pyrolysis, to develop products from farm waste such as cassava peel, rice husks and legumes. We will also aim to create better resilience by ‘bundling’ multiple technologies for diversified traits and combining technologies for pre- and post-harvest resistance. We will also diversify into technologies for utilisation in more resource-constrained environments, such as in marginal land ecologies. Soil improvement technologies are another growth area targeted for exploration in the coming years. Meanwhile, in the nutrition space we will assess the feasibility of emerging opportunities, such as food fortification during processing.

2. Strategic Objective 2 - Accelerate the commercialisation and scaling of agricultural technologies in Africa.

Commercialisation and scaling are critical to ensuring that farmers realise the benefits of higher yielding and adaptable crop varieties. But an underdeveloped private sector, and the inability of market systems to bring new technologies to end users, is delaying the gains associated with technology adoption. We will therefore help to create efficient market systems that respond to the demand for technologies. During the next five years, we will place greater emphasis on enhancing commercialisation and scaling, with a key focus on getting recently approved biotechnology products to market.

3. Strategic Objective 3 - Promote the creation of a functional enabling enviro ment for increased uptake of agricultural technologies and efficient markets in Africa.

Technology access and delivery requires a functional enabling environment. AATF has already made good progress in facilitating the creation of an enabling environment, which has resulted in several African countries embracing biotechnology in recent years. We have also engaged in processes to facilitate policy reforms and implementation for efficient seed systems and functional agricultural markets. In addition, we have supported RECs and their member states towards the development, implementation and domestication of regionally harmonised regulations or guidelines. We are committed to intensifying our efforts to create awareness and engage in advocacy through capacity strengthening, information sharing and collaboration. Through this work, we aim to help shift attitudes and perceptions and support governments in the development of a facilitative environment. We will also enhance our advocacy work programme to expand the acceptance and uptake of agricultural technologies across the continent, thereby creating a receptive environment for the testing and uptake of biotechnologies.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT

Reach/Scale of AATF Products

Our accomplishments during the strategic period of 2018-2022 demonstrate our determination to continue transforming the livelihoods of farmers in Africa. Overall, 4.8 million farmers were reached through our different interventions during the period, with over 3.8 million farmers accessing AATF seed based technologies. Our advocacy, outreach, and regulatory interventions benefitted an additional 47.3 million stakeholders and farmers. We have learned some important lessons from the just concluded strategy phase, which highlights the critical role of the enabling environment, commercialisation, stewardship, seed systems, and market development in achieving our mandate.

Resource Mobilisation

In 2023, the number of proposals submitted and approved was 6 which was lower than the 9 in 2022. However, the total proposal value was USD 85M which was almost double that of 2022. The number of unsolicited proposals was also higher at 5 versus the 3 developed in 2022. New donor results in 2023 were encouraging with additional ones like GIZ and Al Sumait. Five new partnerships were formed for fundraising.

Financial Review

This financial review incorporates the charity’s subsidiaries namely Qualibasic Seed (QBS) Kenya Ltd, Agridrive Nigeria Limited and ECOBasic Seed Company Limited. The subsidiaries’ details have been explained in the disclosures below as well as in the notes to the accounts.

AATF works to address some of the obstacles to technology access and delivery across the food value chain from research, production, processing through to market linkages. A priority area is to improve Africa’s seed system where one bottle neck is foundation seed. In 2017, to address this bottleneck, AATF established and is currently incubating a foundation seed company called QBS with the support of the Bill and Melinda Gates Foundation (BMGF). This will help to mitigate the problem of foundation seed supply, a vital missing link in the maize seed value chain in most Sub-Saharan African (SSA) countries. Currently AATF is holding the shares in trust with the agreement to divest them to future shareholders.

In 2021, a review to determine the optimal capital investment and shareholding aimed at having the seed companies (current QBS customers) become the majority of the new shareholders, was completed. However, with agreement from the QBS Board and BMGF, the actual process to solicit and bring new shareholders on board was postponed to allow QBS to complete more business cycles and to improve on performance. To support this, BMGF extended their grant to December 2024. The discussion of the optimal shareholding structure is ongoing with planned valuation of the company sometime in 2023. However, the actual transition will take place between 2023 and 2024.

Agridrive is a social enterprise incorporated in Nigeria and Kenya in February 2018 as Agridrive Nigeria Ltd and Agridrive Kenya Ltd respectively. They are both owned 100% by AATF. The purpose of Agridrive is to engage in various commercial ventures in the agricultural sector for transformative agriculture development. It is operating as a separate and distinct legal entity from AATF, however, some of the profits generated by the company will be re-invested back into AATF's not-for-profit work to ensure support and sustainability of AATF's institutional mission. Agridrive's first business venture is mechanisation services in Nigeria. Agridrive Kenya Ltd did not have any trading activities in the current reporting period.

Based on the successes of QBS, AATF incorporated another foundation seed company known as ECOBasic Seed Company Ltd. The company was incorporated in Nigeria on 17 August 2021 as a private limited liability company and commenced operations in September 2021. The company was created to address the challenge of availability of quality seed for farmers and production of early generation/foundation seed for seed companies. ECOBasic will focus on West Africa as QualiBasic (QBS) continues to service the East and Southern Africa markets. With these two subsidiary entities, we expect to witness an increase in access and use of certified seed by farmers and to ease the production of quality seed by companies.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Two of the subsidiaries, Qualibasic and Agridrive posted net losses after tax whereas Ecobasics posted profit during the year. This was expected for these start-ups since their break-even points were projected to be between five to seven years. QBS and ECOBasic are supported by donor funds i.e., BMGF and therefore do not expose the Foundation to any significant financial risk. The initial grant from BMGF to QBS came to an end on 31 December 2021 but was extended on a cost-extension for an additional three years to allow the subsidiary’s operations to crystallise and hence break even. The charity continues to provide incubation support and advisory to the subsidiaries aimed at ensuring that their revenues improve further hence resulting in reduced deficits and posting of surpluses in subsequent years.

AATF ownership structure in these subsidiaries is highlighted in the notes to the accounts.

Financial Review - Charity

Total income and endowments attributable to the charity for the year under review increased by 24% from US$9.76 million in 2022 to US$12.11 million in the current year. The amount of donations and grants increased to US$9.91 million from US$8.422 million in the prior year hence translating to a 17.7% increase. Investment income decreased by 8% as compared to the previous year. The increase in donations and legacies was majorly due to higher grant receipts for Open Forum on Agricultural Biotechnology (OFAB) and QBS projects compared to the prior year. The later was due to the extension of the project for an additional three years, hence increased grant amount in the current year as compared to the prior year.

Financial Review – Group

Total income and endowments for the year under review increased by 21.6% from US$11.5million in 2022 to US$14.0 million in the current year. The amount of donations and grants increased to US$9.9 million from US$8.4 million in the prior year hence translating to a 17.7% increase. The group recorded a net operating loss after tax for the year ended 31 December 2023 of US$4.3 million against net operating loss after tax of the prior year of US$1.0 million. Group expenditure increased by 22.3% to US$17.5 million as compared to US$14.3 million in the previous year.

QBS reported a net loss after tax of US$ 0.6 million as compared to 2022 profit of US$ 1.9 million due to decreased other operating incomes which decreased by 100% as compared to the prior year. Agridrive net loss after tax increased by 61.8% as compared to the prior year primarily due to increase in exchange loss by 1,519%. ECO Basic Seed Company posted a net profit of US$ 0.19 million against net loss after tax of $0.03 in 2022 being an increase of 718%.

Key Performance Indicators for the Board of Trustees

The key performance indicators for the board of trustees as stipulated in the board manual are as

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Principal Funding Sources

During 2023, AATF continued to receive considerable support from members for programs across Africa. In addition, strong internal policies and controls have contributed to maintaining administration costs at reasonable levels. While AATF’s focus is on SSA, it nevertheless offers the prospect and potential for its activities to benefit a wide range of stakeholders worldwide. AATF facilitates partnerships and networks that link food security, poverty reduction, market development and economic growth in ways that will change the conventional approaches employed by African producers engaged in agribusiness, to make these activities sustainable over time.

Going concern

The financial statements have been prepared on the going concern basis, which the trustees consider to be appropriate in the context of the Charity’s ability to meet its obligations as they fall due in the period of 12 months following the date of approval of these financial statements. This assessment is based on the fact that all the major donors continue to fund the activities of the Charity. Currently majority of the projects have multi-year funding commitments. The overall cashflow situation of the Charity is expected to remain stable and based on the latest cashflow forecasts, it is estimated that the organisation will have cash and cash equivalents to the excess of US$13.9 million, a year from the date of this report. This represents approximately 86% of our annual average budgets.

The trustees regularly review the medium and long-term financial position of the Foundation and the group, including its current and predicted future cash flows. During the 2023 financial year, the trustees gave considerable attention to the outlook of the Foundation and the group with a more rigorous financial modelling than usual . This includes aligning of the financial models to the new strategic plan covering year 2023 to 2027 . This alignment will be in line with any donor calls or interest as AATF looks for additional funding to implement the strategy.

The Foundation has a reasonable level of liquid resources from ongoing grants with Bill and Melinda Gates Foundation, and the Africa Development Bank (AfDB), USAID among others. In year 2023 the foundation received new funding from International Food policy Research Institute-IFPRI and Michigan states university among others . In addition, the foundation the Africa Development Bank (AfDB) for TAAT Maize, and TAAF policy compact that were in the pipeline in year 2022 kicked off in year 2023.

The substantive 2024 budget presented and approved by the board in May 2024 meeting shows that total expected income will equal the projected expenditure hence the Foundation is expected to operate at zero surplus/ deficit level. The Foundation has a reasonable level of liquid resources buttressed by new grants provided GIZ and Al Sumait. Therefore, after taking into consideration the funding commitments and the cash flow position, the trustees have a reasonable expectation that the Foundation and the group have adequate resources to continue in operational existence for the foreseeable future of a minimum of 12 months from when these financial statements are approved. Accordingly, they continue to adopt a going concern basis in preparing these financial statements.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Investment Policy

AATF's objective is to maximise the return of its investment funds while generating a high degree of liquidity to enable a response to operational needs. To meet this objective AATF invests in fixed term or call deposits with a high security rating and either fixed interest rates or with a fixed relationship to base rates. Our interest rate is of course lower than what the market can offer due to our cautiousness on ensuring capital protection. During the year, there was no equity investment held by AATF. The board of trustees reviews AATF's investment policy annually.

Reserves Policy

The trustees have examined the requirement for free reserves. These are unrestricted funds that are neither invested in fixed assets designated for specific purposes nor otherwise committed. The policy objective is "to maximise the programme impact to beneficiaries and maximise the value of net income".

The trustees consider that given the nature of AATF's work, ideally the general reserve should preferably be in surplus, which gives flexibility to cover temporary timing differences for grant claims, adequate working capital for our core costs and allows it to respond quickly to unexpected situations. As at 31st December 2023, unrestricted reserves for the group stood at US$ 9.9 million (2022: US$12.6 million).

The group had a total of US$1.6 million (2022: US$2.45 million) worth of fixed assets, intangible assets and biological assets, hence remaining with free reserves of US$7.7 million (2022: US$10.2 million). The charity had unrestricted reserves amounting to US$4.0 million (2022: US$10.0 million) and fixed assets of US$0.2 million (2022: US$0.2 million), hence free reserves of US$5 million (2022: US$9.8 million). Free reserves were invested in financial instruments, in form of fixed and call deposits, in order to increase internally generated income. The trustees review the reserves policy on an annual basis in light of the new strategic policies and future commitments.

As per the AATF Finance Manual, the Foundation “will maintain a general cash reserve equivalent to at least four months of annual budget unless explicitly authorised by the board to operate on a lower reserve level”. The 2024 approved budget by the board was US$17.04 million of which US$1.79 million were unrestricted funds and the balance of US$15.24 million being restricted funds.

All AATF reserves are unrestricted and free upon which the Foundation can freely draw when necessary and particularly to cover:

  1. Costs AATF will incur in case the organisation has to close.

  2. Seed money for AATF to continue funding new projects or initiatives not funded by donor restricted grants.

  3. Cost of operating expenses incurred while waiting for funding.

  4. Cost of operating expenses not covered by any restricted donors’ funds.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Donated Services

The trustees are grateful to Nigeria’s Federal Ministry of Agriculture who provide office space in Abuja as part of their support to our work in the country. It is estimated that AATF makes savings amounting to over US$18,000 on rent annually.

Remuneration Policy

All AATF staff pay is dictated by a salary survey that is conducted among comparators, funds availability and board approval. The survey is carried out every three years by an independent consultancy firm. The management presents the board with the results of the survey and suggestions of what is feasible taking into account the Foundation’s budgetary situation. The audit committee of the board evaluates the survey results together with the management’s proposal and makes its recommendation to the board for approval.

Trustees’ Indemnity Insurance

AATF has granted an indemnity against liability to its trustees in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the trustees’ report.

Financial Risk Management

The Foundation’s activities expose it to a variety of financial risks, including credit and the effects of changes in foreign currency exchange rates.

The Foundation’s overall risk management programme focuses on the unpredictability of changes in the business environment and seeks to minimise their potential adverse effect on its performance by setting acceptable levels. Risk management is carried out by a committee made of staff from the organisation’s finance, technical, and legal departments, and the Executive Director’s office. A detailed analysis of the financial risk management for the year is described below.

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AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Market Risk

(i) Foreign exchange risk

The Foundation receives its income (donations) mainly in US Dollars (US$) and Great Britain Pounds (GBP). However, it incurs and pays for expenses in either Kenya Shillings (KES) or US$. However, the Foundation’s exposure to foreign exchange risk is minimal, and is mainly related to KES transactions. Invoices are settled in the currency in which they are received, hence minimal foreign currency gains/losses.

Balances held in currencies other than US$ are as follows:

Cash and bank balances in KES
Cash and bank balances in GBP
Cash and bank balances in NGN		 2023
US$
56,601
1,616
383,315
441,532		 2022
US$
190,390
4,157
90,438
284,985

(ii) Interest Rate Risk Management

The Foundation uses a fixed negotiated rate for both fixed and call deposits to avoid such risks related to floating rate.

(iii) Price Risk

The Foundation does not hold investments that would be subject to price risk; hence this is not relevant.

(iv) Credit Risk

The Foundation’s credit risk is primarily attributable to its unexpended grants receivable. The credit risk on liquid funds with financial institutions is also low because the counter parties are banks with high credit-ratings.

The amount that best represents the Foundation’s maximum exposure to credit as at 31 December 2023 was made up as follows:

Grants Receivable
Other Receivables
Cash and short-term deposits		 Current
US $
1,669,901
1,293,456
12,158,167
15,121,524		 Past due
US $
0
0
0
0		 Impaired
US $
0
0
0
0

The amount that best represents the Foundation’s maximum exposure to credit as at 31 December 2022 was made up as follows:

Grants Receivable
Other Receivables
Cash and short-term deposits		 Current
US $ 343,192
1,234,256
16,597,941
18,175,389		 Past due
US $ 0
0
0
0		 Impaired
US $ 0
0
0
0

39

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of trustees through the senior management of the Foundation. The management has built an appropriate liquidity risk management framework for the Foundation’s short, medium and long-term funding and liquidity requirements. The Foundation manages liquidity risk by maintaining banking facilities through continuous monitoring of forecast and actual cash flows.

The table below analyses the Foundation’s financial liabilities that will be settled on a net basis into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

Payables 2023
US$ 1,058,420		 2022
US$ 1,128,221

Major Risks

The major risks to which the charity is exposed to (managing existing potential liabilities) have been identified and reviewed by the trustees. The production and use of genetically modified organisms (GMOs) can create many potential liabilities. The producer or user of GM crops may be liable for the damage they cause to the person or property of another person or to the environment. Pollen flows from transgenic to non-transgenic crops cause damage. For instance, transgenic pollen flow may ruin the “organic” status of crops or the purity of the genetic material of other seeds. Questions may arise as to whether transgenic crops or their food products are toxic, allergenic or pose a long-term health threat. Claims for compensation in actions for personal or property damage could be based on a theory of negligence, trespass, nuisance, or strict liability.

The producer or user of GMOs may also be liable for infringement of intellectual property (IP) rights. This liability might even extend to farmers whose crops are accidently affected by the presence of GMOs as a result of pollen flow or seed comingling.

A full risk register is updated annually, and the audit committee of the board reviews it twice a year. While all risks are taken seriously, the board and management have identified the following to be the most critical risks:

The root causes were identified, and mitigating measures put in place.

The charity has instituted the following systems or procedures to manage those risks:

40

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

AATF’s 5-year strategy (2022-2027) strives for food and nutrition security resulting from increased adoption of commercialised technologies by farmers with 20 per cent increase in yields and of 15 per cent in incomes. To still achieve these targets, AATF is planning to implement the following interventions:

  1. Diversify Technologies and Accelerate Commercialisation: fast-tracking mitigation of food shortages and extending storability of food commodities.

Short term interventions:

Medium to long term interventions:

Short term interventions:

41

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT (CONTINUED)

STRATEGIC REPORT (CONTINUED)

Medium to long term interventions:

Risk Management

In addition to the risks mentioned above, the board of trustees reviews AATF's key risks regularly as part of the monitoring process. This review, combined with that of key financial controls and other operational systems carried out through a structured audit program of each country of operation, have, in the past, provided AATF with adequate risk assurance. However, a more comprehensive mechanism to manage the operations of AATF has been incorporated in the new monitoring and evaluation system known as “AATF Monitoring Evaluation, Learning and Improvement and Align (AMELIA)”. AATF has a dedicated Regulatory Affairs Unit in charge of technological risks.

Through this mechanism, risk mapping, analysis, and mitigation processes are carried out by the trustees and management in a more structured way. It is generally accepted that the board of trustees has overall responsibility for risk oversight. One of the roles of the board as stated in the AATF Board Manual is to ensure that “the future well-being of AATF is not jeopardised by exposing its financial resources, its staff or its credibility to imprudent risks”.

As such, a risk management committee has been established with the purpose of assisting the board in executing its oversight responsibilities with regard to the risk appetite of the Foundation; the risk management and compliance framework; and the governance structure that supports it.

Risk Management Committee

By establishing a Risk Management Committee (the “Committee”), AATF management wants to provide its board with an understanding of the critical risks inherent in the Foundation’s strategy. The board will find useful information about the critical assumptions underlying that strategy that will enable it to remain alert to organisational dysfunctions that can lead to excessive risk-taking. The board will therefore be able to provide input to executive management regarding critical risk issues on a timely basis.

The risk oversight process enables the board and management to develop a mutual understanding regarding the risks the Foundation faces over time. The AATF executive management has established a risk management committee to assist the board of trustees in fulfilling its oversight responsibilities with regard to the risk appetite of the Foundation and the risk management and compliance framework, and the governance structure that supports it. Risk appetite is defined as the level and type of risk the Foundation is able and willing to assume in its exposures and business activities, given its objectives and obligations to stakeholders.

42

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FPIANCIAL STATEIIEKfs. YEAR ENDED 31 DECEMBER 2023 TRUSTEES. ANNUAL REPORT (CONTINUED) STRATECIC REPORT ieoNTINUED} The committee has the responsibility to.. Review and assess risks facing the organisation and the steps management has taken to monitor, control, and report suth exposures, including, wilhout limitation, financial, technological, reputational, operational, fraud, strategiG, and busines8<ontinuity risks, among others. Arrange risk assessment and management forums involving AATF Iru$lees and staff. Review reports and soqnifiranl intemal and external audit findings with resp8Ct to the risk management and compliance activities of the Foundalion. togelhei with managemenvs responses and follow-up of these reports. Rev￿ significanl reports from Tegulatory aaencies relating to risk management and compli8nce issues, and management's response. Advise trustees on risks facing AATF ￿l¢e a year during regular board sessions. Recommend to the audit tt)mmittee ol the board to arrange for audits on subj&t matters Édentified through risk assessment. Recommend any necessary stralegic or organisalional changes as detemiined during risk assessment. Prepare and issue risk assessment and management reports lon individual casfrs and for the year). Review and evaluate the Foundab'on's policies and practices concerning risk assessment and managemenl and ￿l¢e a year present to the audit committee of the board a report summarising its view of the Foundation's risk assessmenl and management reports. Develop semi-annu81 reports regarding, among other things, the Foundation's compliance with laws and regulations to the audit committee of the board. Escalate lo the audit committee for discussion at a joint session of the audit and risk committees items that have a significant ¢ompliance impact or that require significant financial statemenvregulatory disclosur8S. Trustees, Report and Strategic Report approved by the Board ofTrustees and signed on b half of the Board. Prof. Agoroy Ambarfchair. Board of Trustee8 Dats: 20

TRUSTEES. RESPONSI8IUTIES STATEMENT The trustees (WI￿ are also diroctors of the Afr¢can Agricultural Techrh)Ic4Jy Foundation for cornpany law) are respOns￿le tor prepanng the Trustaes, Nnnuai Report and the financuil statements in acLordan Wblh 2ppli¢bè Iw •nd reguwions. Company law requires the trustee5 lo prepare financial stal8ment8 for each financial year. Under that law the trustees have elected to prepafe the financial statements in accordance wrth unit￿ Kin9d¢)m Generally A£cepted Accounb'ng Pr&I￿e (Unrted ￿ngdorn A¢counbng St2ndards and applicable law). including FRS 102 The Finanoal Repofknng Slandard applicable in the UK and Republ￿ of Irel)d. Under company law the trustees must not approve the financial statements ￿nIaSS théy are sab$fi6d that they give a true and fair view of the state of affairs of the chilable ¢cAnpany 8rKI gro￿1. arKI of the inrA)ming resour￿ and applicat￿n of resources, including the inc)me and expenditure, of the chaftlabfe company and group for that pert¥J. In preparina these finanoal statements, tho twstee8 •r• requirad to: . •el•d suitab￿ polKies and then appty tr￿n consistenty. observe the methcYs and principles in the Chantses SORP IFRS 102>. makejudgements and accounting estimates that are reasoftablè and prudènt. ' state whether applicable UK Accounting Standards have been follN*&y. subject to any matèrial departures disclosed and explained in the financial statements. prepare the financial statements on the going concern b85ig unl88S It is inappropriate to pre4ume that the charitable company will continue in buslnesg. The trustees are responsfDle for ke&ping adequate accounting record8 that are sufficient to show and explain the charitable company's transactions and disclose with rea8on8ble accuracy al any lime the nancial ￿￿)SI￿On of the company and enable them lo ensure that the financial ststements comply with Ihe Companies Act 2006. They are al￿ responsible for safeguarding the assets of the charitable company and hence for taking reasonab￿ steps for th8 prevention and deleclton of fraud and other irregularities. The trustees confimi that: 80 far a¥ each trustee is aware, there is no relevant a￿lIt information of which the charftable ¢ompany'8 auditor is unaware." and . the trustees have taken all the steps that they ought lo have taken as trustees in order to make themselves aware of any relevant infomiation and to establlsh that the charitable company's audttor Is aware of that information. The trustees are responsible for the maintenance and integrty of the corporate and financial infonnation included on the charitable company's websit8. Legislation in the Unlted lQngdom governing the preparation and di58ernlnation of financial $tat¢rnents may differ from legi31alion in olhef jurisdictions Approved by the Board of Trustees and signed on behalf of the Board of Trustees. Prof. Aggrgy A Chalr- Bo•rd of Tru•tea8

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

Opinion

We have audited the financial statements of African Agricultural Technology Foundation (the “charitable company”) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern.

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

45

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION (CONTINUED)

Responsibilities of trustees (Cont…)

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102) and the Companies Act. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The key laws and regulations we considered in this context were General Data Protection Regulation, health and safety legislation, employee legislation, taxation legislation and seed and bio-safety laws.

Auditing standards limit the required audit procedures to identify non ‑ compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of grant income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, income testing on a sample basis, reviewing accounting estimates for biases, reviewing any regulatory correspondence and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non ‑ compliance and ‑ cannot be expected to detect non compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

46

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION (CONTINUED)

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

47

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

REPORT AND FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION (CONTINUED)

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kerry Brown (Senior statutory auditor)

for and on behalf of

Crowe U.K. LLP

Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Date: 24 September 2024

48

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2023

R ENDED 31 DECEMBER 2023
Note
Income and endowments from:
Grants and donations
2 (a)
Charitable activities
2 (b)
Other trading activities
2 (c)
Investment income
- Gain on disposal of fixed asset
Total
Expenditure on:
Raising funds
Charitable activities:
- Direct costs
3
- Support costs
3
Total
Net operating income
Other gains and losses
Exchange difference on
translating foreign operations
Transfers
12
Net income / (expenditure)
Attributable to the parent
Attributable to minority interest
Reconciliation of funds
Total funds b/f – as previously
stated
Total funds b/f – as re-stated
Net movement in funds
Total funds carried forward**		 Restricted
funds
2023
US$
9,916,576
0
0
0
0		 Unrestricted
funds
2023
US$
0
2,194,673
1,352,054
547,138
20,102		 Total funds
2023
US$
9,916,576
2,194,673
1,352,054
547,138
20,102		 Restricted
funds
2022
US$
8,422,047
0
0
0
0		 Unrestricted
funds
2022
US$
0
1,339,067
1,178,134
594,526
7,603		 Total funds
2022
US$
8,422,047
1,339,067
1,178,134
594,526
7,603
9,916,576 4,113,967 14,030,543 8,422,047 3,119,330 11,541,377
0
8,288,843
2,594,221		 3,120,771
901,354
2,612,487		 3,120,771
9,190,197
5,206,708		 0
7,816,891
2,257,690		 2,493,272
362,229
1,343,931		 2,493,272
8,179,120
3,601,621
10,883,064 6,634,612 17,517,676 10,074,581 4,199,432 14,274,013
(966,488)
0
(601,386)		 (2,520,645)
(828,115)
601,386		 (3,487,133)
(828,115)
0		 (1,652,534)
0
(4,644,482)		 (1,080,102)
1,696,993
4,644,482		 (2,732,636)
1,696,993
0
(1,567,874) (2,747,374) (4,315,248) (1,652,534) 5,261,373 (1,035,643)
(1,567,874)
0
8,475,530		 (2,748,210)
896
12,642,325		 (4,316,084)
896
21,117,855		 (6,297,016)
0
14,772,546		 5,260,537
836
7,381,788		 (1,036,479)
836
22,154,334
8,475,530
(1,567,874)		 12,642,325
(2,748,210)		 21,117,855
(4,316,084)		 14,772,546
(6,297,016)		 7,381,788
5,260,537		 22,154,334
(1,036,479)
6,907,656 9,894,115 16,801,771 8,475,530 12,642,325 21,117,855

** In Note 16 (page 73), we have included the amount of governance costs of US$ 241,349 (2022: US$216,312) in the support costs.

N/B: Please refer to notes below for further details

The Charity’s net deficit during the year ended 31 December 2023 was US$ 3,385,038 (2022: US$ 3,084,018).

The Statement of financial activities includes all gains and losses recognized in the year

The notes on pages 52 to 79 form part of these financial statements.

49

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION Group Group Notss Consolidated Consolidated CharKy 2023 2023 2022 us$ uss Charlty 2022 Flxed assets Intangible assets Tangible assets Investment in subsidisries Biological assets uss us$ 88 8b lg 8c 9,837 1,508,801 26,548 2,337.325 163,110 36,719 230,089 36,719 90,841 1609 479 83,485 Current ￿ets Grants debtors Other debtors Deferred expense Short term deposits Cash at bank and in hand Loans to group companies Inventories 1,669.901 1.864,320 73.349 10,419,509 2.339,055 343,192 1,916,421 62,884 13,777,628 3.127,630 1,669,901 1.293,456 10 343,192 1,234,256 10,250,774 1,907,393 845,707 13,727,750 2,870,191 1.179.702 23 754,240 17 120,374 1,040,611 20 268 366 Current Ilabilltles Unexpended grant creditors Capital grant Deferred income Current tsx payable Other creditors 15 967 231 19 355 091 {10.983) 1413 071 1424,054 15,696,320 (8,605) 1,517 772 1526,377 18.741,989 11 1,058 420 1,058 420 14 908.811 1128 221 1128 221 18.226.870 Net current assets Non¢urrent liabllltles Deferred tax liabilty Deferred granl Total assets less liablltties (133,721) 370,236 (70,696) 22 16,801.842 21,118,651 15,108,640 18.493,678 Unrestricted funds 12 9.894.115 12.642,325 8.200,984 10,018,148 Restricted funds 12 6,907,656 16.801,771 71 8,475,530 21,117,8S6 796 6,907,656 16,108,640 8,475,530 18,493.678 Minority interest Total funds 16,801.842 21,118.654 16,108,640 10,493,ts70 These financial statements are p￿pared in accordance with the Companies Act 20￿ and ar8 approved by the Bo of Trustees and signed on its behalf.. Prof. Agg mbali Chair- Board of Trust Date The notes on pages 52 to 79 forn part of these finanaal 8L*emgnt8. 50

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

CONSOLIDATED STATEMENT OF CASHFLOWS - YEAR ENDED 31 DECEMBER 2023

Cash flows from operating activities
Note
Cash provided by operating activities
14
Tax received/(paid)
Net cash provided by operating activities
Investing activities
Investment income
Purchase of assets
8b
Purchase of intangible assets
8a
Disposal of biological assets
8c
Purchase of biological assets
8c
Proceeds on disposal of equipment
Movement in loan advanced to group companies
25
Investment in subsidiaries
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Effect of translation on foreign entities
Cash and cash equivalents at the end of the
reporting period
Analysis of changes in net debt
Cash and cash equivalents
Cash
Cash equivalents		 Group
Consolidated
2023
US$
(3,796,708)
2,378		 Group
Consolidated
2022
US$
(4,444,909)
0
(4,444,909)
13,094
(601,401)
(33,209)
133,683
(83,485)
150,378
0
0
(420,940)
(4,865,849)
19,928,698
1,842,409
16,905,258
Cashflows
(788,575)
(3,358,119)
(4,146,694)		 Charity
2023
US$
(4,760,529)
0
(4,760,529)
9,698
(23,333)
0
0
0
395
333,995
0
320,755
(4,439,774)
16,597,941
0
12,158,167
As at 31
December
2023
2,339,055
10,419,509
12,758,564		 Charity
2022
US$
(2,178,481)
0
(3,794,330) (2,178,481)
9,698
(232,238)
0
83,484
(90,840)
31,163
0
0		 13,094
(105,714)
0
0
0
3,182
(176,729)
0
(198,733)
(3,993,063)
16,905,258
(153,631)		 (266,167)
(2,444,648)
19,042,589
0
12,758,564 16,597,941
As at 01
January 2023
3,127,630
13,777,628
16,905,258

The notes on pages 52 to 79 form part of these financial statements.

51

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

1 ACCOUNTING POLICIES

Statement of Compliance and Basis of Preparation

African Agricultural Technology Foundation is a public benefit entity, a private company limited by guarantee, registered in England and whose headquarters is in Nairobi, Kenya. The Registered Office is c/o Arnold and Porter (UK) LLP, Level 30, Tower 42, 25 Old Broad Street, EC2N 1HQ, London, UK. The main country of reporting is Kenya where financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The audit exercise is undertaken both in Kenya and the UK. However, since the organisation is a registered company and charity in the UK, we are required to prepare financial statements in compliance with the Charities SORP (FRS 102) “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”. African Agricultural Technology Foundation is a public benefit entity for the purposes of financial reporting in accordance with FRS 102.

The financial statements have been prepared under the historical cost convention. Except for the analysis of highest paid staff which is given in GBP for clarity of disclosure compliance, the financial statements are prepared in US$ which is the functional currency of the Company and rounded to the nearest US$.

A separate statement of financial activities and income and expenditure accounts are not presented for the Charity itself in accordance with the applicable exemptions afforded by section 408 of the Companies Act 2006. All group entities have uniform accounting policies.

The principal accounting policies adopted in the preparation of the financial statements are set out below. The financial statements are prepared on a going concern basis.

Going concern

The financial statements have been prepared on the going concern basis, which the trustees consider to be appropriate in the context of the Charity’s ability to meet its obligations as they fall due in the period of 12 months following the date of approval of these financial statements. This assessment is based on the fact that all the major donors continue to fund the activities of the Charity. Currently majority of the projects have multi-year funding commitments. The overall cashflow situation of the Charity is expected to remain stable and based on the latest cashflow forecasts, it is estimated that the organisation will have cash and cash equivalents to the excess of US$13 million, a year from the date of this report. This represents approximately 86% of our annual average budgets.

The substantive 2024 budget presented and approved by the board in May 2024 meeting shows that total expected income will equal the projected expenditure hence the Foundation is expected to operate at zero surplus/ deficit level.

The Foundation has a reasonable level of liquid resources from both ongoing and new grants with Bill and Melinda Gates Foundation, the Africa Development Bank (AfDB), USAID, International Food policy Research Institute(IFPRI) and Michigan states university among others . Therefore, after taking into consideration the funding commitments and the cash flow position, the trustees have a reasonable expectation that the Foundation and the group have adequate resources to continue in operational existence for the foreseeable future of a minimum of 12 months from when these financial statements are approved. In addition, the Foundation received a 14 months’ extension from BMGF for the TELA project and another 7 months extension for its EGS project. Therefore, after taking into consideration the scenarios, the trustees have a reasonable expectation that the Foundation and the group have adequate resources to continue in operational existence for the foreseeable future of a minimum of 12 months from when these financial statements are approved. Accordingly, they continue to adopt a going concern basis in preparing these financial statements.

The notes on pages 52 to 79 form part of these financial statements.

52

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

1 ACCOUNTING POLICIES (CONTINUED).

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Specific areas of judgement include depreciation and useful economic lives of assets and provisions. The nature of the estimation means that actual outcomes could differ from those estimates. None of the judgements have a significant effect on the financial statements. These judgements and key sources of estimation uncertainty are set out in this section i.e., Note 1 (accounting policies) and specifically as set out in pages 52-79.

Income

Income is recognised in the accounts when all the below criteria are met:

Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable.

Overhead income represents revenue derived from projects’ grants to support these indirect costs meant to cover administrative or other expenses related to general operations that are shared among projects and/or functions and which cannot be directly allocable to a particular activity. These may include executive oversight, existing facilities costs, accounting, grants management, legal expenses, utilities, and audit.

Grants are recognised as revenue upon the fulfilment of donor-imposed conditions or restrictions attached to the grants as explained below:

Structure of Funds

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as a restricted fund. Some restricted funds are in a deficit position due to the timing of recognition of grant income under the SORP. In the short term the projects funded by these restricted grants are prefinanced from general funds for cash flow purposes, the project expenditure is then matched with further restricted grants received since the year end when such expenditure meets the criteria of the related grant funding. Funds where the capital is held to generate income for charitable purposes and cannot be spent are accounted for as endowment funds. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the Trustees have chosen to earmark for set purposes are treated as designated funds. The major funds held within these categories are disclosed in note 2.

Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any Value Added Tax (VAT) which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Other costs include those costs associated with meeting the constitutional and statutory requirements of the charity and includes the audit fees and costs linked to the strategic management of the charity.

Support Costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, and support costs are apportioned on an appropriate basis e.g., estimated usage, as set out in note 3.

The notes on pages 52 to 79 form part of these financial statements.

53

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

Tangible Assets

Property, plant, and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Items of lasting value with an initial acquisition cost of less than US$1,000 are charged to operating expenses in the year of purchase. For some donors like Bill and Melinda Gates Foundation all items valued less than US$ 5,000 are considered operational expenses and not capital expenses.

Depreciation is provided on all property, plant, and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Computers and related equipment 3 years Motor vehicles 4 years Furniture and equipment 5 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Biological Assets

An entity shall recognise a biological asset or agricultural produce when, and only when:

Biological assets are measured at their fair value less costs to sell.

A gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell is included in surplus or deficit for the period in which it arises.

Where market determined prices or values are not available, the present value of the expected net cash inflows from the asset, discounted at a current market-determined rate is used to determine

An unconditional government grant related to a biological asset measured at its fair value less costs to sell is recognised as income when the government grant becomes receivable.

Where fair value cannot be measured reliably, biological assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Intangible Assets

Intangible assets acquired separately from a business are capitalised at cost. After initial recognition, intangible assets are stated at cost less accumulated amortisation and accumulated impairment. Intangible assets are amortised on a straight-line basis over their estimated useful lives. The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

The useful economic lives of intangible assets are as follows:

Computer Software 3 years

If there are indicators that the residual value or useful life of an intangible asset has changed since the most recent annual reporting period previous estimates shall be reviewed and, if current expectations differ the residual value, amortisation method or useful life shall be amended. Changes in the expected useful life or the expected pattern of consumption of benefit shall be accounted for as a change in accounting estimate.

The notes on pages 52 to 79 form part of these financial statements.

54

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

Operating Leases

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

Retirement benefits obligations

AATF operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period.

AATF makes pension contributions to an offshore defined pension contribution scheme (Vanbreda International) for expatriate staff and to a local defined pension scheme (Liberty) for all Kenyan staff. The contribution made is 15 per cent equivalent of each employee’s basic salary.

Translation of foreign currencies

The Foundation’s financial statements are presented in United States Dollars (US$), the functional currency. Transactions and balances expressed in currencies other than the US Dollar are treated as follows:

Taxation

As a charity, AATF is exempt from tax on income and gains falling within Chapter 3 of Part 11 to the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. The charity is exempt from corporation tax and enjoys a Value added Tax (VAT) exemption.

Donated Services

The trustees are grateful to ARCN who has provided office space in Abuja as part of their support of our work in Nigeria. No value has been placed on this in the SOFA as it is not material in the context of the accounts.

The notes on pages 52 to 79 form part of these financial statements.

55

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

Financial Instruments

The company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:

Financial Assets

The company classifies all its financial assets as loans and receivables.

Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g., trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the company will be unable to collect all the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.

For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the income statement. On confirmation that the trade receivable will not be collected, the gross carrying value of the asset is written off against the associated provision.

Financial Liabilities

The company classifies all its financial liabilities as liabilities at amortised cost. Financial liabilities at amortised cost including bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of liability carried into the statement of financial position.

Inventories

Inventories are measured at the lower cost and net realisable value on the first-in-first-out basis. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The notes on pages 52 to 79 form part of these financial statements.

56

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

2 (a) INCOME FROM GRANTS AND DONATIONS

Restricted
funds
Voluntary Income
2023
US$
USAID
2,027,916
Bill & Melinda Gates Foundation – TELA
3,000,000
Bill & Melinda Gates Foundation – Cowpeas
0
Bill & Melinda Gates Foundation – OFAB
1,800,000
Bill & Melinda Gates Foundation – EGS
1,122,184
Bill & Melinda Gates Foundation – QBS
516,843
CSI100
62,632
Bill & Melinda Gates Foundation – Other
5,685
Africa Rice
28,729
MSU001
2,281
IFPRI 001
99,995
Bayer
32,032
PADCA
45,254
UKRI001
2,731
GCA
0
International Institute for Tropical Agriculture
1,054,594
Syngenta Foundation for Sustainable
0
EU - REA
115,700
Total voluntary income - Charity
9,916,576
Total voluntary income - Group
9,916,576
2 (b) Charitable activities
Overhead income
Miscellaneous income
2 (c) Other trading activities
Trading revenues
Other income
Australia
Europe
Africa
Income is analysed by geographical source of origin
North America		 Unrestricted
funds
2023
US$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 Total
funds
2023
US$
2,027,916
3,000,000
0
1,800,000
1,122,184
516,843
62,632
5,685
28,729
2,281
99,995
32,032
45,254
2,731
0
1,054,594
0
115,700
9,916,576
9,916,576
8,572,623
120,712
1,160,609
62,632
9,916,576
1,318,219
876,454
2,194,673
1,186,554
165,500
1,352,054		 Total
funds
2022
US$
2,237,642
1,763,422
1,000,000
2,200,000
663,138
0
100,094
0
0
0
0
0
50,996
0
261,867
100,278
(16,979)
61,589
8,422,047
8,422,047
7,973,853
351,870
(3,790)
100,114
8,422,047
1,071,659
267,408
1,339,067
1,045,264
132,870
1,178,134

The notes on pages 52 to 79 form part of these financial statements.

57

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

3.
CHARITABLE ACTIVITIES - 2023
RES001
Expenditure
USD
Outsourced Research Activities
7,245
Project supplies
15,775
Travel
225,035
Conference & W/shops
550,431
Rentals
102,868
Institutional Support
0
Direct staff costs
0
Cost
directly
allocated
to
activities
901,354
General Personnel Costs
1,112,565
Consultancy and other profession 471,300
Depreciation
5,587
General expenses and supplies
172,056
Forex Losses on revaluations
609,630
BOT
241,349
Support
cost
directly
allocated to activities
2,612,487
Total for the period
3,513,841		 3.
CHARITABLE ACTIVITIES - 2023
RES001
Expenditure
USD
Outsourced Research Activities
7,245
Project supplies
15,775
Travel
225,035
Conference & W/shops
550,431
Rentals
102,868
Institutional Support
0
Direct staff costs
0
Cost
directly
allocated
to
activities
901,354
General Personnel Costs
1,112,565
Consultancy and other profession 471,300
Depreciation
5,587
General expenses and supplies
172,056
Forex Losses on revaluations
609,630
BOT
241,349
Support
cost
directly
allocated to activities
2,612,487
Total for the period
3,513,841		 Subtotal
USD
7,245
15,775
225,035
550,431
102,868
0
0		 USAID
USD
789,225
6,853
103,734
146,499
77,456
3,483
263,469		 Bill &
Melinda
Gates
USD
2,837,600
56,071
416,591
935,236
131,329
1,086,600
874,167		 IIT004
USD
0
0
136,522
39,924
0
17,303
76,588		 AF0002
USD
0
0
0
0
0
3,748
21,727		 BAY001
USD
0
0
0
0
0
0
0		 CSI001
USD
48,548
0
85
10,485
0
2,811
5,322		 EUN001
USD
0
0
13,642
4,555
0
18,453
56,209		 GCA001IFPRI 001
USD
USD
0
0
0
17,579
0
20,752
0
26,097
0
0
0
9,090
0
26,477		 GCA001IFPRI 001
USD
USD
0
0
0
17,579
0
20,752
0
26,097
0
0
0
9,090
0
26,477		 MSU001 UKRI001
USD
USD
0
0
0
0
30
1,738
1,644
447
0
0
208
546
0
0		 MSU001 UKRI001
USD
USD
0
0
0
0
30
1,738
1,644
447
0
0
208
546
0
0		 Subtotal
USD
3,675,373
80,503
693,094
1,164,887
208,785
1,142,242
1,323,959		 Grand Total
USD
3,682,618
96,278
918,129
1,715,318
311,653
1,142,242
1,323,959
901,354 901,354 1,390,719 6,337,594 270,337 25,475 0 67,251 92,859 0 99,995 1,882 2,731 8,288,843 9,190,197
1,112,565
471,300
5,587
172,056
609,630
241,349		 409,887
91,074
76,580
134,753
0
0		 1,208,118
360,821
7,840
256,940
(1,452)
0		 0
4,626
0
2,154
0
0		 0
0
0
3,255
0
0		 0
0
0
32,032
0
0		 0
0
306
2,850
0
0		 0
80
0
291
0
0		 0
0
0
3,606
0
0		 0
0
0
0
0
0		 0
453
0
7
0
0		 0
0
0
0
0
0		 1,618,005
457,054
84,726
435,888
(1,452)
0		 2,730,570
928,354
90,313
607,944
608,178
241,349
2,612,487 2,612,487 712,294 1,832,267 6,780 3,255 32,032 3,156 371 3,606 0 460 0 2,594,221 5,206,708
3,513,841 3,513,841 2,103,013 8,169,861 277,117 28,730 32,032 70,407 93,230 3,606 99,995 2,342 2,731 10,883,064 14,396,905

The notes on pages 52 to 79 form part of these financial statements.

58

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

3 (b CHARITABLE ACTIVITIES - 2022

Expenditure
Outsourced Research Activities
Project Supplies
Travel
Conference & W/shops
Rentals
Direct staff costs
Institutional Support
Cost directly allocated to activities
General Personnel Costs
Consultancy and other professional services
Depreciation
General expenses and supplies
Forex Losses on revaluations
BOT
Support cost directly allocated to
Total for the period		 RES001
3,858
49,308
64,072
216,804
17,526
10,661
0		 Subtotal
3,858
49,308
64,072
216,804
17,526
10,661
0		 USAID
601,587
21,433
198,425
286,262
122,402
348,699
35,276		 SYN003
0
0
0
0
0
5,995
600		 Bill &
Melinda
Gates
2,053,987
119,446
331,151
697,493
45,584
1,605,926
974,756		 IIT004
0
(8,000)
0
17,753
0
153,275
0		 EUN001
0
0
2,201
1,800
0
0
26,227		 GCA001
0
0
30,012
27,645
16,360
41,514
16,248		 CSI001
23,667
0
3,750
6,023
0
1,805
7,589		 Subtotal
2,679,241
132,879
565,539
1,036,976
184,346
2,157,214
1,060,696		 Grand Total
2,683,099
182,187
629,611
1,253,780
201,872
2,167,875
1,060,696
362,229 362,229 1,614,084 6,595 5,828,343 163,028 30,228 131,779 42,834 7,816,891 8,179,120
781,132
383,119
4,561
36,101
(1,748)
140,766		 781,132
383,119
4,561
36,101
(1,748)
140,766		 302,838
110,373
82,061
434,488
(27,403)
75,547		 0
0
0
0
0
0		 658,439
158,867
13,860
175,760
(2,011)
0		 23,339
0
1,001
64
0
0		 99,421
1,075
306
413
0
0		 18,298
73,855
0
41,751
0
0		 50
0
0
15,298
0
0		 1,102,385
344,170
97,228
667,774
(29,414)
75,547		 1,883,517
727,289
101,789
703,875
(31,162)
216,313
1,343,931 1,343,931 977,904 0 1,004,915 24,404 101,215 133,904 15,348 2,257,690 3,601,621
1,706,160 1,706,160 2,591,988 6,595 6,833,258 187,432 131,443 265,683 58,182 10,074,581 11,780,741

The notes on pages 52 to 79 form part of these financial statements.

59

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

Personnel Costs - Group
Salaries and wages
NI social security costs
Pension costs
Other personnel costs
Personnel costs - Charity
Salaries and wages
NI social security costs
Pension costs
Other personnel costs		 2023
US$
3,760,774
231,636
388,164
292,249
4,672,823
2023
US$
3,219,160
206,701
350,764
277,903
4,054,528		 2022
US$
3,805,470
244,263
407,879
347,863
4,805,475
2022
US$
3,175,373
207,974
338,487
329,559
4,051,393		 2023
£
2,971,065
182,996
306,655
230,881
3,691,597
2023
£
2,543,182
163,297
277,109
219,547
3,203,135		 2022
£
3,155,919
202,570
338,258
288,487
3,985,234
2022
£
2,633,372
172,475
280,711
273,307
3,359,865

The Charity had an average of 46 employees during the year (2022: 46). The Group had an average of 66 employees during the year (2022: 69). The directors consider that key management personnel are the senior management (executive directors). Remuneration for key management personnel for the charity totalled $1,161,281/£917,428.50 (2022:$1,159,426/£1,398,059).

2023 2022
Staff paid over £60,000* No. No.
£60,001 - £70,000 1 1
£70,001 - £80,000 0 0
£80,001 - £90,000 0 0
£90,001 - £100,000 0 0
£100,001 - £110,000 0 1
£110,001 - £120,000 2 1
£120,001 - £130,000 0 1
£130,001 - £140,000 0 0
£140,001 - £150,000 6 0
£150,001 - £160,000 2 4
£160,001 - £170,000 1 2
£170,001 - £180,000 1 2
£180,001 - £190,000 1 2
£190,001 - £200,000 0 0
£200,001 - £210,000 0 0
£210,001 - £220,000 0 0
£220,001 - £230,000 0 0
£230,001 - £240,000 1 1

*Comprising all forms of consideration paid in exchange for the service rendered by employees including remuneration, salary, benefits, employer’s pension contributions and any termination payments made.

Contributions in the year for the above higher-paid charity employees to defined contribution pension scheme totalled $107,739/ £85,114 (2022: US$103,682 / £124,986).

The number of the above higher-paid employees to whom retirement benefits are accruing under defined contribution pension schemes for the charity totalled 15 (2022:13).

The notes on pages 52 to 79 form part of these financial statements.

60

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

4
2023
US$
2022
US$
618,490
603,708
176
5,304
106,103
49,155
32,819
13,637
96,069
52,877
156,410
142,926
1,010,067
867,607
928,353
727,289
81,714
140,318
1,010,067
867,607
5
2023
US$
2022
US$
Office and computer supplies
265,525
393,948
Communication
258,594
327,525
Vehicle expenses
42,971
47,566
Other office expenses
388,399
271,327
955,489
1,040,366
Consultants’ fees
CONSULTANTS’ AND PROFESSIONAL
GENERAL EXPENSES AND SUPPLIES
Group
External audit (Various - See Note 6)
Consultants’
travel,
accommodation,
and reimbursements
Group
Trading expenses – subsidiaries
Internal audit (KKCO)
Legal fees
Charitable expenditure (note 3)
Allocated:
Taxation and secretarial services		 2023
US$
2022
US$
585,846
539,645
176
5,304
78,194
16,543
32,819
13,637
74,908
22,754
156,410
129,406
928,353
727,289
928,353
727,289
0
0
928,353
727,289
2023
US$
2022
US$
290,738
243,663
272,039
93,939
47,566
41,216
131,034
112,088
741,377
490,906
Charity
Charity		 2023
US$
2022
US$
585,846
539,645
176
5,304
78,194
16,543
32,819
13,637
74,908
22,754
156,410
129,406
928,353
727,289
928,353
727,289
0
0
928,353
727,289
2023
US$
2022
US$
290,738
243,663
272,039
93,939
47,566
41,216
131,034
112,088
741,377
490,906
Charity
Charity
490,906

The notes on pages 52 to 79 form part of these financial statements.

61

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

6 NET INCOME / (EXPENDITURE) FOR THE YEAR

NET INCOME / (EXPENDITURE) FOR THE YEAR
This is stated after charging: Group Charity
2023 2022 2023 2022
US$ US$ US$ US$
Depreciation - Property, plant, and equipment (PP&E) 385,591 478,959 90,312 101,789
Amortisation 4,776 4,776 0 0
External Audit - Charity (Crowe – UK) 36,898 33,275 36,898 33,275
External Audit - Charity (Crowe Erastus & Co.) 41,296 33,988 41,296 33,988
External Audit – Agridrive Nigeria Ltd (Grant Thornton 5,643 5,957 0 0
– Nigeria)
External Audit – Eco basics Nigeria Ltd (MacTheo 8,706 11,757 0 0
Consultants – Nigeria)
External Audit – QBS Kenya Ltd (BDO Kenya / BDO 13,542 16,165 0 0
ZIM & BDO RSA)
Fees payable to company auditors for other services 2,800 2,800 2,800 2,800
Operating lease costs 149,840 107,353 122,075 107,353

AATF entered into a hosting agreement with International Livestock Research Institute (ILRI). This agreement includes among other things a lease arrangement for office space by AATF payable on a quarterly basis. The management has determined that it may continue leasing this office space for the next six years up until 31 December 2028. Therefore, the total of future minimum lease payments made under non-cancellable operating leases for the next year is US$ 153,040 (2022: US$106,144). The total of future minimum lease payments made under optional operating leases for the next two to five years is US$ 832,470 (2022: US$577,377). The total of future minimum lease payments made under optional operating leases for the period after five years is US$0 (2022:US$192,832).

7 TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

The Board of Trustees (BOT) of the Foundation were paid honoraria of US$80,188 (2022:US$59,160) for their role in meetings and other corporate activities of the Foundation. Indemnity insurance for trustees that was paid during the year amounted US$10,045 (2022:US$9,144). Other board meeting expenses were non-BOT per diem US$ 34,874 (2022: US$20,447) and other board expenses 126,357 (2022: US$145,760). During the year, board meetings were held physically that necessitated travels. The costs associated to these travels amounted to US$97,262 which are included in other board expenses.

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2022: Nil).

The charity has advanced loans to senior management personnel, the balance outstanding at the yearend totalled US$ 47,162 for 3 employees (2022: US$26,365 for 3 employees). Such loans are interest During the year remuneration was paid to C Kanangire, Trustee, of $301,227 (2022: $287,073) in their capacity as Executive Director of the Charity, as permitted by the provisions in the Charity's Governing During the year advances were paid to C Kanangire of $54,352 relating to advances in accordance with his role as Executive Director at the Charity. During the year $59,626 was repaid by the C Kanangire and the year-end balance was $15,996 (2022: $21,269)

No one party has ultimate control over the charity, and all transactions are on an arm’s length basis.

We have disclosed in detail the subsidiaries under charity’s control as at 31 December 2023 in note 19 “Investment in Subsidiaries’’.

The notes on pages 52 to 79 form part of these financial statements.

62

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

8(a) INTANGIBLE ASSETS - GROUP
Cost
At 1 January 2023
Additions
Foreign exchange movement
At 31 December 2023
Amortisation
At 1 January 2023
Charge for the year
Foreign exchange movement
At 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022
8(a) INTANGIBLE ASSETS - CHARITY
Cost
At 1 January 2023
Additions
At 31 December 2023
Amortisation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022		 Computer
software
US$
85,070
0
(16,848)		 Total
US$
85,070
0
(16,848)
68,222 68,222
58,522
4,776
(4,913)		 58,522
4,776
(4,913)
58,385 58,385
9,837 9,837
26,548 26,548
Computer
software
US$
51,524
0		 Total
US$
51,524
0
51,524 51,524
51,524
0		 51,524
0
51,524 51,524
0 0
0 0

The notes on pages 52 to 79 form part of these financial statements.

63

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

8(b) TANGIBLE ASSETS - GROUP

Cost
At 1 January 2023
Additions
Disposals
Translation difference
As at 31 Dec 2023
Depreciation
At 1 January 2023
Charge for the year
Disposals
Translation difference
As at 31 Dec 2023
Net book value
As at 31 Dec 2023
As at 31 Dec 2022		 Motor
Vehicles,
trailers,
m/bikes,
US$
1,253,434
2,666
(39,277)
(259,426)
957,397
758,405
148,115
(43,347)
(108,687)
754,486
202,911
495,028		 Furniture
and office
equipment
US$
349,070
5,388
(11,359)
(53,924)		 Computers
and related
equipment
US$
235,085
35,444
(11,953)
(18,438)		 Tractors
US$
1,562,664
4,361
(548,069)		 Farm
Equipment
and
Implement
US$
428,036
2,203
(36,883)
(216,328)		 Work in
Progress
(WIP)
US$
124,066
171,861
0
0		 Buildings
US$
337,908
0
(71,940)		 Leasehold
Improvements
US$
27,411
0
0
(13,853)		 Plant &
machinery
US$
0
2,701
0
0		 Temporary
Buildings
US$
0
7,613
0
0		 Land
US$
13,488
0
0
(6,817)		 Total
US$
4,331,160
232,238
(99,472)
(1,188,797)
289,175 240,137 1,018,955 177,028 295,927 0
265,968		 13,558 2,701 7,613 6,671 3,275,129
259,264
47,485
(11,359)
(36,865)		 198,876
24,126
(11,880)
(10,047)		 459,157
120,000
0
(194,058)		 296,771
40,514
(21,826)
(162,573)		 0
0
0
0		 0
0
0
0		 21,363
3,932
0
(12,017)		 0
296
0
(92)		 0
1,122
0
(348)		 0
0
0
0		 1,993,836
385,591
(88,412)
(524,687)
258,526 201,075 385,099 152,886 0 0 13,278 204 774 0 1,766,328
30,649 -
39,062		 633,856 24,142 295,927 -
265,968		 279 2,497 6,839 6,671 1,508,801
89,807 36,208 0
1,103,508		 131,265 0
124,065		 337,908 0
6,048		 0
0		 0
0		 13,488 2,337,325

8(b) TANGIBLE ASSETS - CHARITY

Cost
At 1 January 2023
Additions
Disposals
As at 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Disposals
As at 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022		 Motor
vehicles,
US$
700,311
0
0
700,311
516,599
59,646
0
576,245
124,066
183,712		 Furniture
& office
US$
163,591
0
(10,340)		 Computers &
related
US$
184,996
23,333
(5,727)		 Total
US$
1,048,898
23,333
(16,067)
153,251 202,602 1,056,164
133,541
13,638
(10,340)		 168,669
17,028
(5,727)		 818,809
90,312
(16,067)
893,054
163,110
230,089
136,839 179,970
16,412 22,632
30,050 16,327

The notes on pages 52 to 79 form part of these financial statements.

64

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

8(c) BIOLOGICAL ASSETS

BIOLOGICAL ASSETS
Cost
At 1 January 202
Additions
Disposal
(Decreases) due to harvest
As at 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Disposals
As at 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022		 Group
US$
83,485
90,840
(65,711)
(17,773)
90,841
0
0
0
0
90,841
83,485		 Charity
US$
0
0
0
0
0
0
0
0
0
0

The biological assets reported in this note relates to hybrid maize seeds cultivated by the charity’s subsidiary, QBS Kenya Limited. Biological assets are measured at their fair value less costs to sell.

The notes on pages 52 to 79 form part of these financial statements.

65

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

9 GRANT DEBTORS / (UNEXPENDED GRANTS)

Donor
USAID
BMGF-TELA, Hybrid Rice, OFAB, QBS
IITA
PADCA
PASSTA
CSI
MSU001
IFPRI 001
UKRI001
Bayer
Africa Rice
Commonwealth for Science
EU - REA
Total – Charity
BMGF – (Subsidiaries)
Total – Group
 Grant
Debtors
brought
forward
01.01.2023
US$ 233,521
0
104,068
0
(3,403)
0
0
0
0
0
0
0
9,006
343,192
0
343,192
 Unexpended
grants
brought
forward
01.01.2023
US$ 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 Income
Recognized
US$ 2,027,916
6,444,712
1,054,594
45,254
0
62,632
2,281
99,995
2,731
32,032
28,729
0
115,700		 Bank
Receipts
US$ 796,969
7,675,579
1,051,720
45,254
0
62,632
0
0
0
0
20,000
0
124,706
9,776,860
0
9,776,860		 Transfers
198
2,049
52,961
0
(3,403)
0
0
0
0
0
0
0
0
51,805
0
0		 Adjustments
0
601,386
0
0
0
0
0
0
0
0
0
0
0
0
(601,386)
0		 Grant
Debtors
carried
forward
31.12.202
3
US$ 1,464,467
640,851
53,981
0
0
0
2,281
99,995
2,731
32,032
8,729
0
0		 Unexpended
grants
carried
forward
31.12.2023
US$ 0
0
0
0
0
0
0
0
0
0
0
0
0
9,916,576 2,305,067 0
1,236,552 (635,166) 0
11,153,128 1,669,901 0

AATF disbursed US$ 1,236,552/- to subsidiaries during the year. The subsidiaries spent a total of US$ 601,386 with US$ 635,166 remaining unspent. The balance which was a payable to AATF and a receivable from subsidiaries was netted off and reported as zero in consolidated balancesheet.

10 OTHER DEBTORS

Staff loans
Advances for travel and expenses
ILRI
AIARC current account
Collaborating Organisations
Trade debtors
USDA - FAS
Related parties
Harvest Cool
Klein Karoo
Credit cards
Other receivables
VAT
Prepayments
Total other debtors		 2023
2022
US$
US$
249,900
83,293
104,028
249,539
82,387
137,082
34,937
0
0
9,452
557,111
629,971
358,742
315,408
0
0
93,891
40,125
40,124
21,600
0
147,690
160,717
0
672
173,909
290,163
1,864,320
1,916,421
Group		 2023
2022
US$
US$
237,633
65,726
103,032
249,539
82,386
137,082
34,937
0
77,252
157,995
0
0
358,742
315,408
210,447
223,474
93,891
40,124
40,124
21,600
0
33,412
35,456
0
0
0
9,452
1,293,456
1,234,256
Charity		 2023
2022
US$
US$
237,633
65,726
103,032
249,539
82,386
137,082
34,937
0
77,252
157,995
0
0
358,742
315,408
210,447
223,474
93,891
40,124
40,124
21,600
0
33,412
35,456
0
0
0
9,452
1,293,456
1,234,256
Charity
1,864,320 1,234,256

Loans are provided to staff, after approval in accordance with AATF’s policies, as part of AATF’s staff retention strategy, as such incentives are provided by other similar local organisations.

The notes on pages 52 to 79 form part of these financial statements.

66

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

11 ANALYSIS OF CREDITORS
FALLING DUE WITHIN ONE YEAR
Accrued leave
Accrued services
Other creditors
Trade creditors
Seed Revolving Fund
AIARC current account
Collaborating Organisations
Credit cards
Payroll tax
Social Security and other taxes
VAT		 2023
US$
2022
US$
205,384
190,877
177,372
120,231
221,417
202,284
72,093
151,345
5,600
24,301
0
142,953
0
20,706
0
7,749
0
46,393
687,295
566,570
43,910
44,363
1,413,071
1,517,772
Group		 2023
US$
2022
US$
205,384
190,877
164,118
100,612
10,787
792
367
32,270
5,600
24,301
0
142,953
0
20,706
0
7,748
0
46,393
672,164
561,569
0
0
1,058,420
1,128,221
Charity		 2023
US$
2022
US$
205,384
190,877
164,118
100,612
10,787
792
367
32,270
5,600
24,301
0
142,953
0
20,706
0
7,748
0
46,393
672,164
561,569
0
0
1,058,420
1,128,221
Charity
1,128,221

The notes on pages 52 to 79 form part of these financial statements.

67

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

12 (a) MOVEMENT IN FUNDS

Fund name
Unrestricted:
Rockefeller
DFID
Reserves Account
Sub-total Unrestricted - Charity
Restricted:
USAID
Bill and Melinda Gates
Foundation
IITA
CIMMYT
SFSA
AGRA
Africa Harvest
NEPAD/FARA
Kirkhouse Trust
EU-REA
FOCAC
GCA
CSI
BAYER
PADCA
MSU001
IFPRI 001
UKRI001
Sub-total Restricted - Charity
Total Charity
Unrestricted
Subsidiaries’ Activities –
Agridrive Ltd, QBS Ltd &
Ecobasics
Total funds		 Fund
balances
brought
forward
1.1.2023
US$
265,688
962,550
4,814,268
~~0~~
6,042,506
131,373
8,184,630
(16,753)
(2)
32,808
(2,249)
89,076
17,083
12,824
(304)
27,044
0
0
0
0
0
0
0
8,475,530
14,518,036
6,600,615
21,118,651		 Incoming
resources
US$
0
0
2,741,811		 Outgoing
resources
US$
0
0
(3,513,841)		 Other
gains and
(losses)
US$**
0
0
0		 Transfers
US$*
0
0
0
0
0
(601,386)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(601,386)
0
601,386
0		 Fund
balances
carried
forward
31.12.2023
US$
265,688
962,550
4,042,238
2,741,811 (3,513,841) 0 ~~0~~
5,270,476
2,027,916
6,444,712
1,054,594
0
0
28,729
115,700
62,632
32,032
45,254
2,281
99,995
2,731		 (2,103,013)
(8,169,861)
(277,117)
0
(28,730)
(93,230)
(3,606)
(70,407)
(32,032)
0
(2,342)
(99,995)
(2,731)		 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 56,276
5,858,095
760,724
(2)
32,808
(2,249)
89,075
17,083
12,824
22,166
27,044
(3,606)
(7,775)
0
45,254
(61)
0
0
9,916,576 (10,883,064) 0 6,907,656
12,658,387 (14,396,905) 0 12,178,132
1,372,156 (3,120,771) (829,747) 4,623,639
14,030,543 (17,517,676) (829,747) 16,801,771

** Refers to translations of foreign operations and movement in minority interest balances.

The notes on pages 52 to 79 form part of these financial statements.

68

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

12 (a) MOVEMENT IN FUNDS

Fund name
Unrestricted:
Rockefeller
DFID
Reserves Account
Sub-total Unrestricted - Charity
Restricted:
USAID
Bill and Melinda Gates
Foundation
IITA
CIMMYT
SFSA
AGRA
SNV Netherlands
Africa Harvest
NEPAD/FARA
Kirkhouse Trust
EU-REA
FOCAC
Sub-total Restricted - Charity
Total Charity
Unrestricted
Subsidiaries’ Activities –
Agridrive Ltd, QBS Ltd &
Ecobasics
Total funds		 Fund
balances
brought
forward
1.1.2022
(Restated)
US$
265,688
962,550
4,651,466
5,879,704
485,719
14,100,441
70,401
(2)
18,286
(2,249)
(115,627)
89,076
17,083
12,824
69,550
27,044
14,772,546
20,652,250
1,502,084
22,154,334		 Incoming
resources
US$
0
0
1,933,593		 Outgoing
resources
US$
0
0
(1,706,160)		 Other
gains and
losses		 Transfers
US$*
(64,631)		 Fund
balances
carried
forward
31.12.2022
US$
265,688
962,550
4,814,268
1,933,593 (1,706,160) (64,631) ~~0~~
6,042,506
2,237,642
5,626,560
100,278
344,982
50,996
61,589		 (2,591,988)
(6,833,258)
(187,432)
(330,460)
(131,443)		 (4,709,113)
64,631		 131,373
8,184,630
(16,753)
(2)
32,808
(2,249)
0
89,076
17,083
12,824
(304)
27,044
8,422,047 (10,074,581) (4,644,482) ~~0~~
8,475,530
10,355,640 (11,780,741) 0 (4,709,113) 14,518,036
1,185,737 (2,493,312) 1,696,993 4,709,113 6,600,615
11,541,377 (14,274,053) 1,696,993 0 21,118,651

*Transfer of US$ 4,709,113 relates to reconciliation of Bill and Melinda Gates closing fund balance. When BMGF funds were subgranted to subsidiaries, the expense was recognized under 'Unrestricted' reserve activities. During the year, accumulated expenses that were initially recognized under unrestricted reserve activities were transfered to BMFG. This reduced BMGF fund balance held as payable to BMGF.

** Transfer of US$ 64,631 relates to expense that was absorbed by general fund, transfering the excess expenditure to general fund

The notes on pages 52 to 79 form part of these financial statements.

69

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

12 MOVEMENT IN FUNDS (CONTINUED)

Some restricted funds are in a deficit position due to the timing of recognition of grant income under the SORP. In the short term the projects funded by these restricted grants are pre-financed from general funds for cash flow purposes, the project expenditure is then matched with further restricted grants received since the year end when such expenditure meets the criteria of the related grant funding.

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees. Restricted funds can only be used for the projects for which they are designated. Details are as given below:

The notes on pages 52 to 79 form part of these financial statements.

70

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Intangible assets
Deferred tax asset
Biological assets
Grant debtors
Other debtors
Cash at bank and in hand
Inventories
Deferred expense
Current tax payable
Creditors due within one year
Capital grant
Deferred tax liability
Charity
Tangible fixed assets
Investment in subsidiaries
Loans to group companies
Grant debtors
Other debtors
Cash at bank and in hand
Creditors due within one year		 Restricted
US$
0
0
0
0
1,669,901
452,633
4,785,122
0
0
0
0
0
0		 Unrestricted
US$
1,508,801
9,837
0
90,841
0
1,411,687
7,973,442
754,240
73,349
(10,983)
(1,413,071)
(370,236)
(133,721)
9,894,186
163,110
36,719
845,707
0
840,823
7,373,045
(1,058,420)
8,200,984		 Totals
2023
US$
1,508,801
9,837
0
90,841
1,669,901
1,864,320
12,758,564
754,240
73,349
(10,983)
(1,413,071)
(370,236)
(133,721)		 Restricted
US$
0
0
0
0
343,192
492,613
7,660,431
0
0
0
(20,706)
0
0		 Unrestricted
US$
2,337,325
26,548
0
83,485
0
1,423,808
9,244,827
1,040,611
62,884
(8,605)
(1,497,066)
0
(70,696)
12,643,121
230,089
36,719
1,179,702
0
741,643
8,937,510
(1,107,515)
10,018,148		 Totals
2022
US$
2,337,325
26,548
0
83,485
343,192
1,916,421
16,905,258
1,040,611
62,884
(8,605)
(1,517,772)
0
(70,696)
6,907,656 16,801,842 8,475,530 21,118,651
0
0
0
1,669,901
452,633
4,785,122
0		 163,110
36,719
845,707
1,669,901
1,293,455
12,158,167
(1,058,420)		 0
0
0
343,192
492,613
7,660,431
(20,706)		 230,089
36,719
1,179,702
343,192
1,234,256
16,597,941
(1,128,221)
6,907,656 15,108,639 8,475,530 18,493,678

The notes on pages 52 to 79 form part of these financial statements.

71

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

14 NET CASH GENERATED FROM OPERATING ACTIVITIES

Reconciliation of net income for the year to
net cash generated from operations
(a) Net income for the year
Adjustments for:
Depreciation
Amortisation
Gain on disposal of equipment
Interest received
Restatement
Movement in deferred grant
Movement in capital grant
Working capital changes:
Decrease / (Increase) in grants debtors
Increase / (Decrease) in grants creditors
(Increase) / decrease in other debtors
Increase / (Decrease) in other creditors
Increase in deferred tax liability
Decrease / (Increase) in inventories
Net cash provided by operating activities
Analysis of funds: Group
Cash
Short term deposits
Analysis of funds: Charity
Cash
Short term deposits		 2023
2022
US$
US$
(3,487,133)
(2,732,636)
385,591
478,959
4,776
6,994
(20,102)
(7,603)
(9,698)
(13,094)
0
(214,954)
(10,465)
(62,884)
0
(1,277,933)
(1,326,709)
(505,730)
370,236
(628,302)
52,101
(592,835)
(104,701)
58,117
63,025
0
286,371
(279,717)
(3,796,708)
(5,771,618)
At 1
January
Cashflow
2022
2022
US$
US$
5,704,519
(2,576,889)
14,224,179
(446,551)
4,818,410
(1,948,219)
14,224,179
(496,429)
Group		 2023
2022
US$
US$
(3,487,133)
(2,732,636)
385,591
478,959
4,776
6,994
(20,102)
(7,603)
(9,698)
(13,094)
0
(214,954)
(10,465)
(62,884)
0
(1,277,933)
(1,326,709)
(505,730)
370,236
(628,302)
52,101
(592,835)
(104,701)
58,117
63,025
0
286,371
(279,717)
(3,796,708)
(5,771,618)
At 1
January
Cashflow
2022
2022
US$
US$
5,704,519
(2,576,889)
14,224,179
(446,551)
4,818,410
(1,948,219)
14,224,179
(496,429)
Group		 2023
2022
US$
US$
(3,385,038)
(3,084,018)
90,312
101,789
0
0
(395)
(1,362)
(9,698)
(13,094)
0
0
0
0
0
0
(1,326,709)
(505,730)
0
0
(59,200)
34,211
(69,801)
(36,986)
0
0
0
0
(4,760,529)
(3,505,190)
At 31
December
Cashflow
At 31
December
2022
2023
2023
US$
US$
US$
3,127,630
(788,575)
2,339,055
13,777,628
(3,358,119)
10,419,509
2,870,191
(962,798)
1,907,393
13,727,750
(3,476,976)
10,250,774
Charity
(3,796,708) (5,771,618) (4,760,529)
At 1
January
2022
US$
5,704,519
14,224,179
4,818,410
14,224,179		 Cashflow
2022
US$
(2,576,889)
(446,551)
(1,948,219)
(496,429)		 At 31
December
2022
US$
3,127,630
13,777,628
2,870,191
13,727,750

The notes on pages 52 to 79 form part of these financial statements.

72

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

15 INCORPORATION/REGISTRATION

The Foundation is incorporated and registered as a private company limited by guarantee and not having share capital. It has been registered in the United Kingdom (January 2003) and in Kenya (April 2003), respectively. It was registered as a charity in England and Wales in January 2005. It was granted host country status by the Government of Kenya in June 2005.

16 GOVERNANCE COSTS
Honoraria
Meeting expenses
Consulting and other services (note 3)		 2023
US$
80,118
161,231
0		 2022
US$
59,160
157,152
0
241,349 216,312

17 PENSION COMMITMENTS

The assets of the defined contribution pension scheme are held separately from those of the company in a range of funds provided and administered by an independent plan provider. Contributions of US$ 338,487/- (2022: US$ 338,487/-) were charged to the statement of financial activities during the financial year as they became payable in accordance with the rules of the scheme. There are no outstanding contributions at the current year-end (2022: US$ nil).

18 FINANCIAL INSTRUMENTS
FINANCIAL ASSETS
Cash and receivables
FINANCIAL LIABILITIES
Financial liabilities measured at
amortised cost		 Group
Consolidate
2023
US$
16,366,134
16,366,134
(1,413,071)
(1,413,071)		 Group
Consolidate
2022
US$
19,227,755		 Charity
2023
US$
15,121,524		 Charity
2022
US$
18,175,389
19,227,755 15,121,524 18,175,389
(1,517,772) (1,058,420) (1,128,221)
(1,517,772) (1,058,420) (1,128,221)

Financial assets measured at amortised cost comprise cash and cash equivalents, trade debtors and other receivables.

Financial liabilities measured at amortised cost comprise trade and other creditors.

The notes on pages 52 to 79 form part of these financial statements.

73

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

19 The following table lists the entities which are controlled by the group, either directly or indirectly through subsidiaries. Company

Company
ECOBasic Seeds Company Limited
Agridrive Nigeria Limited
QBS Seeds Company Limited		 Carrying
amount
2023
US$
2,777
9,779
24,163		 Carrying
amount
2022
US$
2,777
9,779
24,163
36,719 36,719

The above amount relates to share capital held by AATF in QBS (US$ 9,779), Agridrive (US$ 2,777) and ECOBasic Seeds Company (US$ 24,163).

Summarised consolidated statement of financial position as at 31 December.

Assets
Non-current assets
Current assets
Total Assets
Liabilities
Non-current liabilities
Current liabilities
Total liabilities
Total net asset
(liabilities)
Carrying amount of
non-controlling interest		 2023
2022
US$
US$
1,093,171
1,151,853
1,637,779
2,065,352
2,730,950
3,217,205
689,946
221,712
213,756
218,109
903,702
439,821
1,827,248
2,777,384
71
796
Qualibasic Seed
Company Limited		 2023
2022
US$
US$
283,400
695,022
125,076
93,961
408,476
788,983
708,741
634,824
181,570
259,360
890,311
894,184
(481,835)
(105,201)
0
0
Agridrive Nigeria
Limited		 2023
2022
US$
US$
283,400
695,022
125,076
93,961
408,476
788,983
708,741
634,824
181,570
259,360
890,311
894,184
(481,835)
(105,201)
0
0
Agridrive Nigeria
Limited		 2023
2022
US$
US$
332,682
366,991
446,441
187,020
779,123
554,011
68,574
22,653
672,111
719,825
740,685
742,478
38,438
(188,467)
0
0
ECOBasic Seeds
Company Ltd		 2023
2022
US$
US$
332,682
366,991
446,441
187,020
779,123
554,011
68,574
22,653
672,111
719,825
740,685
742,478
38,438
(188,467)
0
0
ECOBasic Seeds
Company Ltd		 2023
US$
1,709,253
2,213,866
2,209,296
2,346,333
US$
2022
Total		 2023
US$
1,709,253
2,213,866
2,209,296
2,346,333
US$
2022
Total
408,476 788,983 779,123 554,011 3,918,549 4,560,199
708,741
181,570		 634,824
259,360		 68,574
672,111		 22,653
719,825		 1,467,261
1,067,437		 879,189
1,197,294
890,311 894,184 740,685 742,478 2,534,698 2,076,483
(481,835) (105,201) 38,438 (188,467) 1,383,851 2,483,716
0 0 0 0 71 796

Summarised statement of profit or loss and other comprehensive income for the year ended 31 December

Revenue
Other income and
expenses
Total profit / loss
(Loss) / profit after tax
Other comprehensive
Profit / loss before tax
Tax expense		 1,396,165
717,812
-
247,075
(398,723)
964,887
(39,807)
28,998
(438,530)
993,885
(125,856)
929,809
(564,386)
1,923,694
2023
2022
US$
US$
Qualibasic Seed
Company Limited		 US$
361,219
325,902
24,622
(700,605)
(606,283)
(374,703)
0
0
(606,283)
(374,703)
0
0
(606,283)
(374,703)
2022
US$
2023
Agridrive Nigeria
Limited		 US$
361,219
325,902
24,622
(700,605)
(606,283)
(374,703)
0
0
(606,283)
(374,703)
0
0
(606,283)
(374,703)
2022
US$
2023
Agridrive Nigeria
Limited		 US$
US$
22,654
1,551
919,594
241
290,010
1,792
(99,112)
(32,678)
190,898
(30,886)
0
190,898
(30,886)
2023
2022
ECOBasic Seeds
Company Ltd		 US$
US$
22,654
1,551
919,594
241
290,010
1,792
(99,112)
(32,678)
190,898
(30,886)
0
190,898
(30,886)
2023
2022
ECOBasic Seeds
Company Ltd		 2023
US$
1,780,038
1,045,265
944,215
(453,289)
(714,996)
591,976
(138,919)
(3,680)
(853,915)
588,296
(125,856)
929,809
2022
US$
Total		 2023
US$
1,780,038
1,045,265
944,215
(453,289)
(714,996)
591,976
(138,919)
(3,680)
(853,915)
588,296
(125,856)
929,809
2022
US$
Total
(606,283) (374,703) 190,898 (30,886) (979,771) 1,518,105

The notes on pages 52 to 79 form part of these financial statements.

74

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

Summarised statement of cash flows for the year ended 31 December

Cashflows from operating activities
Cashflows from investing activities
Cashflows from financing activities
Net increase / (decrease) in cash
and cash equivalents		 2023
2022
US$
US$
194,791
1,498,753
27,022
(387,416)
64,788
(867,368)
286,601
243,969
Qualibasic Seed
Company Limited		 2023
2022
US$
US$
(292,096)
(67,412)
(13,044)
14,037
312,872
65,639
-
7,732
12,264
-
Agridrive Nigeria
Limited		 2023
2022
US$
US$
444,998
(611,678)
(332,330)
(338,145)
83,228
977,819
195,896
27,996
ECOBasic Seeds
Company Ltd		 2023
2022
US$
347,692
819,663
(318,352)
(711,524)
460,889
176,090
490,230
284,229
Total		 2023
2022
US$
347,692
819,663
(318,352)
(711,524)
460,889
176,090
490,230
284,229
Total
195,896 284,229

Subsidiaries with material non-controlling interests

The following information is provided for subsidiaries with non-controlling interests which are material to the reporting company. The summarised financial information is provided prior to intercompany eliminations.

Subsidiary % Ownership interest
controlling interest		 held by non-
2023 2022
Agridrive Limited 1% 1%
Qualibasic Seed Company Limited 1% 1%
Ecobasic Seed Company Limited 0% 0%

The notes on pages 52 to 79 form part of these financial statements.

75

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

20 GRANTS TO SUBGRANTEES

COWPEA
INERA - Burkina Faso
IAR - Zaria, Nigeria
CSIRO - Australia
CSIR - SARI, Ghana
MSU, USA
Donald Danforth
NASC, Nigeria
NAERLS, Nigeria
IITA
Eco Basic
Total COWPEA
SEEDS2B
DARS
Total SEEDS2B
POTATO
CIP, Kenya
Total POTATO
OFAB
OFAB Kenya, ISAAA
OFAB Nigeria, NABDA
OFAB Tanzania, COSTECH
OFAB Ethiopia, EIAR
OFAB Burkina Faso, INERA
OFAB Ghana, CSIR
EIAR, Ethiopia
NCSTFDA Mali
RAB, Rwanda
KUBICO
IIAM
CREAF Buk
UNCST, Uganda
Total OFAB		 2023
2022
US$
US$
108,137
82,637
131,079
0
113,500
200,066
87,991
124,223
56,000
84,000
324,670
0
17,985
0
27,665
105,456
30,000
0
0
0
897,027
-
596,382
0
3,858
0
3,858
0
0
0
0
150,000
150,000
200,000
200,000
0
75,000
75,000
0
120,000
60,000
100,000
100,000
107,887
150,000
50,000
25,000
100,000
50,000
324,925
74,925
69,823
50,000
0
60,000
0
(12,500)
1,297,635
982,425
Group		 2023
2022
US$
US$
108,137
82,637
131,079
0
113,500
200,066
87,991
124,223
56,000
84,000
324,670
0
17,985
0
27,665
105,456
30,000
0
80,000
0
977,027
596,382
0
3,858
0
3,858
0
0
0
0
150,000
150,000
200,000
200,000
0
75,000
75,000
0
120,000
60,000
100,000
100,000
107,887
150,000
50,000
25,000
100,000
50,000
324,925
74,925
69,823
50,000
0
60,000
0
(12,500)
1,297,635
982,425
Company		 2023
2022
US$
US$
108,137
82,637
131,079
0
113,500
200,066
87,991
124,223
56,000
84,000
324,670
0
17,985
0
27,665
105,456
30,000
0
80,000
0
977,027
596,382
0
3,858
0
3,858
0
0
0
0
150,000
150,000
200,000
200,000
0
75,000
75,000
0
120,000
60,000
100,000
100,000
107,887
150,000
50,000
25,000
100,000
50,000
324,925
74,925
69,823
50,000
0
60,000
0
(12,500)
1,297,635
982,425
Company
596,382
3,858
3,858
0
0
150,000
200,000
75,000
0
60,000
100,000
150,000
25,000
50,000
74,925
50,000
60,000
(12,500)
982,425

The notes on pages 52 to 79 form part of these financial statements.

76

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

20 GRANTS TO SUBGRANTEES (CONTINUED)

TELA
KALRO, Kenya
CIMMYT, Colombia
IIAM
IAR NIGERIA
Bayer, USA
EIAR, Ethiopia
Ecobasic
Total TELA
IPND
CRI, Ghana
NCRI, Nigeria
NaCRRI, Uganda
D. Danford
Total IPND
IITA, Nigeria
QBS
QBS Company Kenya
QBS from AATF to QBS
Total QBS
Total Sub-grants		 2023
2022
US$
US$
0
98,936
538,463
508,561
151,447
67,794
3,450
190,091
625,000
0
118,798
156,860
0
0
1,437,158
-
1,022,242
0
2,000
0
37,840
0
6,786
0
(18,435)
0
28,191
50,000
50,000
0
0
0
0
0
0
3,681,820
#REF!
2,633,098
Group		 2023
2022
US$
US$
0
98,936
538,463
508,561
151,447
67,794
3,450
190,091
625,000
0
118,798
156,860
0
0
1,437,158
-
1,022,242
0
2,000
0
37,840
0
6,786
0
(18,435)
0
28,191
50,000
50,000
0
0
0
0
0
0
3,681,820
#REF!
2,633,098
Group		 2023
2022
US$
US$
0
98,936
538,463
508,561
151,447
67,794
3,450
190,091
625,000
0
118,798
156,860
53,882
0
-
1,491,040
1,022,242
0
2,000
0
37,840
0
6,786
0
(18,435)
0
28,191
50,000
50,000
200,000
450,000
902,670
1,210,275
1,102,670
1,660,275
#REF!
4,918,372
#REF!
4,343,373
Company
1,437,158 -
1,022,242
0
0
0
0		 2,000
37,840
6,786
(18,435)
0 28,191
50,000
0
0		 50,000
0
0
0 0
3,681,820 #REF!
2,633,098

The notes on pages 52 to 79 form part of these financial statements.

77

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

21 POST BALANCE SHEET EVENTS

There are no post-balance sheet events to be reported in the current reporting period.

22 DEFERRED GRANT

Deferred income relates to income granted by BMGF through the Foundation to fund activities of its subsidiary and also by CYMT, QBS Kenya Ltd. The grant is recognised as grant income when expenses relating to it have been incurred. The amount in deferred grant relates to the portion of funds sub-granted but not yet expended as at 31 December 2023. Deferred grant related to Foundation is offset against receivable from subsidiaries. The reported balance is balance related to CYMT that does not relate to

Opening balance
Grant disbursed
Expenses incurred against the
Assets purchased from the grant
Exchange differences
Offset - amount receivable from
shareholder		 2023
2022
US$
US$
0
628,302
1,406,789
450,000
(703,390)
(1,066,886)
0
(11,416)
302,003
0
(635,166)
0
370,236
0
Group		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Charity		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Charity
0 0

23 INVENTORIES

Inventory items are made up of the following:

Packaging materials
Hybrid maize
Inventory - fertilisers
Inventory - herbicides
Inventory - insecticides
Inventory other (chemicals)		 2023
2022
US$
US$
13,012
32,714
87,748
34,067
4,429
14,008
2,388
6,072
0
681
646,663
953,069
754,240
1,040,611
Group		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Charity		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Charity
0 0

24 RELATED PARTIES

Related party balances Receivables - Related parties

Agridrive Nigeria Limited
Qualibasic Seed Company
ECOBasicSeeds		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
Group		 2023
2022
US$
US$
155,033
189,721
36,389
24,353
19,025
9,400
210,447
223,474
Charity		 2023
2022
US$
US$
155,033
189,721
36,389
24,353
19,025
9,400
210,447
223,474
Charity
210,447 223,474

The notes on pages 52 to 79 form part of these financial statements.

78

AFRICAN AGRICULTURAL TECHNOLOGY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2023

25 RELATED PARTIES

RELATED PARTIES
Loans to group companies
Agridrive Nigeria Limited
Provision		 2023
2022
US$
US$
0
0
0
0
0
0
Group		 2023
2022
US$
US$
1,327,542
1,179,702
(481,835)
0
845,707
1,179,702
Charity
0 1,179,702

Related party transactions

Payments to (by) related parties (including sub-grants disbursed / (owing)) – refer to Note 20.

Agridrive Nigeria Limited
Qualibasic Seed Company Limited
ECOBasic Seeds		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
Group		 2023
2022
US$
US$
0
0
0
0
0
0
0
0
Group		 2023
2022
US$
US$
0
234,291
200,000
450,000
1,036,552
1,210,275
1,236,552
1,894,566
Charity		 2023
2022
US$
US$
0
234,291
200,000
450,000
1,036,552
1,210,275
1,236,552
1,894,566
Charity
0 1,894,566

The notes on pages 52 to 79 form part of these financial statements.

79