The last phase of this project demonstrated that tenure risk can significantly reduce the Net Present Value (NPV) of agricultural projects in Africa (see image to the left). These projects can be exposed to delays as a result of disputes that are much more likely in some locations than others. We produced a financial model template (Tenure Risk Tool) that investors can use to assess their exposure to tenure risk at a high level. This model works in conjunction with Landscope, a geospatial tenure risk system developed by TMP Systems.
Our approaches and methods
The last phase of the project built a financial model that businesses can use to assess exposure. The current phase focuses on the cost and effectiveness of mitigation and avoidance actions. We are actively collecting data for this work and need your help. This work will be presented in a series of workshops. If you or a colleague would be interested in attending one of these, please get in contact.
The last phase of the project helps investors and companies to assess their exposure to tenure risk in financial terms.
First, the Tenure Risk Tool (TRT) template model allows businesses to input their own financial details into a pre-configured financial model to calculate NPV exposure under different delay scenarios.
The TRT Report explains how we developed this model through extensive research on tenure-related disputes.
The Brief Overview condenses this report while the Briefs for Sugar and Palm apply out findings to specific sectors.