Launching

Nigeria’s First
Agriculture
ecosystem
provider
BOAT’s strategic blueprint

November 2021
Executive summary
​Market

​Value
propositi
on

​Products

​Sales &
Distributi
on

​Org &
tech
Enablers

​Financial
impact
2
 ​ Nigerian financial services market: trends,
competitive dynamics and opportunities

​Synthesis of BOAT 2022-2026 strategy

Contents
​Deep Dive on BOAT strategic axes

​Financial trajectory – BOAT P&L impacts and main scenarios

​Implementation roadmap: short term priorities and key

milestones for 2022-26

3
Agriculture is a growing market in Nigeria, facing multiple challenges . .
PRELIMINARY

Evolution of Nigeria’s agriculture sector, NGN Trn

​Slow growth between 2015-20 has been driven by lack of access to finance, resource shortages,
violent conflict and outdated systems of agriculture:
 Low level of facilities to provide small-scale farmers with adequate financing
 Low yields per hectare due to shortages in the supply of inputs such as seedlings and fertilizers
 Violent conflict from nomadic herdsmen and bandits affects crop farmers
 Outdated methods of agriculture such as the use of hoes and cutlasses reduce efficiency as these
methods are costly and time consuming
+
​ 7% p.a. 37
34
32
+16% p.a. 29
22 25
19 21
14

2012 2013 2014 2015 2016 2017 2018 2019 2020

​Source: NBS GDP reports 4

. . . with crop farming as the largest and fastest growing portion of
Nigeria’s agricultural chain, accounting for ~90% of agriculture output in
2020
​Crop ​Livest ​Ot
farming ock he
​% r1 ​Key observations
Share 88 88 88 88 89 89
of crop
farming
​There has been a spike
​37.2 in crop farming over the
to
agricult ​1.9 last few years – due to
ure ​2.1
​31.9 the government’s push
​1.5 limiting food imports to the
​27.3 ​2.1
​1.1 country
​23.9 ​2
​21.5 ​0.9 ​Livestock farming
​19.6 ​1.9
​0.8 accounted for ~9% of
​0.7 ​1.8
​1.7 agricultural farming in
​33.1
​28.3 2015 and dropped to ~5%
​24.2 in 2020
​21.1
​18.9
​17.1
​Increase in fishery and
forestry creates
opportunity or trends like
aquapolnics and grazing
​2015 ​2016 ​2017 ​2018 ​2019 ​2020
1. It includes fishing and forestry reserves
​ Source: NBS GDP reports
5
The Nigerian agriculture landscape has been poorly contested amongst traditional players and
other tech providers . . .
Peer-to-peer
Aggregator / Extension and extension
Input providers Farming Processing Financing other services provider

Asso-
ciations /
Trad-
itional
players

Tech
players

BOAT

​Similar to many other African countries, extension and other services has limited offerings

Source: Company websites, Press articles, Central Bank of Nigeria 6

..creating a large mass market that is still largely underpenetrated with banking penetration
xx A
​ ddressable1 Population size, #mn

Nigeria ​Nigerian
Agriculture agricultur
Estimates e
~
​ 3% segments
Off- XX
takers

Aggregators 2.4
​34%
​31% ​Agricultu
re players

Farmers 16.9

Input Providers
​Share of ​Participating ​Addressable 2.4
​economic in banking
​output sector1

1. Share of agriculture players using financial products, includes indirect players

2. Market sizing based on internal data approach

​Source: NBS GDP, Global Findex data, UN Population estimates,Statista 7

The agric industry continues to receive increasing government support,
and partnerships to drive the industry . . .
Newspaper headlines over the last month

​Key observations
​Governmental
​Governme representatives
nt support continue to support
and drive interest in
the Nigerian
agricultural industry

​Partnerships and
​Partnership policies continue to
s and drive agriculture
policies industry

​Source: Market interviews 8

. . . with multiple initiatives, programs and policies
​Initiatives / Program ​Description

Gov-  FG is investing in the construction of roads linking numerous part

1 Development of road infrastructure of the country, e.g. rehabilitation of Lagos Badagry expressway
ernment
initiatives  FG has commenced the development of additional ports in Akwa
2 Development of port infrastructure Ibom and Lagos to enhance its maritime capabilities

 FG is in constructing rail lines across the country to serve as an

3 Development of rail infrastructure
alternative to road transport and enhance distribution of goods
Establishment of special agric-  The FG is establishing Special Agro-Industrial Processing Zones
4 industrial processing zones to concentrate agro processing activities, i.e. the SAPZs

Gov-  It improves access to international markets by enhancing access

5 Agriculture Promotion Policy
ernment to information through a National Agricultural Information System
programs Nigeria Africa Trade and Investment  NATIPP is jointly launched by the FG and African Export-Import
and 6 Promotion Programme
Bank, to facilitate the expansion of Nigeria’s trade into Africa
policies
Presidential economic diversification  PEDI aims to enhance trade capacity in Agriculture by facilitating
7 initiative
new investments in the Agricultural and Agroallied industries
 Zero Reject Initiative was launched to enhance the acceptability
8 Zero Reject Initiative
of Nigerian products internationally
 The Government has placed trade barriers on select Agric.
9 Economic and Export Project Initiatives goods to protect local producers and stimulate growth of the
industry 9
Understanding the market:
Changing local supply and demand side
trends are transforming the agriculture
space
Supply: market
trends
Increased commodity prices
as a result of disruption of local
supply chains and border
closures
Regulatory support from the
government due to direct bans
or restricted dollar access for
key food items
Finance industry drive
agriculture financing as they
generate goodwill with
regulators
Digital innovations regarding
financing, input provision,
aggregation and other key
aspects
​Source: NBS GDP reports
Demand:
customer trends
Increasing demand for food
prices
• Based on rising population
and middle class
Rising want for digitalization
• Increasing smartphone
penetration is driving need
for digital solutions
Agric value chain faces
limited commercial solutions
• Current value chain is made
up of traditional players with
limited digital solutions
Market
implications
Short term:
• Radical digitalization required in
agriculture industry
• Large market opportunity for the
agriculture industry and within it
• Available industry support to
leverage
Long term:
• Traditional industry barriers
disappear
• Consumer journeys are driven
wholly by digital solutions
10
The Opportunity

Financing need
• Finance is required by
the agricultural sector to purchase
land, construct buildings, acquire
machinery and equipment, hire
labor, irrigation etc.
Digital extension need
• Farmers continue to have a need for
how to arrange farm inputs to drive
productivity and overall yield

Peer-to-peer interactions Productivity need

• Ability to drive interactions between
• Farmers require key data to support
related peers to update knowledge
farming needs and off-take data
on farming practices and geography
knowledge

11
 ​ Nigerian financial services market: trends, competitive
dynamics and opportunities

​ Synthesis of BOAT 2022-2026 strategy

Contents
​Deep Dive on BOAT strategic axes

​Financial trajectory – BOAT P&L impacts and main scenarios

​Implementation roadmap: short term priorities and key

milestones for 2022-26

12
BOAT is well positioned to address these users with key features

Our mission is “to leverage digital financial technology and innovation to provide simple,
accessible, efficient and inclusive banking and community farming solutions that are
secured and trusted in West Africa..”

Our value proposition is to be “Your reliable growth partner” that offers simple and reliable products tailored to the key
segments

​Smallholder farmers ​Agri-businesses ​Agric enthusiasts

​Providing convenient, ​Serving as a trusted growth ​Empowering individuals

affordable and reliable partner for value creation and interested in supporting and
solutions to support farming market expansion growing a farm
cycles and expansion

13
BOAT will initially focus on gaining scale as a lending and community specialist and gradually
evolving towards an integrated agricultural services provider
Focus area Customer segments Products & features
​2022 – 2023: ​2023 – 2024:
​Agriculture-tailored lending and Full mass market payment specialist & ​2024 – 2025:
community specialist marketplace player Agricultural service provider

Develop a presence at scale amongst Introduce business & merchant services to gain foothold Layer on additional agricultural services
smallholder farmers and agribusinesses with in MSE market and drive broad acceptance. Deploy lending like farm productivity, insurance to further
a core focus on lending and community products & beyond banking services and functionalities to meet consumer needs and cement market
platform further address needs of target segments position

​To fill when route-to-market strategy has ​To fill when route-to-market strategy has been developed ​To fill when route-to-market strategy has
been developed been developed

Basic feature set: A

​ ll from Phase 1 plus: A
​ ll from Phase 2 plus:
 Loan products  MSE wallets and accounts including payment  Technology tools
 Agriculture productivity tools acceptance via PoS, QR, USSD etc.  Insurance distribution
 Community platform  Full banking services
 Marketplace solution

14
To deliver on this vision, BOAT has defined a 4-year strategic plan structured around 3 axes

​Products ​Sales & Distribution ​Enablers – Org & Tech

I II III

​Develop and roll out a distinctive
product offering with
functionalities and service
delivery that meet the needs of
our target segments, and offer
targeted hooks to drive frequent
usage and stickiness
​Deploy an aggressive and
targeted GTM strategy to build out
a broad and deep network of
strategic partners and field agents
which will form the framework for
aggressive customer acquisition
and retention
​Set up the required enablers to
have a future proof organization
supporting innovation, growth and
agility in a fast-moving market & to
develop a robust and scalable
technology platform

15
These 3 strategic levers break down into 12 key initiatives to be deployed over the next 4 years
Mission
Our mission is “to leverage digital financial technology and innovation to provide simple, accessible, efficient
and inclusive banking and community farming solutions that are secured and trusted in West Africa..”
Stakeholders
Providing convenient, affordable and Serving as a trusted growth partner for Empowering individuals interested in
reliable solutions to support farming value creation and market expansion supporting and growing a farm
cycles and expansion

I. Develop a 1 ​Provide core lending and community 2 ​Introduce value-added services 3 ​Layer on additional services
distinctive solutions  MSE wallets and accounts including ​Satellite technology for outgrowers
product offering  Loan products payment acceptance via PoS, QR, USSD ​Third-party distribution including insurance
 Agriculture productivity tools etc.
 Community platform  Marketplace solution
4 Offer hooks to onboard and engage sizeable user base across customers and merchants

​II. Deploy a 5 ​Acquire and retain customers at-scale ​Acquire a wide network of businesses &
6 7 ​Develop a large network of agents
targeted ​Mass acquisition through partnerships merchants through partnerships
Sales & ​Bulk acquisition through partnerships ​Nationwide agent model
Distribution ​Offline direct acquisition through field
strategy agent networks O
​ ffline acquisition through field sales force S
​ trategic partnerships
​Targeted digital acquisition campaigns and
agent networks
8 Cross-cutting marketing for brand awareness and education towards potential customers, merchants and agents

10 ​Enable a robust marketing performance management system 9 ​Set up agent management model
​KPI selection & Analytics and dashboard reporting ​Agent role
​Agent governance & performance
management

​III. 11 S
​ trengthen the operating model to support innovation and agility 12 Enhance the technology systems and infrastructure to develop a
Implement robust and scalable tech platform
the required ​Organization structure & company-wide governance
enablers for ​Talent strategy and recruiting plan
success ​Agile delivery model

16
I. BOAT has defined a high level product roadmap for the coming 4 years
xx Key products Transactions Savings Lending Beyond Banking - VAS Agro-productivity

​2022-23 ​2023-24 ​2024-25

A
​ griculture-tailored lending and community specialist Full mass market payment specialist & Agricultural service provider
marketplace player

​Launch digital wallet and ​Introduce merchant services and ​Introduce value-added financial
community MVP – core ​Integrate additional functionalities marketplace position services
functionalities
​Individual wallet ​Individual current account ​ usiness wallet & current account incl.
B ​International remittances
merchant payment acceptance
​Cash-in & Cash-out ​Payment cards (virtual, physical)
​Instant merchant settlements
​ omestic P2P transfers with bank account /
D ​Proximity based payments ​Lending products for individuals & MSEs
phone number / user name ​Request payments
​Integration with multiple biller aggregators ​Insurance
​Bill payments ​ onsumer lending products for individuals
C ​Airtime credit
​Lending products for individuals & MSEs & MSEs
​Airtime purchases
​Output support loans
​Digital cash deposits ​Group savings accounts ​ ealth management e.g.. access to high yield
W
​Asset-support loans interest accounts, tiered interest rates
​Savings accounts for others depending on balance
​Lending products for individuals & MSEs
​ oal-based EOP savings accounts (incl.
G ​Savings rewards
​Input based loans
features like lock periods, balance rounding ​ recision technology for outgrowers e.g.
P
​Production support loans etc.) Satellite
​ arketplace for agricultural products for
M
​ igital community features for agricultural value
D ​Term deposits community players ​Third-party irrigation solutions
chain
​Irrigation reports
​Farm survey reports (Talk to experts)
​Market data information ​Completed

17
I. To address the consumer needs, BOAT will offer a suite of three distinctive solutions to the
Nigerian market

Community: Helps users with a

 Repository of user related
knowledge that agricultural players
can use to operate
​A. Community
 Create a continuous peer-to-peer ​Social media interaction
interaction platform platform to drive user
interaction
Productivity: Helps
farmers with
Financing: Helps farmers  Tool to support farming
with ​B. Financing ​C. Productivity tool operations
 Lending and other ​Banking and lending ​Agro-productivity tool that
application to drive users supports users with digital
financing products to farming solutions
attract customers
 Tailor services to provide
timely finance

18
A. Community ​Core
features
solution would serve
as a melting point for
• Support different types of posts and rich media to
agri-productivity ​Social enable user conversations in the BoAT network
platform • Support for users to create groups and topics to
form sub-communities and categorize the content
• Moderate content based on the differing user type
• Gamification systems like reputation score,
badges, and leaderboards within the community

• Plug-ins to other BOAT solutions or third-party

​Third-party
solutions; that allows each user accesses key
solutions
BOAT solutions

19
A. The eCommunity is a platform for individuals with common agricultural interests
● The purpose of the eCommunity
is to have a robust
group/platform containing self-
subscribing individuals who share
a common interest when it comes
to agriculture.
● The platform will enable open
discussions, interactions, and
information exchange on diverse
matters of common interest.
● The platform will also facilitate
the development of personal
relationships, to spur another
level of innovation as well as
development in the agriculture
sector.
What the eCommunity offers:
By being a part of the community, users are
A Sense of Scalable better exposed to the possibilities that exist within
Solutions the agricultural sector.
Members are able to connect with people, set
Connectivity & goals for themselves, create milestones and
Self-leadership document progress.
The community will support small businesses by
providing them with tools, financing, expert
BoAT Support advice and a marketplace for their products.
eCommunity
The strong laws and policies in place within the
community create a safe environment for
Safety & Security seamless interactions.
Diversity & The community will be a diverse group of
Inclusivity individuals from different age groups, gender,
ethnicities, backgrounds, etc.
20
B. Lending would serve as a key hook products to be tested and launched into the market for the
different releases
​High ​Moderate ​Low

​Concept ​Description ​Impact1 ​Ease2 ​Priority3 ​Monetization

1 ​Input based ​Secure loans to support farmers with ​Reliable input materials that come in Relatively fast to deploy
loans the necessary input materials they timely manner for planting season with limited procedural
would need, i.e. high quality seeds, and administrative focus
S
​ ignificant focus on credit based or
fertilizers, implements etc.
Escrow based account system

2 ​Production ​Loans to support working capital needs ​Moderate fund flows to support farm Supports expansion
cycle of farmers in terms of farm labor cycle needs such as weeding, security plans of overall farm
support (workers and farm managers) Interest on
and irrigation needs base
loan loan via money
3 ​Output based
P
​ rovide market off-take solutions to S
​ ecure offtake for farmers with the I​mplementation requires or soft produce
loans farmers for specified produce or invoice opportunity of getting paid in soft lead time
financing produce

4 ​Infrastructure​Support expansion project of farmers ​Community is a huge driver for driving ​Proven concept – but
support loanwith asset purchases and other consumer engagement requires strong risk process
facilities
5 ​BOAT
​Add-on service to loan products of ​Provides increased use for banking ​Likely requires significant
wallet
digital wallets to drive user balances for solutions to drive transactinos and lead time to deploy Transaction
digital banking other costs fees

1. Importance for customer acquisition and business case impact

2. Simplicity of implementation: IT / technical requirements, product design and sales communication
3. Overall assessment - base for prioritization (for initial go-live and following releases)

​Source: Market interviews, Findex, EFinA A2F 2020 21

 C. An agricultural productivity solution that helps farmers with low measure solutions while
gaining needed agric data

​App ​Description Capabilities provided by BOAT

features ​Collect respective farming data on; ​N/A
Data  farms (location, size, expected yield)
collection
 farming cycle (crops planted or animal farmed)
​Farm management solution

​Provide precise data based on user farm locations on;  Proprietary data (multiple models) on rainfall and
Weather expected wind
 Expected rainfall in a farming cycle
solutions
 Expected wind in a farm cycle
​Provide precise data based on user crop cycle on;  Local market data and overall sentiments
Daily
 Local market prices in different locations
market data
 Expected off-take ability within market
​Provide precise data based on user crop on;  Codified agronomical knowledge for each crop
Farming based on geography
tips  Farming stages and general tips
 Prompt on overall progress
Per- ​Collect respective farming data on; ​N/A
formance  yield performance
measure
 market price sold at and value

Source: Market research 22

II. Even in a conservative scenario, we anticipate to attract ~750K – 1M customers in the region
by the fourth year of operation
​11% of farmers in the country are ​We could potentially capture 30 -
young and digitally enabled 40% of the market

​16.9 millions ​1.8 millions ​~540 – 720k

​total number of ​farmers attracted in
​total number of
customers Nigeria
farmers
​7% of individuals in the country are
young or digitally enabled
​~750K – 1M
​7.2 millions ​~490 k ​~150 – 200k ​customers attracted in
​total number of ​Individuals attracted Nigeria
​total number of individuals
individuals in Nigeria
in farming related activities

​1.8 millions ​~213 k

​total number of
​~60 – 85k
​total number of tertiary ​Tertiary students
individuals AgroMall has
student attracted in Nigeria
connection to 1.7
​12% of students within relevant million farmers in
universities study agric related
the country
courses
​Source: Market interviews 23
II. We would implement four strategies to drive customer acquisition of 128k users in the first
year
​Planned approach ​Description T
​ arget users

Clear brand identity and  Detailing out brand mission, vision and value
communication strategy propositions for the target market
​Indirect user
Brand book and manual for visual  Drive necessary fonts, colors and themes to shape acquisition method,
Branding identity brand persona for general public focus is mainly to
1 and drive promotion and
marketing  Deploy consistent campaigns to drive promotions and awareness
Clear social media interaction plan
awareness within target market

Promotions and awareness  Messaging and activity for other media channels (radio,
campaigns print) to drive solutions

Deploy relevant ads across social media  Target digital users with compelling stories to drive
Digital (Twitter, Facebook) acquisition
2 acquisition
strategies
​~38K users
Target influencers to drive acquisition  Use influencers within the space to drive programs

 Drive users with field sales agents with monthly targets

Use field sales officers and agents
Direct on customer acquisition needed
3 sales ​~51K users
acquisition Event activation team  Run campaigns in user hotspots to attract customers

 Partnerships with relevant corporates, aggregators and

4 Partner-
ships
Drive partnerships with relevant players
other players ​~38K users 24
III. Future BOAT operating model will be based on 4 design principles
Principles

​Efficiency ​Customer experience ​Accountability ​Agility

​Low cost model to support ​Focus on customer service ​Simple organization structure ​Use of transversal and
an effective delivery of and prompt issue resolution with clear & easy-to- cross-functional squads,
products and services to low- as a critical element of understand mandate for allowing both fast delivery of
income segment BOAT’s brand promise each entity, with clear BOAT products and clear
accountabilities and ownership
reporting relationships within
the organization to support
fast decision making
​Operating model design should satisfy regulator requirement for certain roles 1

1. Roles concerned: 2 Executive Directors and a Chief Compliance Officer

25
III. BOAT will operate in an agile manner leveraging the concept of “squads” to accelerate
product development

A Tribe A ​Tribe D ​Tribe Lead

 A combination of squads set up to  Sets Tribe objectives in for the
B address BOAT’s priorities, e.g. following 3 months
D Tribe lead product development
e.g. Squad Squad Squad Squad  Guides Product Owners on
 Head of tribe coordinates between squad-based priorities in line
E
squads with the tribe ones
 Has the final say on squad
staffing to achieve objectives

B ​Squad (business/ E ​Product Owner

customer team)  Prioritizes activities of squad
F
Technology  An autonomous multidisciplinary  Maintains backlog and to- do list
C team of ~9 people able to define
chapter of squad
work and make business decisions  Does not give orders and is not
F  Has E2E-responsibility for a certain the classical manager
Design mission related to client, e.g., loan
chapter application squad

C ​Chapter (know-how groups) F ​Chapter leader

Scrum master
 Groups of functional competencies  Coordinates performance
/ agile coach
that will exchange and share best evaluation
practices, e.g., customer experience,  Sets agenda for meetings
marketing, etc.  Develops people

26
III. An estimated ~23-30 additional FTEs will be required over the
next year depending whether lending is launched or not,
respectively

​Estimated number of required FTE based on benchmark of player operating in a similar space. To be refined
over time in line with BOAT growth trajectory while understanding AgroMall would support staffing need
​Current ​Estimated need in coming
FTE year
​Roles count In-house Outsourced ​Comments
​Leadership team ~4 ~
​6 0
​
​Technology team could be a mix of in-house
​Technology team ​~4 ​~12 ​~1 and outsourced balancing knowledge with
flexibility
​Strategy and product team ​~3 ​~5 ​~0

​Marketing and sales team ​~0 ​~3 ​~72 ​Field agents would drive majority of the need

​Contact center supervision ​0 ​~5 ​0

Community team would need to staff freelance
​Other functions (includes ​~0 ​~3 ​~23 agents to drive participation and knowledge
community) sharing
​Totals (no lending scenario) ~11 +23 ​~34 ~86

​Risk team ​0 ​~5 ​0

​Lending scenario requires a risk team 2 as well
​Squad related roles ​0 ​~2 ​0 as squad related roles

​Totals (lending scenario) ~11 +30 ​~41 ​~86

1. Risk team made of: Head of Risk, Risk management & credit analysis, Credit risk analysis, Collections

27
III. Fast-decision making and regular meeting cadence will be
required to track progress and drive execution

​Meeting
​Governance level ​Members ​Responsibility frequency
​Quarterly Business  CEO and Functional heads  Define strategic goal & detailed development/ ​Quarterly
Review acquisition plan
 Adjust/ add KPI target
 Budget & headcount planning
 Competitor analysis
​Monthly  CEO and Functional heads  Development progress & achievement tracking M
​ onthly
Management  Make decisions on key strategic and/
meeting or operational matters

​Sprint Review  Product development squads
‒ Product Owner, Scrum Master, Team,
Users and stakeholders
 Any interested parties
 9PSB leadership can attend periodically
 Review the Team’s accomplishments during the ​Weekly
sprint
 Gather feedback on the completed work
 Align on next priorities

​Stand-up Meeting1  Product development squads
‒ Product Owner, Scrum Master, Team,
Users and stakeholders
 Any interested parties
 BOAT leadership can attend periodically
 Present a status update to all the Team's ​Daily
members
 Raise possible issues and synchronizes efforts
to eliminate challenging and time-consuming
problems

1. Other Agile gouvernance detailed in the "Agile playbook"

28
III. From a technology standpoint, there are several steps that
BOAT could take to ensure a reliable technical experience for
customers
​Medium term (12-24 months)
​Short term (12 months)
 Implement Elastic search for more efficient search
capabilities and CDN to bring service closer to
 Implement monitoring, ensure instrumentation of customers
metrics to ensure visibility of the service
 Implement WAF to prevent application level attacks
 Set up mature application support and monitoring and help with OWASP conformity
process
 Implement caching to reduce requests to backend
 Integration of robust IT helpdesk tools
 Separate Read and write APIs calls to improve
 Ensure capture or telemetry and logging and provide performance
access to authorised personnel
 Implement Kubernetes for better automation
 Deploy robust CICD production and staging pipelines
 Set up availability and redundancy on the RDBMS.
while introducing read only clusters to improve reads
 Introduction of graph type to improve performance
of fanout System
 Introduce database sharding to improve
performance of dbms fetches
29
One main scenario has been defined, Depending on permissible activities defined by the
regulator and acquisition strategies

Base case scenario

​Descriptio ​BOAT will carry out basic financial transactions excluding lending as permitted
n through current product plan as a Agricultural service provider

​Scope of ​Deposits/savings (incl. wallet) from individuals and businesses and lending to
activities farmers
​Community platform for relevant agricultural enthusiast
E-commerce platform for relevant agricultural related activites
Subscriptions based system for precision farming solutions
​Levers ​Agric related players, agri-businesses,, farmers and enthusiasts, assumptions
flexed via partnerships, offline and digital channels

30
 For discussion – based on assumptions
contained in the "Assumptions" section
of the financial model shared
Financial results – Agricultural provider scenario

​Revenue ​3.1
​NGN ​10.2
​1.3
billions ​0.46 ​6.5
​0.15 ​2.8

​OPEX
​NGN Further details to include IT cost to showcase expected
​billions ​5.1 ​6.8 OPEX costs ​8.4
​2.6

​EBITDA ​1.7
​NGN
​-2.3 ​-2.3
​billions ​-0.3

-727% -83% -5% 17%

2021 2022 2023 2024

31
 For discussion – based on assumptions
contained in the "Assumptions" section
IT and Sales & Distribution costs represent the largest of the financial model shared
recurring cost buckets
Basecase scenario
Cost drivers, NGN Millions Key assumptions and comments
​Sales & Distribution - ​734
acquisition & ​622  Acquisition costs for agri-businesses, farmers and agric enthusiasts using
digital, offline and partnerships
activation
​222  Above the line marketing campaigns aiming at creating brand awareness
​176
on the market (digital & offline)

 Increase from ~30 FTE to ~103 FTE, with additional FTE in particular on the
​Personnel
marketing and community side
​452 ​538
​315  Include squad-related costs for the product development part (3-5 squads
​186 depending on the scenario)

​IT
Further details to include IT cost to showcase expected OPEX costs

​70 ​81
​51 ​61
​Other OPEX  Includes Office maintenance, professional fees and travel

​Total

Source: xx 32
Over the next 6-12 months, BOAT should focus on delivering 11 priorities across its three
strategic axes
​2021 ​2022

I ​Develop a ​Enhance lending and community functionalities

distinctive
product ​Deploy savings accounts based on target features ​Individual ​Group

offering
​Develop marketplace platform to prepare launch in 2023

II ​Deploy a ​Roll-out incentive structure and benefits for stakeholders

targeted
Sales & ​Map out partners and secure at least 2 major partnerships with aggregators for mass ​Customer ​MSEs
acquisition s
Distribution
​Enhance direct sales agent and agent management platform
strategy
​Define agent operating model, e.g., territories, liquidity, performance management

III ​Implement ​Plan and launch targeted marketing campaigns (offline primarily, minimal digital)
required
enablers ​Define and structure the squad model for digital factory
for success
​Implement clear technology vendor SLAs to ensure system reliability

​Build the customer support engine to ensure high-quality customer experience

33
 ​Nigerian financial services market: trends, competitive
dynamics and opportunities
​Synthesis of BOAT 2021-2024 strategy
​Deep Dive on BOAT strategic axes
Contents  Value Proposition
 Go-to-Market
 Enablers
​Financial trajectory – BOAT P&L impacts and main
scenarios
​Implementation roadmap: short term priorities and key
milestones for 2021-24

34
The Nigerian agricultural value chain can be broken down into four macro segments with
farmers and input providers being the majority
x Average monthly income 2019, NGN million

Agricultural value chain

Total customer size1, Banked customer2, Average income3,
XX, million XX, million XX, million

Off-
XX
takers

Aggregators XX

Farmers XX

XX
Input Providers

1. Adults aged 15 and above, proxied by count of Bank Verification Numbers (BVNs), assuming that anyone with a BVN also has a bank account. This represented ~35% of adult population in 2019
2. Includes revenue that is expected to be captured by telcos and fintechs

Source: XX 35
Of the value chain, small holder farmers are selected as priority segments for BOAT
Selected segments
​Value chain
players ​Segments ​Description Examples
Large commercial farms with over 20 hectares in crop ​Family
Farming Commercial 1 Business ​Business enterprise
farmers player holdings or farm assets size larger than N100 mn
s

Smallholder 2 Traditional Vocational farmers aged 40 and older who own 1 – 15 ​Vocational
farmers farmers hectares in crop holdings or farm assets within N10 –
N100 mn
3 Young Vocational farmers under 40 who own 1 – 15 hectares ​Young
farmers in crop holdings or assets within N10 – N100 mn Vocational

​Young ​Teache
4 Working Working professionals who own 1 – 15 hectares in crop
professionals holdings or farm assets within N10 – N100 mn professio r
nal
​Rural
Subsistence 5 Rural Rural farmers who have farms to support family’s
dweller
farming farmers meals,
s

Input measures Businesses Agri businesses who support farmers with implements, ​Implem ​Fertilize
6
fertilizers and extension services ent r

Formal Individuals earning N20k-N100k, medium tech ​House

Other Agric 7 ​Student
mass knowledge, formally employed wife
enthusiasts

General 8 Informal Individuals earning N20k-N100k, low tech knowledge, ​Laborer

Public mass focused on basic services and FI
1. BOP: Bottom Of Pyramid

Source: Market research 36

We focused market research on the 4 selected target mass
market segments…

​Priority ​Financial Segment Digital

segments ​Description ​General pain points behavior size, Mln savviness
• Lending need to support with • Limited financial
Young adults with sole
1 ​Young farming cycle input needs usage with primary use
farming focus; post
farmers secondary school for lending activities 1.7
• Expansion of current farm size
education
​Small- - +
holder • Lending need to support and • Zero financial usage
2 ​Working Young educated adults who
farmers profession use farming as a secondary
source farming cycle input needs as financing is provided
internally 0.2
als means of income with digital • Extension services to improve
devices farming knowledge
- +
• Lending need to acquire farm • Regular financial
​Enterpri 3 A
​ gric Businesses with a
assets and expand usage with strong
business workforce who provide input
ses supplies; agrochemicals, • Marketing services to improve relationships with local 0.5
banks and
seeds, farm implements to farming demand of product - +
governmental agencies
farmers

​Others Varied enthusiasts from out • Lending need to kickstart and • N/A
​Agric 4
of work youths, working support farm operations
enthusia professionals and
0.2
• Operational skills to operate farms
st agricultural students
- +

​Source: SMEDAN MSME Survey 2017, World Bank Indicators, NBS, EFinA Fintech Assessment 2020, EFinA financial access report 2020, Local estimates 37
…which unveiled key needs across lending, supports and market linkages
Importance
High Low

​Customer needs
​Priority
segments ​Lending Support needs Market linkage

​Easy, timely and reliable transactions ​Extension services ​Offtake for farm
1 ​Young to increase yield for produce on a
farmers ​Returns for farming loans to be provided in agricultural
farm standardized
produce
measurement
S
​ mall- ​Low-cost services and complete transparency on
holder charges
farmers ​Understanding farm ​Secured offtake for
2 ​Working ​Easy, timely and reliable transactions
profession operations and hiring farm produce on a
​Returns for loans to be provided in agricultural skilled hands standardized
als
produce or single digit loans measurement
​Extension services
​Loans services to support farm expansion plans to increase yield

​Enterpri 3 ​Agric ​Easy, timely and reliable transactions ​Targeted bankinh ​N/A
ses business ​Returns for loans to be provided in low interest rates services to support
expansion plans
​Targeted loan services to support expansion plans

4 ​Others ​Loans to kick-start agricultural enterprise ​Support with farm ​Secured offtake for
​Agric operations farm produce
enthusia ​Loan support for first operations
st ​Extension services ​Sourcing for farm
to increase yield inputs

​Source: SMEDAN MSME Survey 2017, World Bank Indicators, NBS, EFinA Fintech Assessment 2020, EFinA financial access report 2020 38
 1 Getting interest rates that support my ​Young farmers
business is important

Backstory ​Financial behaviors

Emmanuel lives in Lagos but he has a farm on the  Operates farming account using mostly cash and
Lagos-Ibadan. He travels every week to his farm and uses digital services via personal account,
​Emmanuel stays there every other week. He employs multiple
farm hands to support his business
 He frequently receives financing from private
investors who he provides ~20% ROI every farm
​<40 ​Plants multiple Ibadan cycle
crops  Consistently invests personal savings to support
​Basic
 Married
​Goals and Aspirations farm operations, as revenue is not self-sustaining
Details  Possesses university education
 Owns a smartphone The goal is to create a company that exists from the
farm size.
Expanded current farms to become a larger farm to
 Possesses farm size of 76
begin a company.
​Farmin hectares ​Financial Needs
g  Plants Maize, Plantain,
cycles Cassava and Rubber for  Flexible lending plan with a low-cost savings plan
over 6 years ​Pain points  Access to financial advice on extension services
 Finding low cost financing options that provide  Timely lending services for each farm cycles
timely loans for input farming cycles  Safe and secure banking platform
​Willingn
ess to
​ Low ​ High  Getting extension services to improve farm yield
Adopt of existing farm
new - +
 Irrigation services to water farms are key
Digital
Product solutions
s

39
​Source: Customer interviews
 2 I want to be the largest producer for ​Working professionals
spices in the South West

Backstory ​Financial behaviors

Jide lives in Lagos but he has a farm around Epe.  Operates farming account using mostly cash and
He travels every week to his farm and employs uses digital services via personal account,
​Jide multiple farm hands, as well as farm management, to
provide his business
 He frequently receives financing from personal
savings, as revenue is not self-sustaining
​<30 ​Plants multiple Ibafo
crops
​Basic
 Single
Details  Possesses university education ​Goals and Aspirations
 Owns a smartphone The goal is to be the number on producer for spices
and potato within south west.
This helps take out the challenge of dealing logistics
 Possesses farm size of 8
and export
​Farmin hectares ​Financial Needs
g  Plants Lemon, Soursop,
cycles Avocado, Mangoes and  Flexible lending plan with a low-cost savings plan
Tabgelos for over 4 years ​Pain points  Access to financial advice on extension services
 Finding low cost financing options that provide  Timely lending services for each farm cycles
timely loans for input farming cycles and farm  Secure financing for off-take of agricultural
​Willingn produce
​ Low ​ High expansions
ess to
Adopt  Irrigation services and finding skilled hands to
new - + manage farms are difficult solutions
Digital
Product  Securing offtake providers for agricultural
s produce

40
​Source: Customer interviews
 4 Establishing a farm is challenged by
finance. Determined to do it by
​Working professionals
myself

Backstory ​Financial behaviors

Bimbo lives in Lagos but she currently works as an  N/A related to agriculture financing
Audit intern. She has huge dreams to own farms
​Bimbo while leveraging her father’s information as a farmer

​<25 ​Agric enthusiasts Lagos

​Basic
 Single
Details  Possesses university education ​Goals and Aspirations
 Owns a smartphone Short-term goal is to expand father’s land and
include farming features
Long-term goal is to become profitable
 Heavily interested in animal
​Farmin farming such as Fish ​Financial Needs
g farming, Poultry, Pig
interest farming  Flexible lending plan with a low-cost savings plan
s ​Pain points  Access to financial advice on extension services
 Finding low cost financing options that kickstart  Timely lending services for each farm cycles
farming cycles  Secure financing for off-take of agricultural
​Willingn produce
ess to
​ Low ​ High  Receive training to operate farm and create
Adopt extension services to train farmers to improve
new - + yield
Digital
Product
s

41
​Source: Customer interviews
To address consumer need, BOAT will offer three distinctive solutions to the market for the
Nigerian market

Community: Helps users with a

 Repository of user related
knowledge that agricultural players
can use to operate
​I. Community
 Create a continuous peer-to-peer ​Social media interaction
interaction platform platform to drive user
interaction
Productivity: Helps
farmers with
Financing: Helps farmers  Tool to support farming
with ​II. Financing ​III. Productivity tool operations
 Lending and other ​Banking and lending ​Agro-productivity tool that
application to drive users supports users with digital
financing products to farming solutions
attract customers
 Tailor services to provide
timely finance

42
A. Community ​Core
features
solution would serve
as a melting point for
• Support different types of posts and rich media to
agri-productivity ​Social enable user conversations in the BoAT network
platform • Support for users to create groups and topics to
form sub-communities and categorize the content
• Moderate content based on the differing user type
• Gamification systems like reputation score,
badges, and leaderboards within the community

• Plug-ins to other BOAT solutions or third-party

​Third-party
solutions; that allows each user accesses key
solutions
BOAT solutions

43
A. The eCommunity is a platform for individuals with common agricultural interests
● The purpose of the eCommunity
is to have a robust
group/platform containing self-
subscribing individuals who share
a common interest when it comes
to agriculture.
● The platform will enable open
discussions, interactions, and
information exchange on diverse
matters of common interest.
● The platform will also facilitate
the development of personal
relationships, to spur another
level of innovation as well as
development in the agriculture
sector.
What the eCommunity offers:
By being a part of the community, users are
A Sense of Scalable better exposed to the possibilities that exist within
Solutions the agricultural sector.
Members are able to connect with people, set
Connectivity & goals for themselves, create milestones and
Self-leadership document progress.
The community will support small businesses by
providing them with tools, financing, expert
BoAT Support advice and a marketplace for their products.
eCommunity
The strong laws and policies in place within the
community create a safe environment for
Safety & Security seamless interactions.
Diversity & The community will be a diverse group of
Inclusivity individuals from different age groups, gender,
ethnicities, backgrounds, etc.
44
B. Lending would serve as a key hook products to be tested and launched into the market for the
different releases
​High ​Moderate ​Low

​Concept ​Description ​Impact1 ​Ease2 ​Priority3 ​Monetization

1 ​Input based ​Secure loans to support farmers with ​Reliable input materials that come in Relatively fast to deploy
loans the necessary input materials they timely manner for planting season with limited procedural
would need, i.e. high quality seeds, and administrative focus
S
​ ignificant focus on credit based or
fertilizers, implements etc.
Escrow based account system

2 ​Production ​Loans to support working capital needs ​Moderate fund flows to support farm Supports expansion
cycle of farmers in terms of farm labor cycle needs such as weeding, security plans of overall farm
support (workers and farm managers) Interest on
and irrigation needs base
loan loan via money
3 ​Output based
P
​ rovide market off-take solutions to S
​ ecure offtake for farmers with the I​mplementation requires or soft produce
loans farmers for specified produce or invoice opportunity of getting paid in soft lead time
financing produce

4 ​Infrastructure​Support expansion project of farmers ​Community is a huge driver for driving ​Proven concept – but
support loanwith asset purchases and other consumer engagement requires strong risk process
facilities
5 ​BOAT
​Add-on service to loan products of ​Provides increased use for banking ​Likely requires significant
wallet
digital wallets to drive user balances for solutions to drive transactinos and lead time to deploy Transaction
digital banking other costs fees

1. Importance for customer acquisition and business case impact

2. Simplicity of implementation: IT / technical requirements, product design and sales communication
3. Overall assessment - base for prioritization (for initial go-live and following releases)

​Source: Market interviews, Findex, EFinA A2F 2020 45

B. We would offer each lending product based on a set of customization tools
​Crop farmers ​Livestock farmers
​Short ​Medi ​Long ​Short ​Medi ​Long
​Loan type ​Loan product term um term term um term
term term
1 Seedlings support

Input based 2
Fertilizers & Agro-chemicals
loans loan
3 Livestock input support

4 Farm production support

Production
cycle support
5 Labor hands support

6 Invoice financing
Output based
loans
7 Offtake support

Infrastructure 8 Asset financing

support loans
9 Infrastructure support

Other 10 Customize loan

Source: Market research 46
B. With lending as a key solution, we need to create principles to manage and mitigate risks
​Risk ​Stakeholders to
measures ​Description ​What’s needed consult

​Macro ​Refers to risk spread across the ​Specify guidelines that

A
risk lending portfolio to manage restrict portfolio risk in terms
exposure of;
​Guidelines need to be made to  Produce spread
​Traditional bank
restrict the risk  Farmer spread, etc. lenders
B ​Micro ​Measures risk based on the credit ​Specify guidelines that assess ​Digital lenders
risk risk posed by each loan applicants risk for individual lenders to
​Guidelines are needed to manage accept or reject it
the risk brought by each lender

​Risk ​Guarantee schemes that support ​Understand risk and other ​NIRSAL
C
support and insure the risk to reduce measures needed to access ​ACGSF
schemes overall defaul rate respective guarantees

​Source: Market interviews 47

B. On the macro risk, we would create six rules across four categories to manage our portfolio
​Risk
category ​Descriptio ​Guideline
 nSpecify guidelines required A Loanbook is not above ~35% in any region
to ensure that loan book is
Location
not dominated in a single
region or state B Loanbook is not above ~15% in any state

 Ensures that loan book is not C Loanbook is not above ~50% in any loan class
dominated by a specific
Product
product
D Loanbook is not above ~20% in any loan product

 Ensures that loan book is not

Crops E Loanbook is not above ~20% in any crop or livestock
dominated by a crop
 Ensures that loan book is not F Loanbook is not above ~1% in any user
Users dominated by a single user

Source: Market research 48

B. On the micro risk, we would use a 12 point scoring system to assess the credit risk of
individual lenders
​Loan X User provided data X Internal data set
application
​Credit ​User requirement BOAT’s approach to credit assesment
process
scoring
1 Crop or livestock grown Specify crop or livestock planned to grow • Use data provided with existing agronomist
knowledge to internally assess expected
Expected 2 Region Specify region and state farm lived in production performance of planned output
production
performance 3 Climate reality Internal data, not applicable to user • Scoring system would be applied and lenders
need to meet cut-off
4 Off-take probabibilty Internal data, not applicable to user

5 Farming experience Specify farming cycles ran and yield outlook • Use data to assess skill of farmer
Technical • Community users would only require transform
farming 6 Area scale Specify size of area planned to farm score as scoring system
expertise • Scoring system would be applied and lenders
7 Farm land rented or owned Specify if farm land is rented or owned need to meet cut-off

8 Income diversification Specify income streams, if singular or multiple • Use data to assess income generation ability of
potential farmers and ability to repay
Income Provide attachment of account statements for • Scoring system would be applied and lenders
6 Loan repayment ability
diversification past 6 months need to meet cut-off
10 Previous loan performance Internal data, not applicable to user

11 Group lenders Previously provided data, not applicable to user • Use data to assess additional risk support for loan
• Additional scoring system provides cheaper loans
Asset profiling
12 Viable for risk guarantee Previously provided data, not applicable to user and extra scores to credit system

Source: Market research 49

B. We would additionally implement multiple M&E strategies based on
different loan amount while leveraging the extension services to
community
​… and transition
extension services to
​It is critical to implement monitoring and evaluation services for loans based on community in the long
different amount thresholds… term

​Loan ​Monitoring and evaluation strategy Use local community for

amounts extension services related
​<250,000  Users self-report data on the varying stages of their farming via matters and existing
the financing app repository of knowledge
 Risk team spot checks some of the varying amount of users self
reported data in this class with community players

​250,000 –  Users self-report data on the varying stages of their farming via
1,000,000 the financing app
 Risk team spot checks each user self-reported data in this class,
at least once with community players
​1,000,000+  Users self-report data on the varying stages of their farming via
the financing app
 Risk team spot checks each user at the varying stages with
extension agents
​Source: Market interviews, Findex, EFinA A2F 2020 50
C. Farmers and experts have identified 3 key challenges that have served as pressing needs
​Challenges ​Description
1
​ ​Irrigation as a ​Securing necessary
problem materials to ensure irrigation
and water materials for
farms are huge difficulties
​Retaining and measuring
​2Skilled hands
as a problem skilled farm labor has come
out as a challenge
T
​ heft and other problems
have been mentioned
3
​ Market linkage
as a problem
​Difficulty in terms of finding
off-take or understanding
market solutions
Source: Market research
Quotes
​“Challenges has been
getting water... We did a N1
m project that failed. Buying
water has made it rather
expensive”
“ We have a massive skill
deficit - crude labor and farm
management”
“ It would be easier to get an
understanding of the market”
Potential digital solution
​Irrigation scheduling
program based on in-field
data
​Provides forecast from
different models of rain and
windfall
​Digital imagery and
scouting to assess farm
states
​Smart machinery to
automate planting and
harvesting
S
​ hows prices of
agricultural produce
51
 C. An agricultural productivity solution that helps farmers with low measure solutions while
gaining needed agric data

​App ​Description Capabilities provided by BOAT

features ​Collect respective farming data on; ​N/A
Data  farms (location, size, expected yield)
collection
 farming cycle (crops planted or animal farmed)
​Farm management solution

​Provide precise data based on user farm locations on;  Proprietary data (multiple models) on rainfall and
Weather expected wind
 Expected rainfall in a farming cycle
solutions
 Expected wind in a farm cycle
​Provide precise data based on user crop cycle on;  Local market data and overall sentiments
Daily
 Local market prices in different locations
market data
 Expected off-take ability within market
​Provide precise data based on user crop on;  Codified agronomical knowledge for each crop
Farming based on geography
tips  Farming stages and general tips
 Prompt on overall progress
Per- ​Collect respective farming data on; ​N/A
formance  yield performance
measure
 market price sold at and value

Source: Market research 52

I. BOAT has defined a high level product roadmap for the coming 4 years
xx Key products Transactions Savings Lending Beyond Banking - VAS Agro-productivity

​2022-23 ​2023-24 ​2024-25

A
​ griculture-tailored lending and community specialist Full mass market payment specialist & Agricultural service provider
marketplace player

​Launch digital wallet and ​Introduce merchant services and ​Introduce value-added financial
community MVP – core ​Integrate additional functionalities marketplace position services
functionalities
​Individual wallet ​Individual current account ​ usiness wallet & current account incl.
B ​International remittances
merchant payment acceptance
​Cash-in & Cash-out ​Payment cards (virtual, physical)
​Instant merchant settlements
​ omestic P2P transfers with bank account /
D ​Proximity based payments ​Lending products for individuals & MSEs
phone number / user name ​Request payments
​Integration with multiple biller aggregators ​Insurance
​Bill payments ​ onsumer lending products for individuals
C ​Airtime credit
​Lending products for individuals & MSEs & MSEs
​Airtime purchases
​Output support loans
​Digital cash deposits ​Group savings accounts ​ ealth management e.g.. access to high yield
W
​Asset-support loans interest accounts, tiered interest rates
​Savings accounts for others depending on balance
​Lending products for individuals & MSEs
​ oal-based EOP savings accounts (incl.
G ​Savings rewards
​Input based loans
features like lock periods, balance rounding ​ recision farming for out-growers, e.g.
P
​Production support loans etc.) Satellites
​ arketplace for agricultural products for
M
​ igital community features for agricultural value
D ​Term deposits community players ​Third-party irrigation solutions
chain
​Irrigation reports
​Farm survey reports (Talk to experts)
​Market data information ​Completed

53
BOAT’s services will be delivered across a
mix of physical and digital channels
With agents being a core lever for mass market
reach, to cater to different channel preferences

​Physical channels ​Digital channels

Agents

​Mobile App

​Internet ​POS
banking terminals

54
 Journey of a student
By so doing, BOAT will embed itself in the life of utilizing BOAT end-to-end
its customers
farming solution
NOT EXHAUSTIVE
LEASE LAND INPUT SHOPPING
Tomi pays a bulk fee or gets a
​Category ​Relevant use cases loan from BOAT and leases land
Necessary implements, seedlings
and fertilizers are delivered to farm
to grow a short-term cash crop location
Farming platform as potential IT
​Agric students program to run farms and earn
income

​Out-of-work Potential short term opportunity to

youths generate income

COMMUNITY LEARNING
Proven income to additionally Tomi accesses BOAT’s digital Tomi receives tailored digital
​Working provide credit support community for support in managing learning from agronomists on how
farm to set-up farm and hiring labor
profession Second income opportunity
als
Potential path for farmers to use
​Farmers
product

APP SUPPORT OFFTAKE

Tomi receives PUSH Tomi sells his output and repays his loan to
notifications from BOAT to BOAT
support farming 55
 ​Nigerian financial services market: trends, competitive
dynamics and opportunities
​Synthesis of BOAT 2021-2024 strategy
​Deep Dive on BOAT strategic axes
Contents  Value Proposition
 Go-to-Market
 Enablers
​Financial trajectory – BOAT P&L impacts and main
scenarios
​Implementation roadmap: short term priorities and key
milestones for 2021-24

56
The Go-to-Market model encompasses both the acquisition strategy
and the support engine that drives the delivery of the acquisition targets

Micro and small

Lower mass individuals businesses Agents
Rapidly grow the number of Broaden business acceptance Provide a large, wide-reaching
​GTM active users and transactionality agent network
Pillar
s

Cross-cutting marketing for brand awareness and education

by potential customers, businesses and agents

​Agent ​Set up a well-functioning governance and operational building

operating blocks to support the agent network

​Supp model
ort Marketing ​Effectively track marketing performance to ensure success of
performance offline and digital campaigns
Engin
e
57
II. Even in a conservative scenario, we anticipate to attract ~750K – 1M customers in the region
by the fourth year of operation
​11% of farmers in the country are ​We could potentially capture 30 -
young and digitally enabled 40% of the market

​16.9 millions ​1.8 millions ​~540 – 720k

​total number of ​farmers attracted in
​total number of
customers Nigeria
farmers
​7% of individuals in the country are
young or digitally enabled
​~750K – 1M
​7.2 millions ​~490 k ​~150 – 200k ​customers attracted in
​total number of ​Individuals attracted Nigeria
​total number of individuals
individuals in Nigeria
in farming related activities

​1.8 millions ​~213 k

​total number of
​~60 – 85k
​total number of tertiary ​Tertiary students
individuals AgroMall has
student attracted in Nigeria
connection to 1.7
​12% of students within relevant million farmers in
universities study agric related
the country
courses
​Source: Market interviews 58
II. We would implement four strategies to drive customer acquisition of 128k users in the first
year
​Planned approach ​Description T
​ arget users

Clear brand identity and  Detailing out brand mission, vision and value
communication strategy propositions for the target market
​Indirect user
Brand book and manual for visual  Drive necessary fonts, colors and themes to shape acquisition method,
Branding identity brand persona for general public focus is mainly to
1 and drive promotion and
marketing  Deploy consistent campaigns to drive promotions and awareness
Clear social media interaction plan
awareness within target market

Promotions and awareness  Messaging and activity for other media channels (radio,
campaigns print) to drive solutions

Deploy relevant ads across social media  Target digital users with compelling stories to drive
Digital (Twitter, Facebook) acquisition
2 acquisition
strategies
​~38K users
Target influencers to drive acquisition  Use influencers within the space to drive programs

 Drive users with field sales agents with monthly targets

Use field sales officers and agents
Direct on customer acquisition needed
3 sales ​~51K users
acquisition Event activation team  Run campaigns in user hotspots to attract customers

 Partnerships with relevant corporates, aggregators and

4 Partner-
ships
Drive partnerships with relevant players
other players ​~38K users 59
Go-to-market strategy

Further details to launch on go-to-market strategy would include full details on GTM pillars and the
support engines that power them

60
 ​Nigerian financial services market: trends, competitive
dynamics and opportunities
​Synthesis of BOAT 2021-2024 strategy
​Deep Dive on BOAT strategic axes
Contents  Value Proposition
 Go-to-Market
 Enablers
​Financial trajectory – BOAT P&L impacts and main
scenarios
​Implementation roadmap: short term priorities and key
milestones for 2021-24

61
BOAT seeks to implement the required enablers for success

Enhance the technology systems and

infrastructure to develop a robust and
Strengthen the operating model scalable tech platform

62
BOAT has defined a preliminary perspective on its organizational structure…
​
H ​ ac
V ​AgroMall resourced
ir anc
CEO e y
d

Internal control

Head of Growth & Lead, Strategy & Human Resources, Legal,

Head of IT Head of Marketing
Distribution Product SM SM

Legal,
Product Manager Growth officers Associate HR Advisor Branding lead
Junior Associate

Back end Business

Agents manager
developers Intelligence

Front end
Sales lead
developers

UI designer

63
III. Future BOAT operating model will be based on 6 design principles
Principles

​Efficiency ​Customer ​Accountability ​Agility

​Low cost model to experience ​Simple organization ​Use of transversal and
support an effective ​Focus on customer structure with clear & cross-functional squads,
delivery of products and service and prompt issue easy-to-understand allowing both fast
services to low-income resolution as a critical mandate for each entity, delivery of BOAT
segment element of BOAT’s brand with clear products and clear
promise accountabilities and ownership
reporting relationships
within the organization to
support fast decision
making
​Operating model design should satisfy regulator requirement for certain roles 1

1. Roles concerned: 2 Executive Directors and a Chief Compliance Officer

64
As BOAT grows as a community solution provider and evolves towards a lending role, some
critical senior roles will be needed within the organization

​Head of The Head of Finance responsibilities include creating forecasting models, assessing risk in investments and
Finance ensuring all accounting activities comply with regulations. To be successful in this role, he or she would have
experience crafting financial strategies and managing accounting teams. An In-depth understanding of cash flow
management, bank reconciliation and bookkeeping is also required for the role

​Head of The Head of Marketing is responsible for all marketing and communication. He or she will design, implement and
Marketing oversee effective marketing strategies that are aligned with business objectives. The Head of Marketing will work
closely with the rest of the leadership team, oversee the internal marketing teams and play an important role in
shaping the company's strategic planning.

​Head of He/she is responsible for the development, implementation and continuous improvement of the digitalization of
Customer customer service processes through digital of offline channels, in order to offer an optimal and agile experience to
Service & the users of the platform. He/she must also carry out analysis on the performance of these digital channels and
propose improvements when required. He/she is also responsible for providing real time feedback on customer
Experience experience complaints and issues to product development and design teams

​Head of Risk In the event that BOAT begins to lend, the Head of Risk is tasked with assessing and mitigating significant
operational, competitive, regulatory and technological threats to BOAT’s business. An important part of the role of
the Head of Risk is ensuring sound risk assessment of potential borrowers, defining the right appetite for lending
as well as ensuring processes are in place to minimize losses from lending

65
Independent of its org structure, BOAT will operate in an agile manner leveraging the concept of
“squad” to accelerate on product development

A Tribe A ​Tribe D ​Tribe Lead

 A combination of squads set up to  Sets Tribe objectives in for the
Tribe lead B address BOAT’s priorities, e.g. following 3 months
D e.g. CPO Squad Squad Squad Squad product development  Guides Product Owners on
 Head of tribe coordinates between squad-based priorities in line
E
squads with the tribe ones
 Has the final say on squad
staffing to achieve objectives

B ​Squad (business/ E ​Product Owner

F customer team)  Prioritizes activities of squad
Technology
C  An autonomous multidisciplinary  Maintains backlog and to- do list
chapter
team of ~9 people able to define of squad
work and make business decisions  Does not give orders and is not
F
Design  Has E2E-responsibility for a certain the classical manager
chapter mission related to client, e.g.,
Community squad

Scrum master C ​Chapter (know-how groups) F C

​ hapter leader
/ agile coach  Groups of functional competencies  Coordinates performance
that will exchange and share best evaluation
practices, e.g., customer experience,  Sets agenda for meetings
marketing, etc.  Develops people

66
To operationalize the concept of squad, BOAT has 2 main options

Recommended approach (Deep dive follows)

​Type of ​Implications for

squad ​Short boat ​Pros ​Cons
structure description
​Product ​Teams are built around ​Set up squads based ​Focus on product ​Interdependencies
the product journeys product offerings with delivery and need to be managed
journeys1 thought out from a changes in priorities, in customer across products &
customer-centric point line with the product experience, platforms (e.g.,
of view. The team release roadmap especially in the CBA)
works on these launch phase
journeys in an omni-
channel manner

​Platforms / ​Teams are set-up ​Set up one squad to ​Alignment between ​Journeys & user
around distribution focus digital product product offering and experience differs by
channel channels (e.g., digital, offerings and another to the expect user platform
agency banking, etc.) focus on offline product experience via ​Tech-driven org.
or platforms and offerings. However, channels
manage them E2E there is a need to
(e.g., mobile app, ensure consistency
online banking, Etc.) between online/offline
experience
1. Illustrative products for understanding – some producto journeys won't apply to BOAT as it is currently set-up as a business

67
Illustration of the squad structure – BOAT could set up two squads in the initial phase, with
critical roles retained in-house
Recommended to be in-house Can be outsourced
ILLUSTRATIVE

Squad 1 – Squad 2 –
# Lending & Agro-productivity platform # Community platform
Product Owner Product Owner

Business Analyst Community lead

Product Designer Product Designer

Tech Lead Tech Lead

Developers Android iOS Back end Developers Android iOS Back end

QA QA

IT architecture / integration

Scrum master

Commercial Operations

Marketing / Customer Experience

68
Squads will need to work leveraging best practices of product delivery
​Discussed ahead

1 Foster one-team ​Foster one-team culture that is conducive to in-person or remote work
culture ​Institute frequent communication: 1:1 catch-ups with team members, constant
updates, periodic (360) feedback and incentive scheme based on collective/cross-
functional KPIs to foster collaboration
​Praise and role model proactive accountability and efficient communication

2 Set up a ​Create a dedicated team room / working space for squads, and facilitate effective
dedicated co-creation, communication and decision making using full suite of collaboration
workspace tools
environment ​Train and onboard team members on how to use various collaboration tools
3 Use Agile delivery ​Support end-to-end project delivery with governance structures to ensure clarity
methodology on objectives, strategic alignment within teams, constant iteration towards
output/results, performance measurement, timely escalation and resolution of
issues, and fast decision making

4 Adopt a test and ​Adopt a test & learn mindset – pilot, learn & improve ways of working
learn mindset

69
Agile methodology – BOAT squads will follow the main principles of Agile methodology to ensure
fast & efficient delivery of target products

​Scope ​Sprints ​ Team

​Measure ​Engineering ​Product
and ​Incubati 1+ resourcin
​Sprint 0 & Practices launch and
Understa on and g and set
Adjust for Agile adoption
nd Releases up
​Best-in-class ​Building MVP ​Mobilizing ​Operating in ​Key metrics to
business case milestones team Scrum track
practices framework
User research ​Aligning on ​Tracking and
​Exit checklist Product vision and ​Sprint events reporting
for Understand visioning defining project and cadence
phase OKRs ceremonies
MVP scoping
​Building a
​Exit backlog and
checklist for conducting
Incubation release
stage planning

S
​ etting up
tech-nical
foundations

​Creating initial
assets

​Exit checklist
for Sprint 0 70

stage
III. An estimated ~23-30 additional FTEs will be required over the
next year depending whether lending is launched or not,
respectively

​Estimated number of required FTE based on benchmark of player operating in a similar space. To be refined
over time in line with BOAT growth trajectory while understanding AgroMall would support staffing need
​Current ​Estimated need in coming
FTE year
​Roles count In-house Outsourced ​Comments
​Leadership team ~4 ~
​6 0
​
​Technology team could be a mix of in-house
​Technology team ​~4 ​~12 ​~1 and outsourced balancing knowledge with
flexibility
​Strategy and product team ​~3 ​~5 ​~0

​Marketing and sales team ​~0 ​~3 ​~72 ​Field agents would drive majority of the need

​Contact center supervision ​0 ​~5 ​0

Community team would need to staff freelance
​Other functions (includes ​~0 ​~3 ​~23 agents to drive participation and knowledge
community) sharing
​Totals (no lending scenario) ~11 +23 ​~34 ~86

​Risk team ​0 ​~5 ​0

​Lending scenario requires a risk team 2 as well
​Squad related roles ​0 ​~2 ​0 as squad related roles

​Totals (lending scenario) ~11 +30 ​~41 ​~86

1. Risk team made of: Head of Risk, Risk management & credit analysis, Credit risk analysis, Collections

71
At the management level, fast-decision making will be required and regular progress review –
proposed 9PSB governance
​Governance level ​Members
​Quarterly Business
​CEO and Functional heads
Review
​Monthly Management ​CEO and Functional heads
meeting
​Sprint Review ​Product development squads
 Product Owner, Scrum Master, Team,
Users and stakeholders
​Any interested parties
​9PSB leadership can attend
periodically
​Stand-up Meeting ​Product development squads
 Product Owner, Scrum Master, Team,
Users and stakeholders
A
​ ny interested parties
9
​ PSB leadership can attend
periodically
​Responsibility ​Meeting frequency
​Define strategic goal & detailed ​Quarterly
development/ acquisition plan
​Adjust/ add KPI target
​Budget & headcount planning
​Competitor analysis
​Development progress & ​Monthly
achievement tracking
​Make decisions on key strategic and/
or operational matters
​Review the Team’s accomplishments ​Weekly
during the sprint
​Gather feedback on the completed
work
​Align on next priorities
​Present a status update to all the ​Daily
Team's members
​Raise possible issues and
synchronizes efforts to eliminate
challenging and time-consuming
problems
72
BOAT seeks to implement the required enablers for success

Enhance the technology systems and

infrastructure to develop a robust and
Strengthen the operating model scalable tech platform

73
There are several steps that BOAT could take to ensure a reliable technical experience for
customers
FOR DISCUSSION
​Short term
 Engage with the system vendor and
establish a war room for monitoring
transaction volume patterns, such as
seasonal peaks, or processing peaks
caused by promotions, etc.
 Perform an extensive diagnostic of the
mentioned errors
 Confirm that processing capacity is
sufficient for volume levels and increase
processing capacity if this is
identified as a root cause
 Define availability and quality-related
SLAs with software vendors, with clear
financial penalties for poor functioning
​Long term
​Medium term
 Internalize knowledge on how to  Perform a technical assessment of the
troubleshoot at least the core banking current architecture and infrastructure
system (ideally should be for all systems) to identify improvement opportunities and
establish both a roadmap and a business
 Negotiate dedicated capacity from the case for IT
vendors for troubleshooting errors
 Improve the core banking system’s
horizontal scalability with auto-scaling.
This would enable it automatically detect
spikes on transaction volume and react
by automatically scaling up its
processing capacity
74
III. From a technology standpoint, there are several steps that
BOAT could take to ensure a reliable technical experience for
customers
​Medium term (12-24 months)
​Short term (12 months)
 Implement Elastic search for more efficient search
capabilities and CDN to bring service closer to
 Implement monitoring, ensure instrumentation of customers
metrics to ensure visibility of the service
 Implement WAF to prevent application level attacks
 Set up mature application support and monitoring and help with OWASP conformity
process
 Implement caching to reduce requests to backend
 Integration of robust IT helpdesk tools
 Separate Read and write APIs calls to improve
 Ensure capture or telemetry and logging and provide performance
access to authorised personnel
 Implement Kubernetes for better automation
 Deploy robust CICD production and staging pipelines
 Set up availability and redundancy on the RDBMS.
while introducing read only clusters to improve reads
 Introduction of graph type to improve performance
of fanout System
 Introduce database sharding to improve
performance of dbms fetches
75
 ​ Nigerian financial services market: trends, competitive
dynamics and opportunities

​ Synthesis of BOAT 2022-2026 strategy

Contents
​Deep Dive on BOAT strategic axes

​ Financial trajectory – BOAT P&L impacts and main

scenarios

​Implementation roadmap: short term priorities and key

milestones for 2022-26

76
One main scenario has been defined, Depending on permissible activities defined by the
regulator and acquisition strategies

Base case scenario

​Descriptio ​BOAT will carry out basic financial transactions excluding lending as permitted
n through current product plan as a Agricultural service provider

​Scope of ​Deposits/savings (incl. wallet) from individuals and businesses and lending to
activities farmers
​Community platform for relevant agricultural enthusiast
E-commerce platform for relevant agricultural related activites
Subscriptions based system for precision farming solutions
​Levers ​Agric related players, agri-businesses,, farmers and enthusiasts, assumptions
flexed via partnerships, offline and digital channels

77
 For discussion – based on assumptions
contained in the "Assumptions" section
of the financial model shared
Financial results – Agricultural provider scenario

​Revenue ​3.1
​NGN ​10.2
​1.3
billions ​0.46 ​6.5
​0.15 ​2.8

​OPEX
​NGN Further details to include IT cost to showcase expected
​billions ​5.1 ​6.8 OPEX costs ​8.4
​2.6

​EBITDA ​1.7
​NGN
​-2.3 ​-2.3
​billions ​-0.3

-727% -83% -5% 17%

2021 2022 2023 2024

78
Lending represents the majority of revenues in all scenarios
​Annual revenue breakdown, NGN Billions Comments
​Lending ​Across all key scenarios
(Basecas
e
scenario)

​Source: Financial model 79

 For discussion – based on assumptions
contained in the "Assumptions" section
IT and Sales & Distribution costs represent the largest of the financial model shared
recurring cost buckets
Basecase scenario
Cost drivers, NGN Millions Key assumptions and comments
​Sales & Distribution - ​734
acquisition & ​622  Acquisition costs for agri-businesses, farmers and agric enthusiasts using
digital, offline and partnerships
activation
​222  Above the line marketing campaigns aiming at creating brand awareness
​176
on the market (digital & offline)

 Increase from ~30 FTE to ~103 FTE, with additional FTE in particular on the
​Personnel
marketing and community side
​452 ​538
​315  Include squad-related costs for the product development part (3-5 squads
​186 depending on the scenario)

​IT
Further details to include IT cost to showcase expected OPEX costs

​70 ​81
​51 ​61
​Other OPEX  Includes Office maintenance, professional fees and travel

​Total

Source: xx 80
Comparison of licensing cost and capital requirements in the case
where lending for MFB players
NOT EXHAUSTIVE
C
​ ommerci
​Permissible Activities ​PSB ​MFB al Bank
Non-retail banking services (i.e. corporate) No No Yes ​Key Takeaways
Non-interest banking services No No Yes
Lending services No Yes Yes ​MFB and commercial
Investments and trading Yes Yes Yes
bank licenses allow for
lending, PSB does not.
International payments/transfers No No Yes
Insurance underwriting No No No ​However, cross-border in-
Foreign exchange services No No Yes
bound remittances are
disallowed for MFBs yet
Financial advisory services Yes Yes Yes
available to PSB
Establishing a subsidiary No No Yes
Electronic wallet operation Yes Yes Yes
C
​ ommercial bank licenses
are most comprehensive
Debt factoring services No No No
but carry higher entry and
Debit and pre-paid card issuance Yes Yes Yes
management cost
Custodial services No No Yes
Asset management services No No No
Deploy ATM Yes Yes Yes
Carry out remittances Yes1 Yes2 Yes

Cost of license, NGN mn 2.5 1.3 5.5

Minimum capital requirement (National license), NGN 5bn 5bn 25bn
1. Domestic and in-bound cross border remittances 2. Domestic remittances only 3. Minimum requirement for Shareholders’ Fund

​Source: CBN 81
Targeted financing available to BOAT to advance its agriculture and financial
inclusion mandate

Facility Description Facility amount

​Africa Digital Financial  Financing support for development of payment services related to financial ​$400 million by
Inclusion Facility inclusion and digital financial services 2030
 Facility is directed by Africa Development Bank Group

​UN Capital Development  Financing support for firms driving adoption off mobile and digital ​$100 million
Fund technology in emerging markets support per year
 Focus on financing categories has been on;agriculture, financing,energy,
education, health and transport

​EFINA Innovation Fund  Financing support for innovative solution that aligns with financial inclusion ​$250,000

​Bill and Melinda Gates  Financing support for digital payment systems that poor people and the ​Case by case
Foundation businesses that serve them will actually use basis

​European Investment  Financing actions with a view to promoting socio-economic development, ​~ €3 billion per
Bank poverty reduction and a strong formal economy year
Africa Investment Among others, EIB promotes the development of the African financial
Platform sector to sustainably improve access to finance and financial inclusion

Source: Africa Development Bank website, UN Capital Development Fund website, EFINA website, Bill and Melinda Gates, EIB website 82
 ​ Nigerian financial services market: trends, competitive
dynamics and opportunities

​ Synthesis of BOAT 2022-2026 strategy

Contents
​Deep Dive on BOAT strategic axes

​ Financial trajectory – BOAT P&L impacts and main scenarios

​ Implementation roadmap: short term priorities and

key milestones for 2022-26

83
Over the next 6-12 months, BOAT would focus on delivering 11 priorities to kickstart its
accelerated growth trajectory
​2021 ​2022

I ​Develop a ​Enhance lending and community functionalities

distinctive
product ​Deploy savings accounts based on target features ​Individual ​Group

offering
​Develop marketplace platform to prepare launch in 2023

II ​Deploy a ​Roll-out incentive structure and benefits for stakeholders

targeted
Sales & ​Map out partners and secure at least 2 major partnerships with aggregators for mass ​Customer ​MSEs
acquisition s
Distribution
​Enhance direct sales agent and agent management platform
strategy
​Define agent operating model, e.g., territories, liquidity, performance management

III ​Implement ​Plan and launch targeted marketing campaigns (offline primarily, minimal digital)
required
enablers ​Define and structure the squad model for digital factory
for success
​Implement clear technology vendor SLAs to ensure system reliability

​Build the customer support engine to ensure high-quality customer experience

84
I. High-level implementation checklist - Product

Product team (Community, Agro-Productivity and lending team) required to show overall workplan

85
II. High-level implementation checklist – Sales & Distribution

Distribution team required to show overall workplan

86
IIi. High-level implementation checklist – Enablers

Tech & Org team to show workplan

87
End of strategic blueprint document

88