African Agribusinesses Get $85m Funding Support

This money was provided by the trio of Swedfund, British International Investment (BII), and Norfund. It will be distributed to the beneficiaries through a specialist investor transforming agriculture across sub-Saharan Africa, AgDevCo.

The investment will enable AgDevCo to expand its portfolio of small and medium-sized enterprises (SMEs) across countries in sub-Saharan Africa. This will include agribusinesses producing nutritious foods for local consumption and high-value export crops.

AgDevCo’s portfolio contributes to improved food security, poverty reduction in underserved communities and the growth of competitive industries.

A statement made available to Business Post indicated that the investment in the firm by the trio comprises up to $20 million from Swedfund, $50 million from BII and $15 million from Norfund.

AgDevCo’s investments have already benefited over two million smallholder farmers, improving their livelihoods, climate resilience and food security.

“Improved Food Systems is one of Swedfund’s focus areas. It is important to invest across the food value chain to boost resilience, adaptability, and food security,” the Senior Investment Manager at Swedfund, Tomas Wadström, said.

Also, the Director and Head of Food, Agriculture and Natural Capital at BII, Roman Frenkel, said, “This investment underscores BII’s commitment to empowering agribusinesses that are driving sustainable practices, strengthening food systems, and building economic opportunities for rural communities.”

“Our $15 million to bring our total investment in AgDevCo to $35 million reflects our unwavering commitment to supporting enterprises that empower smallholder farmers, enhance local food systems, and build resilience against climate change.

“By addressing the financing gaps and driving sustainable practices, this partnership is not only a catalyst for increased productivity but also a vital step toward lifting underserved communities out of poverty,” the Investment Manager at Norfund, Donald Muchiri Kariuki, stated.

“Developing commercial agriculture in Africa requires patient and strategic investment. We are fortunate to have shareholders who recognize the huge potential as well as the challenges of investing in the sector.

“This latest capital injection from BII, Norfund, and Swedfund strengthens AgDevCo’s position as a leading specialist investor, enabling us to grow our portfolio and drive positive impact at scale,” the chief executive of AgDevCo, Daniel Hulls, remarked.

Africa faces complex and urgent challenges in its agricultural sector, including limited financing, climate vulnerabilities, low market access and underdeveloped value chains.

AgDevCo works to address these issues by investing across the agricultural value chain, from primary production to logistics, ensuring sustainable practices and improved resilience.

In 2023, over 2.4 million small-scale farmers, customers, and traders of which 29 per cent were women benefited from markets and income opportunities linked to AgDevCo’s portfolio companies. Furthermore, over 28,000 jobs were directly supported in the same year.