A consortium of development finance institutions (DFIs) : Swedfund, British International Investment (BII), and Norfund has collectively invested $85 million in AgDevCo, a specialist investor focused on transforming agriculture in sub-Saharan Africa.
This substantial injection of capital aims to bolster small and medium-sized agribusinesses (SMEs), driving increased productivity and strengthening food systems across the region.
The investment breaks down as follows: BII contributing $50 million, Swedfund committing up to $20 million, and Norfund adding $15 million, bringing their total investment in AgDevCo to $35 million.
This funding will enable AgDevCo to expand its portfolio of high-impact agribusinesses, including those producing nutritious foods for local markets and high-value export crops.
These businesses play a crucial role in improving food security, reducing poverty in underserved communities, and fostering the growth of competitive industries.
AgDevCo tackles the complex challenges facing Africa’s agricultural sector, such as limited financing, climate vulnerabilities, restricted market access, and underdeveloped value chains.
Their investments span the entire agricultural value chain, from primary production to logistics, emphasizing sustainable practices and enhanced resilience.
In 2023, AgDevCo’s portfolio companies supported over 2.4 million small-scale farmers, customers, and traders, with women representing 29% of beneficiaries.
Furthermore, over 28,000 jobs were directly supported.
AgDevCo reports that each dollar invested has generated $2.50 in higher incomes for rural and peri-urban households through employment and other income-generating opportunities.
Looking ahead, the platform anticipates its portfolio will benefit four million farmers and support 60,000 jobs annually by 2030.
This investment also signifies significant progress in climate finance.
Over half of AgDevCo’s primary production investments incorporate some form of regenerative agriculture, promoting climate adaptation, resilience, and carbon sequestration.
This aligns with the DFIs’ commitment to advancing climate-positive investments and reducing carbon emissions.
Tomas Wadström, Senior Investment Manager at Swedfund, emphasized the need to invest across the food value chain to boost resilience, adaptability, and food security, contributing to poverty reduction through job creation and improved production capacities.
On his part, Roman Frenkel, Director and Head of Food, Agriculture and Natural Capital at BII, underscored the commitment to empowering agribusinesses that are driving sustainable practices, strengthening food systems, and building economic opportunities for rural communities.
Donald Muchiri Kariuki, Investment Manager at Norfund, affirmed their commitment to supporting enterprises that empower smallholder farmers, enhance local food systems, and build resilience against climate change.
Additionally, Daniel Hulls, CEO at AgDevCo, highlighted the importance of patient and strategic investment in developing commercial agriculture in Africa, emphasizing the organization’s strengthened position as a leading specialist investor.
AgDevCo, established in 2009 with the UK Government as a long-term supporter and major funder (currently with a $190 million endowment), has a portfolio of approximately 40 companies spread across eleven sub-Saharan African countries.
Their investments target various stages of the agricultural value chain in lower and lower-middle-income countries.
This latest investment from Swedfund, BII, and Norfund, following funding secured from BII, Norfund, and DFC in 2022, will further amplify AgDevCo’s impact on African agriculture.
