African agribusinesses investor AgDevCo has secured $85m (€81.2m) from development finance institutions British International Investment (BII) Swedfund and Norfund.
UK’s development finance institution and impact investor BII made a $50m equity investment in AgDevCo alongside a $20m investment from Swedfund, and $15m from Norfund.
This investment will provide AgDevCo with the capital to expand its support for small and medium-sized enterprises across sub-Saharan Africa. The focus will be on agribusinesses that produce nutritious foods for local markets and high-value crops for export.
Lord Collins of Highbury, parliamentary under-secretary of State for Africa, said: “The UK government has been a long supporter of AgDevCo since its establishment in 2009. I’m delighted to see BII building on its existing investments in AgDevCo, alongside other development finance institutions. It’s a great example of how British private investment can deliver economic growth across Africa.
“Not only will this increased investment in African agribusinesses improve the livelihoods of farmers in sub-Saharan Africa, it will also contribute to food security across the continent and strengthen UK supply chains.”
BII’s $50m commitment, alongside its previous $50m investment in 2022, makes it AgDevCo’s largest external investor.
Roman Frenkel, director and head of food, agriculture and natural capital at BII, 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.
“Through this collaboration, we are not only enhancing food security but also laying the foundation for long-term development and prosperity across sub-Saharan Africa. We are excited to deepen our partnership with AgDevCo and work alongside Norfund and Swedfund to transform food systems in Africa.”
Tomas Wadström, senior investment manager at Swedfund, said: “Food systems is one of Swedfund’s focus areas. The agricultural sector in sub-Saharan Africa faces numerous challenges such as limited access to financing, climate vulnerabilities, and poor infrastructure.
“Therefore, it is important to invest across the food value chain to boost resilience, adaptability, and food security. This in turn will contribute to poverty reduction through job creation and better production capacities, including for smallholder farmers.”
Donald Muchiri Kariuki, investment manager at Norfund, said: “Our $15m investment, which brings our total investment in AgDevCo to $35m, 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.”
Daniel Hulls, CEO at AgDevCo, said: “Developing commercial agriculture in Africa requires patient and strategic investment.
“We are fortunate to have shareholders who recognise the huge potential as well as the challenges of investing in the sector.”
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