AgDevCo, a specialist impact investor focused on agriculture in Africa, has announced a follow-on investment of $7.2 million in its long-standing portfolio company, EFAfrica Group (EFAG). Structured as a long-term loan, the funding is designed to help EFAG scale its operations and extend its reach to more farmers and agribusinesses across the continent.
EFAG plays a critical role in Africa’s agricultural ecosystem by offering equipment leasing solutions to farmers and small-to-medium enterprises (SMEs) who are typically excluded from traditional banking services due to stringent collateral requirements and complex loan procedures.
By providing access to essential machinery, such as tractors, trucks, and other agricultural equipment, with lease values ranging from $10,000 to $80,000, EFAG has already empowered over 1,500 entrepreneurs in Kenya, Tanzania, and Zambia. These tools are vital for improving productivity, reducing post-harvest losses, and enabling sustainable growth in rural economies.
According to John Jakobsson, Investment Director at AgDevCo, the new capital will enable EFAfrica Group to offer larger lease packages to agribusinesses and service providers, thereby expanding its footprint and impact.
This investment supports EFAG’s continued growth and helps promote sustainable economic development in rural areas, while contributing to regional food security.
John Jakobsson
EFAG’s Chief Operating Officer, Nicomed Bohay, emphasized the strategic importance of the partnership with AgDevCo. He noted that the funding would allow EFAG to deepen its role in transforming agriculture through mechanization, which remains one of the most effective ways to boost productivity and resilience in African farming.
By providing the right tools and financing solutions, we’re empowering businesses that are essential to rural development and food security,
Nicomed Bohay
EFAG’s approach addresses a major gap in agricultural finance by offering flexible, asset-backed leasing to underserved clients. This model not only enables farmers to access modern equipment but also helps build credit histories and financial literacy, laying the groundwork for long-term economic empowerment.
AgDevCo’s continued support signals confidence in EFAG’s business model and its potential to scale across Africa, where mechanization remains low and access to finance is a persistent barrier to growth.
