AgDevCo, an investment firm focused on agribusiness in Africa, has secured a substantial financial boost through an $85 million joint investment from three prominent partners: Swedfund, British International Investment (BII), and Norfund. This funding initiative is aimed at enhancing agricultural productivity and food security in sub-Saharan Africa by providing support to high-impact agribusinesses that can make a significant difference in the region.
The investment package comprises contributions of up to $20 million from Swedfund, $50 million from BII, and $15 million from Norfund. These funds are intended to enable AgDevCo to broaden its portfolio of small and medium-sized enterprises (SMEs) throughout the region, with a particular emphasis on businesses that produce nutritious foods for local markets as well as high-value crops intended for export.
Tomas Wadström, Senior Investment Manager at Swedfund, highlighted the critical need to improve food systems in sub-Saharan Africa, where challenges such as limited access to financing, climate vulnerabilities, and inadequate infrastructure persist. He pointed out that investing across the entire food value chain can significantly enhance resilience, boost production capacity, and create job opportunities, especially for smallholder farmers who are vital to the agricultural landscape.
Roman Frenkel, Director and Head of Food, Agriculture, and Natural Capital at BII, characterized the investment as a clear demonstration of BII’s commitment to strengthening food systems and promoting sustainable agricultural practices. He emphasized that by empowering agribusinesses, this initiative will not only contribute to economic growth but also foster long-term development in rural communities across Africa.
Echoing these sentiments, Donald Muchiri Kariuki, Investment Manager at Norfund, underscored the essential role of agriculture in driving inclusive economic growth. With Norfund’s total investment in AgDevCo now amounting to $35 million, Kariuki stressed the importance of financing enterprises that empower smallholder farmers, bolster local food systems, and address the challenges posed by climate change. He noted that the collaboration with BII and Swedfund would play a crucial role in helping underserved communities transition out of poverty.
AgDevCo’s CEO, Daniel Hulls, welcomed the investment, emphasizing the necessity for patient and strategic capital to foster the development of commercial agriculture in Africa. He expressed gratitude for the support from shareholders who recognize both the immense potential and the challenges present in the sector. Hulls stated that this additional funding reinforces AgDevCo’s position as a leading specialist investor, enabling the organization to scale its impact and drive agricultural transformation throughout the region.
