Sahel Capital, a leading private equity firm focused on the African agribusiness sector, has successfully closed a $1.5 million working capital loan for Rasad Nigeria. This investment was facilitated through the Social Enterprise Fund for Agriculture in Africa (SEFAA) and marks a significant expansion of the partnership between the two entities.
This new facility is not just a fresh injection of liquidity but a strategic renewal and scale-up of SEFAA’s prior financing. It is specifically designed to meet Rasad’s intensifying capital requirements as it expands its footprint across the competitive cocoa value chain.
Based in Ogun State, Rasad is a family-led agribusiness that has become a critical link in Nigeria’s agricultural infrastructure. The company’s operations include:
- Massive Aggregation: Sourcing high-quality cocoa and cashew from a network of over 1,000 smallholder farmers and local aggregators.
- Global Reach: Serving as a reliable supplier to both the Nigerian domestic market and sophisticated international buyers.
- Operational Excellence: Maintaining a disciplined approach to logistics and supply chain management in a volatile commodity market.
Strategic Vision: “Rasad 2.0”
The investment comes at a pivotal moment as the company transitions into its next phase of growth, dubbed “Rasad 2.0.” This strategy focuses on diversifying revenue streams and moving higher up the value chain through:
- The Axias Global Spin-off: A dedicated entity created to focus on specialized export trading.
- Circular Economy Initiatives: Implementing waste-reduction practices and sustainable resource management.
- Value-Added Processing: Shifting from raw commodity trading to the processing of agricultural produce to capture higher margins.
The deal reflects a strong vote of confidence from the investment community despite global economic pressures.
Deji Adebusoye, Partner at Sahel Capital, noted:
Rasad has demonstrated strong operational discipline and consistent growth since our initial investment. This increased facility reflects our confidence in the company’s execution capacity and its role in supporting inclusive growth in Nigeria’s agricultural value chains.
Ahmed Adeagbo, Director of Strategy and Finance at Rasad, added:
Even with global headwinds in the cocoa market, our business has remained resilient… Over the past five months, we’ve run a series of experiments with very encouraging results, and we are now doubling down on them. It’s an exciting time for us, and we’re glad to have Sahel Capital supporting us.
By providing Rasad with the necessary “dry powder” to scale, SEFAA is directly supporting the livelihoods of over a thousand rural farming families. The loan ensures that these smallholders have a consistent, well-capitalized buyer for their harvests, fostering long-term stability in the Ogun State agricultural corridor.
