Sahel Capital, through its Social Enterprise Fund for Agriculture in Africa (SEFAA), has granted a $500,000 working capital loan to Agriarche, a company dedicated to enhancing market access for smallholder farmers in Nigeria. This investment is designed to strengthen the connections between farmers and fast-moving consumer goods (FMCG) companies, thereby reinforcing Nigeria’s agricultural supply chains.
Agriarche plays a vital role in tackling the challenges posed by the fragmented commodity value chains prevalent in Nigeria’s agricultural sector. The funding will empower Agriarche to broaden its outreach, ensuring stable pricing for farmers while optimizing the agricultural supply network for FMCG companies. This initiative is expected to create a more efficient and reliable system that benefits all stakeholders involved.
Deji Adebusoye, a partner at Sahel Capital, emphasized the significant impact Agriarche is having on the livelihoods of smallholder farmers by utilizing technology to bridge the gap between farmers and economic hubs. This approach has resulted in fairer pricing and increased opportunities for farmers to reinvest in their operations.
By partnering with Agriarche, FMCG companies can drive meaningful impact for smallholder farmers, who are the backbone of Nigeria’s food system.
Deji Adebusoye, Partner at Sahel Capital
Sahel Capital manages several funds, including the Fund for Agricultural Finance in Nigeria (FAFIN), which supports small and medium-sized enterprise (SME) agribusinesses in the country, and SEFAA, which provides structured debt financing to agribusiness SMEs across 13 sub-Saharan African nations.
Additionally, the firm is currently in the process of raising capital for a new investment initiative, the Sahel Capital Agribusiness Fund II, which aims to expand agribusiness opportunities throughout West Africa. This ongoing commitment to supporting the agricultural sector underscores Sahel Capital’s dedication to fostering sustainable development and economic growth in the region.
