Sahel Capital, a leading investment management firm dedicated to advancing food and agriculture across sub-Saharan Africa, has successfully closed a $590,000 loan facility with Rasad Nigeria through its Social Enterprise Fund for Agriculture in Africa (SEFAA). This strategic funding package is structured to support both operational and growth needs, with $450,000 allocated for working capital and $140,000 earmarked for capital expenditure.
Rasad Nigeria is a family-run agribusiness based in Ogun State, Nigeria. The company plays a pivotal role in the agricultural value chain by aggregating cocoa and cashew nuts from a network of over 1,000 smallholder farmers and local aggregators. Rasad supplies these commodities to both domestic and international markets, contributing significantly to Nigeria’s agricultural exports.
Deji Adebusoye, Partner at Sahel Capital, commented on the partnership:
Rasad is making a meaningful impact in Nigeria’s cocoa sector by helping smallholder farmers access reliable markets. Their proactive sourcing strategy, including expansion into border communities, has helped the company maintain year-round procurement cycles and manage commodity price volatility.
Sahel Capital currently manages two major funds:
- Fund for Agricultural Finance in Nigeria (FAFIN) – focused on equity and quasi-equity investments in small and medium-sized agribusinesses within Nigeria.
- Social Enterprise Fund for Agriculture in Africa (SEFAA) – primarily provides structured debt financing to agribusiness SMEs across 13 countries in sub-Saharan Africa.
In addition to these funds, Sahel Capital is actively raising capital for its next investment vehicle, the Sahel Capital Agribusiness Fund II, which will target agribusiness opportunities across West Africa. Legal advisory for the SEFAA-Rasad Nigeria transaction was provided by Jackson, Etti & Edu, a prominent law firm known for its expertise in corporate and commercial law.