Sahel Capital’s Social Enterprise Fund for Agriculture in Africa (SEFAA) has secured a $10 million investment from the Mastercard Foundation Africa Growth Fund, a move that could reshape financing for agricultural small and medium-sized enterprises (agri-SMEs) across sub-Saharan Africa. The deal, channeled through MEDA Mauritius, underscores growing recognition that Africa’s food and agriculture sector is both underserved and central to the continent’s future.
Launched in 2021 with anchor funding from KfW Development Bank, SEFAA was designed to address a structural problem: agri-SMEs that are too big for microfinance but too small or risky for commercial banks. These companies form the backbone of Africa’s food systems, yet they struggle to access capital that would allow them to scale operations and support smallholder farmers.
With Mastercard’s backing, SEFAA plans to expand its reach to 13 African countries and aims to create over 10,000 jobs for women and youth. Since inception, the fund has already processed 33 facilities for 18 companies across seven countries. The new commitment significantly accelerates its trajectory.
A Strategic Injection of Capital
“This $10 million commitment is a testament to our team’s hard work and the impactful work we are doing,” said Mezuo Nwuneli, Managing Partner of Sahel Capital. “It will be instrumental in accelerating our efforts to improve income opportunities for smallholder farmers by enabling the agri-SMEs that engage with them, further strengthening our position as a leading fund in the food and agriculture sector in Africa.”
For Mastercard Foundation, the deal fits into its Africa Growth Fund mandate: unlocking catalytic capital for high-potential enterprises that create dignified jobs and advance inclusive growth. By partnering with fund managers like Sahel Capital, the Foundation is betting on Africa’s entrepreneurial ecosystems as engines of resilience and prosperity.
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Beyond Financing: Building Ecosystems
The investment is about more than injecting money into promising agribusinesses. SEFAA operates with an impact-first approach, blending flexible financing with technical assistance. Typical investments range between $300,000 and $2.4 million, but SEFAA also provides training and capacity support to ensure long-term sustainability.
This model not only strengthens individual companies but also builds ecosystems that can sustain growth. For farmers, it translates into improved productivity, better market access, and more reliable income streams. For women and youth, often excluded from mainstream finance, it creates jobs and entrepreneurial opportunities.
Dorothy Nyambi, President and CEO of MEDA, which manages the Fund’s operations in Mauritius, highlighted the strategic alignment: “We are proud to partner with SEFAA and Sahel Capital, whose vision aligns with MEDA’s commitment to advancing economic opportunity through inclusive finance. With the support of the Mastercard Foundation Africa Growth Fund, this collaboration strengthens our shared mission to catalyze job creation for women and youth by financing SMEs and MSMEs.”
Why Agriculture Matters
Agriculture employs more than 60% of Africa’s workforce and contributes significantly to GDP across the continent, yet smallholder farmers—who account for most of the production—remain stuck in cycles of low productivity and limited market access. Agri-SMEs are often the missing link, providing inputs, processing, logistics, and distribution.
By closing financing gaps for these enterprises, SEFAA aims to tackle poverty at its roots. The ripple effect is profound: stronger SMEs mean stronger food systems, which in turn underpin food security, rural employment, and resilience against shocks such as climate change.
The Bigger Picture
The Mastercard Foundation Africa Growth Fund is a $200 million fund-of-funds initiative designed to support gender-diverse fund managers and channel capital to African SMEs. Its investment into SEFAA highlights a strategic bet on agriculture as a lever for inclusive growth.
SEFAA’s early success was made possible by KfW Development Bank’s pioneering support. But Mastercard’s entry adds weight and visibility, signaling growing investor confidence in the sector.
Looking Ahead
The challenge now is execution. Agriculture in Africa remains vulnerable to climate volatility, infrastructure gaps, and policy inconsistencies. Yet, with the right financing and technical support, agri-SMEs can unlock enormous potential.
For Sahel Capital, the $10 million is not just capital—it is validation of a model that blends commercial discipline with social impact. For Mastercard Foundation, it is another step toward its Young Africa Works strategy, which aims to enable 30 million young Africans to secure dignified work by 2030.
