In a bold move to combat malnutrition and strengthen food security across Sub-Saharan Africa, Incofin Investment Management has announced the first investments from its recently launched Nutritious Foods Financing Facility (N3F). This initiative, introduced earlier this year, aims to empower local food enterprises by providing them with the necessary financial and technical resources to scale their operations and reach underserved communities.
Through N3F, three promising companies have each secured debt financing ranging between USD 0.5 million and USD 1 million. This funding will enable them to increase their production capacity and expand their reach, providing nutritious food to lower-income households across the region. Additionally, these companies will benefit from customized technical assistance managed by the Global Alliance for Improved Nutrition (GAIN), ensuring that they can sustainably grow and continue to make a positive impact.
Empowering Local Enterprises: The First Beneficiaries
The first recipient of N3F’s support is Shalem Investment Ltd, a Kenyan small and medium-sized enterprise (SME) specializing in the production of fortified flours. Shalem works closely with smallholder farmers, aggregating their produce to create high-quality, fortified maize and wheat flour. These fortified products are essential in addressing micronutrient deficiencies, particularly in rural and low-income areas where access to a diverse diet is often limited. By providing an affordable and nutritious staple food, Shalem is playing a crucial role in improving the health and well-being of Kenyan communities.
Another beneficiary is Good Nature Agro, a Zambian SME that has made significant strides in the production of legumes and seeds. Partnering with over 15,000 smallholder farmers, Good Nature Agro is enhancing food security by increasing access to high-quality beans and groundnuts. The company’s innovative approach and rapid growth have earned it recognition as one of Africa’s fastest-growing companies by the Financial Times. With N3F’s investment, Good Nature Agro is well-positioned to further scale its impact, not just in Zambia but across the region.
The third company to receive funding is Camino Ruiz, a Kenya-based enterprise focused on distributing tilapia fish, a vital source of protein and essential nutrients for low-income communities. Partnering with Global Tilapia and local farmers’ groups, Camino Ruiz ensures a steady supply of this nutritious food to households in Kenya. The company also supports women’s groups in Homabay County, offering training and economic opportunities that empower women and youth, further amplifying its social impact.
A Step Towards Transforming Africa’s Food Systems
The announcement of these investments comes at a pivotal moment, coinciding with the Africa Food Systems Forum in Kigali, Rwanda. This event highlights the importance of innovative financing solutions in transforming food systems across the continent. N3F’s approach demonstrates that targeted investments can drive both financial returns and substantial social impact, particularly in regions where food security and nutrition are pressing concerns.
Myrtho Vlastou, Debt Director of Africa at Incofin Investment Management, emphasized the significance of these investments, stating, “These initial investments exemplify N3F’s mission to bridge the funding gap for SMEs in Sub-Saharan Africa. By supporting Shalem Investment Ltd and Good Nature Agro, we are fostering businesses that deliver critical nutritional benefits to their communities. Our focus remains on driving tangible, sustainable change where it is needed most.”
Roberta Bove, Senior Lead of Innovative Finance at GAIN, echoed these sentiments, adding, “We are incredibly pleased to announce the first investments of N3F, sampling the breadth of opportunities for investing in nutrition in Sub-Saharan Africa. We believe in the impact potential of these business models operating at different stages of nutritious foods value chains, and look forward to further invest across stages of various value chains through a food system approach.”
Looking Ahead: Expanding Impact Across the Continent
As N3F continues to grow, Incofin and GAIN are committed to scaling their efforts, collaborating with stakeholders to mobilize additional resources and expand their reach across the continent. The ultimate goal is to create a more resilient and nutritious food system that can meet the needs of Africa’s rapidly growing population.
Incofin’s mission to promote inclusive progress and sustainable transitions aligns with its broader impact investment strategy. With over USD 1.4 billion in assets under management, Incofin is dedicated to uplifting vulnerable and underserved communities through targeted investments in emerging and developing markets. By supporting initiatives like N3F, Incofin is paving the way for a healthier, more equitable future for millions of people in Sub-Saharan Africa.
GAIN, a Swiss-based foundation at the forefront of the fight against malnutrition, continues to play a critical role in this endeavour. By increasing consumer demand for nutritious foods and creating market incentives, GAIN is helping to reshape the global food landscape, one investment at a time.
