By Abdullahi Lukman
A consortium of international development finance institutions has announced a substantial $85 million investment in AgDevCo, an agribusiness investment firm operating in sub-Saharan Africa.
The funding, led by British International Investment (BII) with $50 million, and including $20 million from Swedfund and $15 million from Norfund, aims to bolster agricultural productivity and food security across the region.
The investment will enable AgDevCo to expand its portfolio of small and medium-sized enterprises (SMEs), focusing on businesses producing nutritious food for local markets and high-value export crops.
This initiative addresses critical challenges in sub-Saharan African food systems, including limited access to finance, climate vulnerabilities, and inadequate infrastructure.
BII’s Director and Head of Food, Agriculture, and Natural Capital, Roman Frenkel, emphasized the investment’s alignment with BII’s commitment to strengthening food systems and promoting sustainable agriculture.
He highlighted the potential for economic growth and long-term rural development.
Swedfund’s Senior Investment Manager, Tomas Wadström, stressed the importance of investing across the entire food value chain to enhance resilience, boost production, and create jobs, particularly for smallholder farmers.
Norfund’s Investment Manager, Donald Muchiri Kariuki, noted the critical role of agriculture in driving inclusive economic growth and underscored the importance of empowering smallholder farmers and addressing climate change.
This brings Norfund’s total investment in AgDevCo to $35 million.
AgDevCo CEO, Daniel Hulls, welcomed the investment, emphasizing the need for patient capital to develop commercial agriculture in Africa.
He expressed gratitude for the support and highlighted the funding’s role in scaling AgDevCo’s impact and driving agricultural transformation.
