AgDevCo, a specialist investor focused on agriculture in sub-Saharan Africa, has secured an investment of USD 85 million from British International Investment (BII), Sweden’s Development Finance Institution Swedfund, and the Norwegian Investment Fund Norfund to support African farmers. The funding aims to address the critical challenges facing Africa’s agricultural sector, including limited access to financing, climate change vulnerabilities, poor infrastructure, and weak market linkages, which have hindered growth and left millions of smallholder farmers struggling to improve their livelihoods.
This significant investment will help AgDevCo provide long-term capital and support to agribusinesses in the region, particularly small and medium-sized enterprises (SMEs) in food production, processing, and distribution. BII’s contribution of up to USD 50 million, alongside USD 20 million from Swedfund and USD 15 million from Norfund, will allow AgDevCo to expand its portfolio and support the growth of agribusinesses across the agricultural value chain, from primary production to logistics. This includes fostering sustainable practices and enhancing resilience within the sector.
The partnership marks a continuation of BII’s commitment to the region. Having previously invested USD 50 million in AgDevCo in 2022, BII becomes the largest external investor in the organization. AgDevCo’s approach of offering flexible, long-term capital helps businesses overcome local financing challenges, driving productivity, efficiency, and sustainable growth in rural economies.
AgDevCo’s impact is already evident. In 2023, the organization supported over 2.4 million small-scale farmers, traders, and customers, with 29% of the beneficiaries being women. Furthermore, more than 28,000 jobs were created through its portfolio companies. The organization reports that for every dollar invested, USD 2.50 in additional income was generated for rural and peri-urban households, providing opportunities in sectors such as poultry farming and improved crop production.
With the new investment, AgDevCo plans to support four million farmers and sustain 60,000 jobs annually by 2030. This funding will allow AgDevCo to scale its operations, ensuring that agribusinesses continue to grow in a sustainable and impactful manner.
The investment also supports AgDevCo’s focus on climate-positive agriculture. More than half of AgDevCo’s primary production investments already incorporate regenerative farming practices, which not only promote soil health and biodiversity but also contribute to carbon sequestration and climate adaptation. This is part of a broader effort to build resilience against climate change and ensure the long-term viability of the agricultural sector in sub-Saharan Africa.
Roman Frenkel, Director and Head of Food, Agriculture, and Natural Capital at BII, highlighted the importance of this partnership, stating that it demonstrates BII’s commitment to supporting agribusinesses that drive sustainable practices and strengthen food systems in sub-Saharan Africa. He emphasized that this collaboration lays the foundation for long-term development and prosperity across the region.
Swedfund’s Senior Investment Manager, Tomas Wadström, pointed out that the agricultural sector in sub-Saharan Africa faces numerous challenges, including limited access to financing and climate vulnerabilities. He explained that investing in this sector helps build resilience, improves food security, and fosters job creation, all of which are essential to reducing poverty.
Donald Muchiri Kariuki, Investment Manager at Norfund, echoed this sentiment, emphasizing the importance of supporting smallholder farmers in driving inclusive and sustainable economic growth in the region. He stated that agriculture is a key driver of economic development in sub-Saharan Africa and that investing in local food systems is crucial for long-term growth.
AgDevCo’s CEO, Daniel Hulls, acknowledged the challenges facing African agriculture but emphasized the opportunities for growth and development. He expressed gratitude for the support of shareholders who recognize the potential of the sector and the need for strategic, patient investment. With this new funding, AgDevCo is well-positioned to expand its impact, helping to shape the future of agriculture in sub-Saharan Africa by supporting agribusinesses that are driving positive change in the sector.
