September 7, 2018

UK-based social impact and sub-Saharan-focused investor AgDevCo announced it has secured a further £55 million (US$71 million) from the British government’s Department for International Development (DFID).

This capital commitment, which was announced as part of Prime Minister Theresa May’s visit to Africa, is a major boost for the UK-based investor, which plans to expand its portfolio of sustainable investments in its targeted geographies.

Registered in 2009, AgDevCo began funding projects in 2010 with its first round of loans to six agricultural startups in Mozambique as part of the Beira Agricultural Growth Corridor (BAGC) project. Over the years, AgDevCo has grown to become one of the most active investors in African agriculture, building its portfolio to include investments in seven African countries geared toward an increase in sustainability, agricultural output, incomes, and a reduction of poverty. To-date, the fund has invested in 55 early-stage farming and ag processing companies, creating a business landscape supporting 7,500 jobs, and linking more than 425,000 smallholder farmers to reliable markets.

“Responsible commercial agriculture has a major role to play in creating more jobs, increasing trade and reducing poverty in Africa,” said Keith Palmer, chairman and founder, AgDevCo. “We welcome the announcement of the new funding by DFID, which will allow us to build further on the successes achieved by AgDevCo so far.”

Through its actions, AgDevCo has already raised the incomes of 1.6 million people through agriculture across Africa, and by 2025 UK funding will provide greater food security to 3.9 million people on the continent, according to a statement by DFID. Furthermore, by recycling capital recovered from successful investments, AgDevCo aims to attract additional private investments.

“AgDevCo’s ability to provide long-term capital and technical expertise means we are uniquely placed to partner with Africa’s leading entrepreneurs to build a thriving agriculture sector which can trade regionally and with the rest of the world,” said CEO Daniel Hulls.

Some of the recent investments made by the fund include:

~ A $1.1 million investment in the Zambian feedlot business, Ilobezi Limited.

~ A $4.5 million investment in partnership with Saise Farming Enterprises into a seed potato production project in the Northern Province of Zambia.

~ A $1.5 million investment through a debt and equity deal in Malwaian peanut processor Agri-Oils Limited.

~ A $5.05 million investment in Katito Farming Enterprises Ltd. – a key part of the firm’s Northern Zambia Agricultural Hub (NZAH).

~ And an $11.5 million investment in Jacoma Estates – a Malawian farming company specializing in the production of macadamia nuts, chilies, and paprika.

-Lynda Kiernan