March 2, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Impact and socially responsible investing has gained serious traction in recent years, however, it is estimated that there remains a $2.5 trillion (with a “t”) gap between current impact investing levels and what is needed to achieve the UN’s Sustainable Development Goals (SDGs).

As a specialist investor in early-stage African agribusinesses, UK-based AgDevCo envisions a thriving ag sector benefiting both people and planet. The firm works toward this goal by supporting endeavors as they grow, create jobs, produce and process food, and link farmers to markets, while striving for greater climate sustainability, and possible regenerative solutions.

To advance this work, the investor announced it has secured $90 million in new funding from the UK’s CDC Group (soon to be renamed British International Investment), Norfund, the Norwegian investment fund for developing countries,  and the U.S. International Development Finance Corporation (DFC).

Broken down, the CDC Group committed $50 million to the round, Norfund committed $20 million, and DFC committed the final $20 million.

“Securing investment from CDC, Norfund and DFC is a major milestone in AgDevCo’s history,” said Keith Palmer, founder and chairman, AgDevCo. “It is a strong endorsement of AgDevCo’s team and our strategy. We are excited that our vision is shared by our new funders, who recognise the important contribution that AgDevCo investments can make to productivity, sustainability and inclusivity in Africa.”

Palmer added, “Their funding marks the beginning of a partnership in which AgDevCo will use its sector specialism, drawing on our new funders’ networks and resources, to increase the number of impactful investments in African agriculture”

Launched in 2010, AgDevCo invests across a variety of sectors and crops including high-value exports crops such as avocados and macadamias, to animal proteins like poultry and fisheries. The firm has made a total of 80 investments since its founding, typically ranging between US$2 million – US$10 million, in sub-Saharan companies active throughout the food value chain, from primary agriculture to processing, and retail.

Currently, the firm’s portfolio stands at more than 40 companies across nine sub-Saharan nations – Ghana, Cote D’Ivoire, Kenya, Tanzania, Uganda, Rwanda, Zambia, Malawi, and Mozambique.

“I am proud to see how AgDevCo’s investing has boosted sustainable agriculture across Sub-Saharan Africa over the past 10 years, including deepening impact on smallholder farmers and SMEs,” commented Vicky Ford, UK Minister for Africa. “This new investment will bring continued growth, by enabling agribusiness SMEs to expand, improve farmer incomes, create new jobs and strengthen climate resilience across Africa.”

Tenbite Ermias, managing director for Africa with the CDC Group, noted how this investment reflects the group’s continued focus on climate change and climate finance – a central pillar to the group’s new five-year strategic plan to support emerging economies that are most vulnerable to the impacts of shifts in climate.

Ellen Cathrine Rasmussen, executive vice president of scalable enterprises, Norfund, added how this investment is a driver for sustainable development that is critical for job creation and economic growth.

“Norfund is very pleased to partner with AgDevCo to deliver on our joint mission: to create jobs and improve lives by investing in businesses that drive sustainable development,” said Rasmussen. “A thriving commercial African agriculture sector is vital for economic growth and job creation.”

She continued, “More than half of sub-Saharan Africa’s population work in agriculture, yet Africa does not produce enough food to feed the continent. The investment in AgDevCo will create jobs, increase food production, improve climate change resilience and promote gender equality. The AgDevCo team’s skills, networks and achievements are impressive – and we look forward to working with them.”

Another aspect was raised by Algene Sajery, vice president of external affairs and head of global gender equality initiatives with DFC, who added, “DFC is thrilled to support AgDevCo with a $20 million loan to bring additional capital to smallholder farmers and agricultural businesses in Africa, promoting food security for lower-income communities across the continent. DFC’s loan, alongside financing from our partner DFIs, will enable AgDevCo to link more farmers to markets and create jobs for underserved populations, with a focus on women farmers.”

*The content put forth by GAI News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. GAI and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.