By Gerelyn Terzo, Global AgInvesting Media
The Mastercard Foundation is stepping up its commitment to smallholder farmers across sub-Saharan Africa. Through a fund managed by the Mennonite Economic Development Associates (MEDA), the Foundation has committed $10 million to the Social Enterprise Fund for Agriculture in Africa (SEFAA), a private equity impact vehicle overseen by Lagos, Nigeria-based Sahel Capital. SEFAA is designed to back agribusinesses that improve the livelihoods of smallholder farmers by strengthening food systems and opening new income streams. The fund aims to create more than 10,000 jobs for women and young people in over a dozen countries.
With the proceeds, SEFAA plans to widen its support for agri-SMEs that show strong business potential but struggle to access conventional capital. By opening this channel of finance, the fund is positioned to strengthen opportunities for smallholder farmers and play a role in reducing poverty across sub-Saharan Africa.
Launched in 2021 with support from KfW Development Bank, SEFAA offers flexible financing, primarily structured debt, but also equity or quasi-equity, to early-stage and growth-oriented agri-businesses in sub-Saharan African countries. The fund targets businesses that can lift smallholder farmers by boosting yields, connecting them to stronger markets and raising household incomes. Alongside financing, it also provides a built-in Technical Assistance Facility intended to help these entrepreneurs scale sustainably over the long term.
Sahel Capital Managing Partner Mezuo Nwuneli stated, “This $10 million commitment from the Mastercard Foundation Africa Growth Fund, through MEDA Mauritius, is a testament to our team’s hard work and the impactful work we are doing. It will be instrumental in accelerating our efforts to improve the income opportunity for SHFs by enabling the agri-SMEs that engage with them, further strengthening our position as a leading fund in the food and agriculture sector in Africa.”
MEDA President and CEO Dorothy Nyambi said, “We are proud to partner with SEFAA and Sahel Capital, whose strategic vision aligns with MEDA’s commitment to advancing economic opportunity through inclusive finance. With the support of the Mastercard Foundation Africa Growth Fund, this collaboration strengthens our shared mission to catalyze job creation for women and youth by financing SMEs and MSMEs, while also helping to build the enabling ecosystems they need to thrive sustainably.”
Through the capital injection, SEFAA will now be capable of deepening its influence on food systems to more African nations, including Nigeria, Ghana, Kenya, Uganda and Côte d’Ivoire, among others. As smallholder farmers gain greater access to resilient agribusiness partners, the ripple effects could include improved supply chains, heightened food security and broader rural economic empowerment.
Structured as a fund of funds, the Mastercard Foundation Africa Growth Fund represents a catalyst for change. With US$200 million behind it, the Mastercard Foundation partners with African investment funds to back early-stage, growth-oriented SMEs across the continent, with a particular focus on women and youth entrepreneurship.
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