The “Listed SME Debt Fund,” spearheaded by FSD Africa—a development finance institution supported by the UK government—aims to mobilize KSH 38.85 billion ($300 million) to bolster local businesses and drive economic growth.

This fund seeks to attract both local and international investors to Kenya’s SME sector, supporting job creation and fostering economic development.

Kenyan SMEs often struggle with interest rates as high as 40%, significantly hindering their growth.
The new fund will address this challenge by providing affordable credit, reducing borrowing costs, and enabling a diverse range of businesses to thrive.
Locally listed and managed, the fund will also encourage investments from Kenyan pension funds and institutional investors, ensuring benefits for both portfolios and the broader economy.
The fund’s first round of fundraising aims to raise $100 million, with $240 million targeted from Kenyan institutional investors and $60 million from international backers.

It is expected to support 10,000 SMEs, impact 50,000 households, and create close to 90,000 jobs. With its broad sectoral focus—ranging from agriculture to technology—the fund will lower capital costs for entrepreneurs across industries.

Neil Wigan, British High Commissioner to Kenya, highlighted the fund’s inclusive approach, emphasizing its potential to empower young people, women, and persons with disabilities—groups often excluded from traditional financial systems.

“This initiative aims to uplift the hardworking hustlers of Kenya by making credit more accessible and affordable,” Wigan said.

Kenyan pension funds, which collectively manage over $30 billion in assets, have historically underutilized alternative investment opportunities.
FSD Africa’s Listed SME Debt Fund offers these institutions a new avenue to diversify portfolios, ensuring stable returns while mitigating risks associated with SME lending.
Mark Napier, CEO of FSD Africa, underscored the critical role SMEs play in Kenya’s economy, noting that they constitute 98% of businesses and significantly contribute to employment.

Expanding access to credit, he stated, is key to enabling these enterprises to grow, create jobs, and compete globally.

“This fund will unlock opportunities for SMEs to thrive locally and expand internationally,” Napier remarked.

The Listed SME Debt Fund is set to play a pivotal role in strengthening Kenya’s economic resilience by bridging the financing gap for SMEs and fostering inclusive growth.

The partnership aims to enhance sustainable farming practices and increase local food production in Kenya.

Founded in 2010, Agventure focuses on helping Kenyan farmers adopt sustainable and regenerative agricultural methods.

The organization unites farmers, researchers, educators, and entrepreneurs to promote practices that improve soil health and enhance food security.

Currently, Agventure supplies over 45,000 tonnes of food crops annually to the local market, including wheat, barley, maize, canola, sunflower, and legumes such as green peas, chickpeas, and fava beans.

Through its Centre of Excellence, Agventure trains more than 700 small and medium-sized farmers across Kenya.

The program emphasizes crop rotation, particularly the integration of canola, to improve soil health.

To support these farmers, Agventure guarantees the purchase of their canola harvest, which is processed and sold under the Pure Mountain brand in Kenya.

The $9.5 million investment from AgDevCo will allow Agventure to scale up its canola oil production and purchase more produce from its network of outgrower farmers.

Additionally, the funds will help establish Agventure Seed, a platform that provides high-quality certified seeds to Kenyan farmers.

Rebecca Sankar, AgDevCo’s managing director for East Africa, emphasized the significance of the investment:

“We are excited to be supporting Agventure in its journey to add more value to commodity crops, increasing the availability of high-quality, locally produced food for the domestic market and reducing reliance on imports.”

Agventure CEO Don White expressed optimism about the partnership, stating:

“Agventure is looking forward to working with AgDevCo to expand and strengthen our business, enabling more farmers to adopt regenerative agriculture solutions.”

According to Ashish Thakkar, founder of Mara Group and a leading British-East African entrepreneur, the fund, which is expected to make its first investments within three to six months, will target key tech ecosystems across the continent.

The deal, sealed during the Future Investment Initiative in Saudi Arabia, targets vibrant startup ecosystems in South Africa, Nigeria, Kenya, Ivory Coast, and Egypt.

With the youngest and fastest-growing population globally, Africa is turning to technology to address challenges like infrastructure gaps.

Key cities like Cape Town, Johannesburg, Nairobi, and Ebene are emerging as tech hubs, as noted in a report by New World Wealth and Platform45.

Startupbootcamp, a global accelerator network with a portfolio worth $6 billion, is a critical partner in the venture.

Thakkar highlighted the importance of scale in investing, stating:

“We’ve engaged in extensive angel investments as a group, but achieving economies of scale is crucial.”

The fund will focus on early-stage and pre-IPO rounds, with plans to evolve into multi-stage investments.

“This is a strong start,” Thakkar said. “Our long-term vision includes creating both early and later-stage funds.”

Thakkar, who co-founded Atlas Mara Ltd., views the initiative as a pivotal opportunity to strengthen Africa’s tech ecosystems.

ETG’s portfolio spans various sectors, including agricultural inputs, logistics, supply chain optimization, digital transformation, and energy.

The package includes $65 million from the Bank’s own resources and an additional $10 million in concessional co-financing from the Agri-Food Catalytic Financing Mechanism (ACFM).

This Special Fund, supported by Canada’s Department of Foreign Affairs, Trade, and Development, focuses on empowering gender-oriented and underserved agricultural SMEs in Africa.

The funds will be allocated to ETG’s Sustainable Linked Loan facility, which aims to strengthen its core value chain assets.

The financing will target ETG’s operations in 14 African nations, including Ghana, Ethiopia, Kenya, Nigeria, and Mozambique.

These funds will enhance ETG’s processing and packaging facilities, improve warehouse infrastructure, and provide farmers with fertilizers and other agricultural inputs.

Additionally, the financing may be extended to up to 28 African countries as needs arise.

The Sustainable Linked Loan facility incorporates annual sustainability performance indicators focusing on decarbonization, reforestation, zero deforestation, farmer support services, and gender empowerment.

Non-compliance with these targets carries direct financial repercussions, encouraging adherence to sustainability goals.

ETG aims to engage 600,000 smallholder farmers by 2027, with a focus on including women, who are expected to comprise 25% of the beneficiaries.

Training on sustainable farming practices and enhanced access to resources will be central to this initiative. The project also seeks to boost exports from regional member countries and promote intra-regional trade within key African economic blocs such as ECOWAS, SADC, and EAC.

Dr. Beth Dunford, Vice President for Agriculture, Human, and Social Development at the Bank, highlighted the importance of this initiative:

“We are thrilled to expand our partnership with ETG and support its commitment to strengthening women’s economic development in Africa. Access to finance and training in agriculture will contribute to food security and economic growth.”

The financing aligns with the African Development Bank’s ‘High 5’ priorities, particularly “Feed Africa,” “Integrate Africa,” and “Improve the Quality of Life for the People of Africa,” as well as the Bank’s Ten-Year Strategy 2024–2033.

It aims to transform Africa’s agricultural sector into a commercially viable industry, fostering food self-sufficiency across the continent.

Richard Ofori-Mante, Director of the Agricultural Finance and Rural Development Department at the Bank, emphasized the broader implications of the financing:

“This transaction not only promotes sustainable practices within ETG’s operations but also amplifies their influence on the supply chain, contributing significantly to the Sustainable Development Goals.”

This ambitious €400 million financing package, which includes a €197 million sustainability-linked loan from IFC and €203 million from a consortium of international banks led by JP Morgan, aims to solidify Morocco’s standing as a key player in regional and global trade.

The project is set to substantially boost Tanger Med’s capacity, with a goal to handle over 1 million trucks annually, a nearly twofold increase from the 477,000 trucks processed in 2023.

This financing arrangement represents Morocco’s inaugural sustainability-linked loan and is one of the pioneering deals in port infrastructure across emerging markets.

Among its sustainability objectives, the expansion focuses on increasing gender diversity and incorporating renewable energy into its operations.

Loubna Ghaleb, Board Member and Director of Strategy at Tanger Med Group emphasized the port’s vital role in Morocco’s trade dynamics, stating that the expansion will facilitate higher truck capacity, support export growth in agribusiness and industrial sectors, and strengthen Morocco’s trade connections with Europe.

MIGA’s involvement includes a non-honoring guarantee on the commercial loan, which provides up to 15 years of protection for lenders if the state-owned enterprise fails to meet its financial obligations. This ensures investor confidence and promotes further investment.

David Tinel, IFC’s Regional Manager for the Maghreb, highlighted the port’s strategic significance, noting that the project positions Morocco as a global logistics hub linking Europe, Africa, and the Americas.

He also mentioned that the expansion would attract additional investment in Morocco’s infrastructure, particularly as the country prepares for the 2025 Africa Cup of Nations and 2030 FIFA World Cup.

As Africa’s leading container port with links to 180 ports across 70 countries, Tanger Med is committed to advancing sustainability and gender equity.

Plans include increasing green energy use from solar and wind sources and enhancing climate resilience by elevating breakwaters and extending quays to support larger, eco-friendly vessels.

A focus on gender diversity is also integral to the expansion, with efforts to boost female representation in management positions.

Tanger Med’s extensive logistics zones host over 1,300 companies across sectors such as aeronautics, textiles, automotive, and agribusiness.

In 2023, these zones will generate a business volume of over USD 15 billion and support approximately 120,000 jobs.

The expansion is expected to foster job creation, boost economic development, and enhance Morocco’s trade networks.