Day: February 22, 2025

The funding aims to enhance agricultural productivity and food security in sub-Saharan Africa by supporting high-impact agribusinesses.

The investment package includes up to $20 million from Swedfund, $50 million from BII, and $15 million from Norfund.

These funds will enable AgDevCo to expand its portfolio of small and medium-sized enterprises (SMEs) across the region, with a focus on businesses that produce nutritious foods for local markets and high-value crops for export.

Tomas Wadström, Senior Investment Manager at Swedfund, emphasized the importance of improving food systems in sub-Saharan Africa.

He highlighted challenges such as limited financing, climate vulnerabilities, and inadequate infrastructure.

According to Wadström, investing across the food value chain can enhance resilience, increase production capacity, and create job opportunities, particularly for smallholder farmers.

Roman Frenkel, Director and Head of Food, Agriculture, and Natural Capital at BII, described the investment as a demonstration of BII’s commitment to strengthening food systems and promoting sustainable agricultural practices. 

Frenkel noted that by empowering agribusinesses, the initiative will contribute to economic growth and long-term development in rural communities across Africa.

Norfund’s Investment Manager, Donald Muchiri Kariuki, echoed similar sentiments, underscoring the role of agriculture in fostering inclusive economic growth.

With Norfund’s total investment in AgDevCo now reaching $35 million, Kariuki highlighted the importance of financing enterprises that empower smallholder farmers, promote local food systems, and address climate change challenges. 

He added that the collaboration with BII and Swedfund would help underserved communities transition out of poverty.

AgDevCo’s CEO, Daniel Hulls, welcomed the investment, emphasizing the need for patient and strategic capital to develop commercial agriculture in Africa.

Hulls expressed gratitude for the support from shareholders who recognize both the potential and challenges in the sector.

He stated that the additional funding strengthens AgDevCo’s role as a leading specialist investor, allowing the organization to scale its impact and drive agricultural transformation in the region.

The latest funding aims to expand the company’s reach and enhance financial accessibility for smallholder farmers.

This investment builds on BII’s previous support in 2023, which enabled SunCulture to distribute 9,000 solar irrigation systems to farmers across Kenya. 

The new funding will play a key role in scaling an innovative carbon financing initiative designed to lower upfront costs for farmers.

Through this scheme, up to 16,000 smallholder farmers are expected to benefit from affordable access to solar-powered irrigation technology.

Christopher Chijiutomi, Managing Director and Head of Africa at BII, emphasized the investment’s broader impact on agriculture and climate resilience.

“Our further investment in SunCulture will continue to reduce the upfront costs of solar irrigation systems, reaching more smallholder farmers in Kenya. This will increase farmland productivity and farmers’ incomes and improve their resilience to the impacts of climate change,” he stated.

Chijiutomi also highlighted the significance of the carbon financing model in attracting private-sector investment and fostering innovation.

“As the UK’s development finance institution, we are proud to support a pioneering carbon financing pilot that demonstrates feasibility and attracts private capital. It exemplifies our commitment to fostering innovation, enhancing food security, and improving access to clean energy for all,” he added.

The investment aligns with efforts to promote sustainable agriculture and climate-smart solutions, ensuring that smallholder farmers can access reliable and cost-effective irrigation systems while contributing to carbon reduction initiatives.