The investment will support companies that often struggle to secure commercial loans because of their size, limited collateral, seasonal earnings, and exposure to agricultural and climate risks.

AgDevCo Ventures was established by AgDevCo, an investment firm focused exclusively on African agriculture.

Managed by a dedicated team in Nairobi, the vehicle invests between $1 million and $3 million in companies operating in Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

Its mandate covers agricultural inputs, production, processing, aquaculture, livestock, agricultural technology, logistics, and food and beverage businesses.

The vehicle provides mezzanine loans with terms of up to eight years, including extended grace periods. This structure gives businesses more time to invest and generate revenue before making substantial repayments. It can also help founders avoid surrendering voting rights while keeping collateral available for other borrowing.

Eligible companies must have operated for at least three years and already generate revenue, although they do not need to be profitable.

AgDevCo Ventures generally targets businesses with no more than $5 million in gross assets and annual revenue below $7.5 million.

Investee companies can also receive technical assistance covering financial management, agronomy, environmental and social practices, climate initiatives, and smallholder supply programs.

Small Foundation supported AgDevCo during its early development and has now returned as a funder of its new investment vehicle.

The value of its latest commitment was not disclosed. According to AgDevCo CEO and AgDevCo Ventures Chair Daniel Hulls, the funding helped the vehicle reach the point where it could start deploying capital.

“Its capital commitment — and the conviction and speed behind it — took us over the line to begin investing,” Hulls said.

Small Foundation’s capital forms part of a blended finance model combining concessional funding and risk-bearing capital from development partners.

AgDevCo lists the UK Foreign, Commonwealth and Development Office, the International Fund for Agricultural Development, the Isenberg Family Charitable Foundation, A to Z Impact, and Netri Fundación Privada among the vehicle’s other funders.

AgDevCo Ventures was initially announced as a planned $50 million facility, with the UK government expected to provide more than half of the capital.

At the time, UK Minister for Africa Lord Collins of Highbury highlighted the difficulty that smaller agricultural companies face when seeking investment.

“Without access to funding, no matter the drive and ingenuity, too many businesses can’t get off the ground,” he said.

The funding responds to a major capital shortage across Africa’s agricultural sector.

An April 2026 report published by the Food and Agriculture Organization and other African and international institutions found that agriculture receives less than 4% of total bank credit on the continent.

Annual foreign direct investment in food and agriculture is often below $2 billion. Although Africa recorded 99 blended finance transactions worth $3 billion between 2020 and 2023, much of that capital went to larger companies rather than smaller agricultural enterprises.

An IFAD investment assessment projected that AgDevCo Ventures could benefit nearly 250,000 people, including more than 121,000 smallholder farmers.

It also estimated that the vehicle could mobilize about $85 million in additional capital and support approximately $190 million in export sales over its lifetime.