AgDevCo makes follow-on investment in equipment leasing company
AgDevCo has announced a $7.2 million investment into EFAfrica Group.
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Specialist agricultural investor AgDevCo has announced a $7.2 million follow-on investment into its longstanding portfolio company, EFAfrica Group (EFAG).
EFAG is an equipment leasing company focused on small and medium-sized enterprises and farmers in Africa. The company serves over 1,500 entrepreneurs across Kenya, Tanzania and Zambia, many of whom lack the formality and collateral requirements sought by banks. Popular leases include trucks, tractors and other agricultural equipment, with a typical value of between $10,000 and $80,000.
AgDevCo’s latest investment, a structured long-term loan, allows EFAG to offer larger leases to agribusiness corporates and farming services providers.
John Jakobsson, investment director at AgDevCo said: “We are pleased to back EFAG’s continued growth as it expands its footprint and product offering, reaching thousands of entrepreneurs, supporting sustainable economic growth in rural areas, and contributing to regional food security.”
Nicomed Bohay, chief operating officer of EFAfrica Group, commented: “This partnership allows EFAG to deepen its role in supporting agricultural transformation through mechanisation in East and Southern Africa. By providing the right tools and financing solutions, we are empowering businesses that drive rural development and strengthen regional food security.”
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