AgDevCo receives $85m commitment from DFIs
AgDevCo has received a joint $85 million investment from Swedfund, BII and Norfund.
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Africa-focused agribusiness investment firm AgDevCo has received a joint $85 million investment from Swedfund, British International Investment (BII) and Norfund.
The equity investment comprises up to $20 million from Swedfund, $50 million from BII and $15 million from Norfund, with the funding aimed at supporting high-impact agribusinesses to increase productivity and improve food security in rural areas.
The investment will enable AgDevCo to expand its portfolio of small and medium-sized enterprises (SMEs) across countries in sub-Saharan Africa. This will include agribusinesses producing nutritious foods for local consumption and high-value export crops.
Tomas Wadström, senior investment manager at Swedfund, said: “Improved food systems is one of Swedfund’s focus areas. The agricultural sector in sub-Saharan Africa faces numerous challenges such as limited access to financing, climate vulnerabilities, and poor infrastructure. Therefore, it is important to invest across the food value chain to boost resilience, adaptability, and food security. This in turn will contribute to poverty reduction through job creation and better production capacities, not least for smallholder farmers.”
Roman Frenkel, director and head of food, agriculture and natural capital at BII, commented: “This investment underscores BII’s commitment to empowering agribusinesses that are driving sustainable practices, strengthening food systems, and building economic opportunities for rural communities. Through this collaboration, we are not only enhancing food security but also laying the foundation for long-term development and prosperity across sub-Saharan Africa. We are excited to deepen our partnership with AgDevCo and work alongside Norfund and Swedfund to transform food systems in Africa."
Donald Muchiri Kariuki, investment manager at Norfund, added: “At Norfund, we recognise agriculture as a cornerstone for fostering inclusive and sustainable economic growth in sub-Saharan Africa. Our $15 million to bring our total investment in AgDevCo to $35 million, reflects our unwavering commitment to supporting enterprises that empower smallholder farmers, enhance local food systems, and build resilience against climate change. By addressing the financing gaps and driving sustainable practices, this partnership is not only a catalyst for increased productivity but also a vital step toward lifting underserved communities out of poverty. Together with BII, Swedfund, and AgDevCo, we are proud to contribute to a brighter, more secure future for millions across the region.”
Daniel Hulls, CEO at AgDevCo, said: “Developing commercial agriculture in Africa requires patient and strategic investment. We are fortunate to have shareholders who recognise the huge potential as well as the challenges of investing in the sector. This latest capital injection from BII, Norfund, and Swedfund strengthens AgDevCo’s position as a leading specialist investor, enabling us to grow our portfolio and drive positive impact at scale."
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