Burkina Faso: Agroserv secures funding for expansion and diversification

Social impact investor Oikocredit and impact investing group Investisseurs & Partenaires (I&P), along with BIO Invest and EDFI AgriFI, have announced an investment of €12.2 million in Agroserv. Oikocredit and I&P will jointly invest up to €6.2 million in Agroserv’s equity, while BIO and EDFI AgriFi will lend a further €6 million to the company. Sinergi Capital realised a successful exit after investing in 2017.

Agroserv, founded in 2008 by Siaka Sanon, processes and delivers maize-based products to companies and households in Burkina Faso. The company sources from and provides technical assistance to over 6,000 smallholder farmers.

With the new investment, Agroserv is building a new agro-processing plant in Bobo-Dioulasso, Burkina Faso. The plant aims to increase its processing capacity to over 160 tonnes daily and to diversify into higher-value-added products, including high-energy flour, pre-cooked maize meal, and soya protein. These products will be sold to households, the government for school canteens, and the World Food Programme. Smallholder farmers supplying Agroserv are projected to increase to 12,000 (from 6,000 today) through deeper collaboration with local cooperatives and the reinforcement of direct sourcing.