Nigeria: Sahel Capital backs agribusiness firm sourcing cocoa and cashew
Sahel Capital has closed a $590,000 loan facility with Rasad Nigeria.
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Sahel Capital, an investment manager focused on the food and agriculture sectors across sub-Saharan Africa, has closed a $590,000 loan facility with Rasad Nigeria through its Social Enterprise Fund for Agriculture in Africa (SEFAA). The facility comprises $450,000 for working capital and $140,000 for capital expenditure.
Rasad Nigeria, a family-led agribusiness outfit based in Ogun State, aggregates cocoa and cashew from over 1,000 smallholder farmers and aggregators. The company supplies both local and international buyers.
“Rasad is making a meaningful impact in Nigeria’s cocoa sector by helping smallholder farmers access reliable markets. Their proactive sourcing strategy, including expansion into border communities, has helped the company maintain year-round procurement cycles and manage commodity price volatility,” said Deji Adebusoye, partner at Sahel Capital.
Sahel Capital currently manages two funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which has investments in SME agribusinesses in Nigeria, and SEFAA, which primarily provides structured debt to agribusiness SMEs across 13 countries in sub-Saharan Africa. Sahel Capital is also raising capital for a successor fund – Sahel Capital Agribusiness Fund II, which will focus on investment opportunities across West Africa.
Jackson, Etti & Edu advised SEFAA on this transaction.
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