Nigeria: Sahel Capital in agriculture deal
Sahel Capital has extended a $500,000 working capital loan to Agriarche.
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Sahel Capital, through its Social Enterprise Fund for Agriculture in Africa (SEFAA), has extended a $500,000 working capital loan to Agriarche.
Agriarche is an enterprise dedicated to improving market access and fostering stronger connections between smallholder farmers and FMCG companies in Nigeria, transforming the country’s fragmented commodity value chains.
This investment will strengthen Agriarche’s capacity to expand market access for more smallholder farmers, ensure fair and stable pricing for farmers and optimise the agricultural supply chain for FMCG in Nigeria.
“Agriarche plays a critical role in enhancing smallholder farmers’ incomes in Nigeria,” said Deji Adebusoye, partner at Sahel Capital. “The agricultural value chain remains highly fragmented, with farmers located far from economic hubs, leading to the emergence of multiple intermediaries before produce reaches FMCG companies. Through technology, Agriarche has significantly shortened this distance, allowing farmers to receive fairer prices and reinvest larger amounts into subsequent planting cycles. By partnering with Agriarche, FMCG companies can drive meaningful impact for smallholder farmers, who remain the backbone of Nigeria’s food system.”
Sahel Capital currently manages two funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which has investments in SME agribusinesses in Nigeria; and the Social Enterprise Fund for Agriculture in Africa (SEFAA), which provides primarily 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.
Duale, Ovia & Alex-Adedipe (DOA) provided legal advice to SEFAA on this transaction.
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