AgDevCo, a company that invests in farming and agriculture in Africa, has announced it’s raised $32 million from the UK’s Foreign, Commonwealth, and Development Office (FCDO).
This money will go into a new project called AgDevCo Ventures, which will support new and growing agribusinesses in Africa.
The goal is to help these businesses grow by giving them important financial support. AgDevCo Ventures will make smaller investments, from $1 million to $3 million, to help businesses that are often ignored by other investors because of perceived risks.
The project aims to create more jobs, boost incomes for small farmers, and improve climate resilience across Africa. It will first focus on East African countries like Kenya, Uganda, Tanzania, and Rwanda, with plans to expand to other regions later.
AgDevCo Ventures will have a special team based in Nairobi and will work with experts from around the organization. The fund will feature many African and female-owned businesses to promote inclusivity and gender equality.
The company is also looking to raise another $25 million from other investors to start operations by early 2025. This move marks AgDevCo’s return to investing in smaller businesses, after having focused on larger, established ones since 2017.
Lord Collins of Highbury, the UK Minister for Africa, highlighted the importance of supporting farmers and creating jobs, saying, “Giving hardworking farmers stable incomes, creating jobs for the youth, and helping end malnutrition are vital goals.” The UK government will contribute more than half of the $50 million total for AgDevCo Ventures, with the rest coming from additional investors.
As of June 2024, AgDevCo has invested $210 million in 38 projects across 11 sub-Saharan African countries. Some of its investments include $7.7 million in a Kenyan agribusiness called Agris, $7.2 million in Pan-African Hatch Africa, and $10 million in Côte d’Ivoire’s Cashew Coast.
