CDC Group, Norfund and DFC have invested a total of $90 million through AgDevCo, a specialist investor in early-stage African agribusinesses to grow investment activities in agriculture across Sub-Saharan Africa.
The new funding comprises of $50 million of equity from the UK’s development finance institution, CDC Group, $20 million of equity from the Norwegian investment fund for developing countries, Norfund and $20 million of senior debt from U.S. International Development Finance Corporation (DFC).
The new funding follows the announcement of supplementary funding of up to $5.4 million from CDC, Norfund and the UK’s Foreign, Commonwealth and Development Office (FCDO) for AgDevCo’s integrated technical assistance facility.
— AgDevCo (@AgDevCo) February 24, 2022
What they are saying about the funding
Keith Palmer, AgDevCo’s founder and Chairman, said the secured investment from CDC, Norfund and DFC is a major milestone in AgDevCo’s history.
He said, “We are excited that our vision is shared by our new funders, who recognise the important contribution that AgDevCo investments can make to productivity, sustainability, and inclusivity in Africa.
“Their funding marks the beginning of a partnership in which AgDevCo will use its sector specialism, drawing on our new funders’ networks and resources, to increase the number of impactful investments in African agriculture.”
Vicky Ford, UK Minister for Africa expressed pride to see how AgDevCo’s investing has boosted sustainable agriculture across Sub-Saharan Africa in the past decade including deepening impact on smallholder farmers and SMEs.
According to him, the new investment will bring continued growth, by enabling agribusiness SMEs to expand, improve farmer incomes, create new jobs and strengthen climate resilience across Africa.
Tenbite Ermias, CDC’s Managing Director for Africa also noted that the investment reinforces long-term commitment to investing in key sectors in Africa including agriculture, which is critical for creating jobs, promoting gender equality and supporting people to build a better life for themselves and their families.
Ellen Cathrine Rasmussen, Executive Vice President of Scalable Enterprises in Norfund said, “Norfund is very pleased to partner with AgDevCo to deliver on our joint mission: to create jobs and improve lives by investing in businesses that drive sustainable development. A thriving commercial African agriculture sector is vital for economic growth and job creation. More than half of Sub-Saharan Africa’s population.”
Algene Sajery, DFC’s Vice President of External Affairs and Head of Global Gender Equity Initiatives, said, “DFC is thrilled to support AgDevCo with a $20 million loan to bring additional capital to smallholder farmers and agricultural businesses in Africa, promoting food security for lower-income communities across the continent. DFC’s loan, alongside financing from our partner DFIs, will enable AgDevCo to link more farmers to markets and create jobs for underserved populations, with a focus on women farmers.”
What you should know
AgDevCo was established in 2009 with a vision to thriving commercial African agriculture sector that benefits people, economies, and the environment by providing investment capital and technical assistance to grow businesses across the agricultural value chain.
The new funding builds on the original endowment funding provided by the UK government which helped establish AgDevCo over the past decade.