AgDevCo, a leading investment firm focused on Africa’s agricultural sector, has secured $32 million in funding from the UK’s Foreign, Commonwealth, and Development Office (FCDO) to launch AgDevCo Ventures. This new initiative will support early-stage agribusinesses across Africa, providing vital financial backing for small and medium enterprises (SMEs) often overlooked by private investors.
AgDevCo Ventures aims to support a segment of small and medium-sized enterprises (SMEs) overlooked by most private investors due to perceived risks and costs. The venture will provide investments of $1 million to $3 million to foster job creation, increase smallholder farmer incomes, and enhance climate resilience. It will initially focus on East African countries such as Kenya, Uganda, Tanzania, and Rwanda, with intentions to expand throughout Africa.
AgDevCo Ventures is committed to inclusivity, with a focus on African and female-owned businesses. It will operate independently as a specialized arm of AgDevCo, headquartered in Nairobi, and plans to raise an additional $25 million to begin operations by 2025.
This move signals AgDevCo’s return to early-stage SME investment, a space it last engaged with between 2009 and 2017. AgDevCo’s portfolio includes significant investments in agribusinesses across sub-Saharan Africa, with $210 million invested in 38 projects across 11 countries as of June 2024.
The UK government, through the FCDO, remains a key partner in AgDevCo’s efforts to promote sustainable agribusiness development. Lord Collins of Highbury emphasized the importance of stable food markets and job creation, underscoring the UK’s commitment to supporting African farmers and combating malnutrition.
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