- The joint commitment will support small and medium-sized agribusinesses to increase productivity and expand food systems across sub-Saharan Africa.
- The platform has already benefited over two million smallholder farmers, improving their livelihoods, climate resilience and food security.
- BII’s follow-on investment of up to $50 million brings its total investment to $100 million, making it the largest external investor in AgDevCo.
British International Investment (BII), the UK’s development finance institution and impact investor, alongside Swedfund and Norfund, have announced a joint $85 million investment in AgDevCo, the specialist investor transforming agriculture across sub-Saharan Africa. The equity investment comprises up to $50 million from BII, $20 million from Swedfund, and $15 million from Norfund, with the funding aimed at supporting high-impact agribusinesses to increase productivity and improve food security in rural areas.
The investment will enable AgDevCo to expand its portfolio of small and medium-sized enterprises (SMEs) across countries in sub-Saharan Africa. This will include agribusinesses producing nutritious foods for local consumption and high-value export crops.
Africa faces complex and urgent challenges in its agricultural sector, including limited financing, climate vulnerabilities, low market access and underdeveloped value chains. AgDevCo works to address these issues by investing across the agricultural value chain, from primary production to logistics, ensuring sustainable practices and improved resilience.
In 2023, over 2.4 million small-scale farmers, customers, and traders of which 29 per cent were women benefited from markets and income opportunities linked to AgDevCo’s portfolio companies. Furthermore, over 28,000 jobs were directly supported in the same year.
AgDevCo reports that each dollar invested to date has already generated $2.50 of higher incomes for rural and peri-urban households through employment and other income-generating opportunities, such as being able to rear improved breeds of backyard chickens. With this investment, the platform expects its portfolio to be delivering benefits for four million farmers, as well as supporting 60,000 jobs annually by 2030.
AgDevCo’s model overcomes the financing gap by providing flexible, long-term capital and support to businesses that otherwise would not have access to traditional sources of funding. This approach allows agribusinesses to scale sustainably while overcoming local financing challenges, driving productivity and efficiency in rural economies.
The investment also supports the DFIs’ commitment to advancing climate-positive investments and reducing carbon emissions across sub-Saharan Africa. Well over half of AgDevCo’s primary production investments implement some form of regenerative agriculture, promoting climate adaptation and resilience alongside significant amounts of carbon sequestration.
The UK Government has been a long supporter of AgDevCo since its establishment in 2009. Lord Collins of Highbury, Parliamentary Under-Secretary of State for Africa, said: “I’m delighted to see BII building on its existing investments in AgDevCo, alongside other development finance institutions. It’s a great example of how British private investment can deliver economic growth across Africa. Not only will this increased investment in African agribusinesses improve the livelihoods of farmers in sub-Saharan Africa, it will also contribute to food security across the continent and strengthen UK supply chains.”
BII’s new $50 million commitment combined with a previous $50 million investment made in 2022, makes it the largest external investor in AgDevCo. Commenting Roman Frenkel, Director and Head of Food, Agriculture and Natural Capital at BII, said: “This investment underscores BII’s commitment to empowering agribusinesses that are driving sustainable practices, strengthening food systems, and building economic opportunities for rural communities. Through this collaboration, we are not only enhancing food security but also laying the foundation for long-term development and prosperity across sub-Saharan Africa. We are excited to deepen our partnership with AgDevCo and work alongside Norfund and Swedfund to transform food systems in Africa.”
Tomas Wadström, Senior Investment Manager at Swedfund, said: “Food Systems is one of Swedfund’s focus areas. The agricultural sector in sub-Saharan Africa faces numerous challenges such as limited access to financing, climate vulnerabilities, and poor infrastructure. Therefore, it is important to invest across the food value chain to boost resilience, adaptability, and food security. This in turn will contribute to poverty reduction through job creation and better production capacities, including for smallholder farmers”.
Donald Muchiri Kariuki, Investment Manager at Norfund, said: “At Norfund, we recognise agriculture as a cornerstone for fostering inclusive and sustainable economic growth in sub-Saharan Africa. Our $15 million investment, which brings our total investment in AgDevCo to $35 million, reflects our unwavering commitment to supporting enterprises that empower smallholder farmers, enhance local food systems, and build resilience against climate change. By addressing the financing gaps and driving sustainable practices, this partnership is not only a catalyst for increased productivity but also a vital step toward lifting underserved communities out of poverty. Together with BII, Swedfund, and AgDevCo, we are proud to contribute to a brighter, more secure future for millions across the region.”
Daniel Hulls, CEO at AgDevCo, said: “Developing commercial agriculture in Africa requires patient and strategic investment. We are fortunate to have shareholders who recognise the huge potential as well as the challenges of investing in the sector. This latest capital injection from BII, Norfund, and Swedfund strengthens AgDevCo’s position as a leading specialist investor, enabling us to grow our portfolio and drive positive impact at scale.”
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About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.
About Norfund
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Government’s most important tool for strengthening the private sector in developing countries and reducing poverty. Norfund’s committed portfolio amounts to USD 3.6 billion, with investments across Sub-Saharan Africa, South/Southeast Asia, and Latin America. For more details, please visit: www.norfund.no
About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting critical infrastructure in the public sector. Swedfund’s investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. By the end of 2023, Swedfund’s portfolio amounted to USD 1 billion and included almost 500 companies across Africa, Asia and Eastern Europe.
About AgDevCo
AgDevCo is an investment company dedicated to developing African agriculture through investments in agribusinesses. Its vision is a thriving commercial African agriculture sector that benefits both people and planet. The company was established in 2009 with UK Government being a long-term supporter and major funder, with an endowment currently at $190 million. In 2022, AgDevCo secured funding from BII, Norfund, and DFC. It has around 40 companies in its current portfolio spread over eleven countries in Sub-Saharan Africa, with the biggest exposure in Mozambique, Malawi, Kenya, Cote d’Ivoire and Zambia.
AgDevCo invests across the agricultural value chain including inputs, primary production and logistics in lower and lower-middle income Sub-Saharan African countries.
