British International Investment

Sahel Capital - FAFIN

NigeriaAfricaConsumer - other servicesFood & Agriculture

The Fund for Agricultural Finance in Nigeria (FAFIN) was established in 2014.

FAFIN invests in high-growth enterprises across the agricultural value chain in Nigeria, primarily in processing, livestock, storage, distribution, organic farming products and production.

As well as providing capital to these companies, the fund also offers a technical assistance facility to help strengthen their capacity.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

In 2017, CDC invested $15 million in FAFIN through the Impact Fund, bringing the fund size to $66 million. 

Other investors include the African Development Bank, the Dutch Good Growth Fund, the Federal Government of Nigeria, and KfW, the German development bank. 

Our investment supports local high-growth enterprises across the agricultural value chain in Nigeria.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

Agriculture plays a vital role in the Nigerian economy - accounting for 60 per cent of labour force and 24 per cent of GDP.  Most farms are owned by smallholder farmers relying on SMEs in the sector to connect them to the growing Nigerian consumer market.

Despite their importance, agricultural SMEs struggle to access long-term flexible finance. FAFIN is trying to tackle this problem by providing capital to this under-served group.  FAFIN backs sustainable businesses that seek to revolutionise the Nigerian agribusiness landscape while creating jobs, improving productivity, and strengthening supply chains. 

So far, FAFIN has backed businesses that have created over 500 new jobs – 50 per cent of which are for women and young people – and improved the lives of over 1,000 smallholder farmers and their families by supporting innovative business incentives and out-grower schemes.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We work closely with the first-time team on managing the environmental and social risks associated with investments into the agriculture value chain.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D2256
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Consumer - other services, Food & Agriculture

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    June 2017
    Amount :
    $15m
    Currency of investment :
    USD
    Fund Manager:
    Sahel Capital
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius

Investments made by this fund into companies:

For further information about these companies, visit www.sahelcp.com/

Investment name Country Region Sector Start date Status
Coscharis Farms Limited Nigeria West Africa Food & Agriculture May 2018 Active
Crest Agro Products Limited Nigeria West Africa Food & Agriculture April 2017 Active
Dayntee Farms Limited Nigeria West Africa Food & Agriculture September 2016 Active
Diamond Pearl Agro Allied Limited Nigeria West Africa Food & Agriculture December 2015 Active
L&Z Integrated Farms Ltd Nigeria West Africa Food & Agriculture February 2015 Exited
Ladgroup Limited Nigeria West Africa Food & Agriculture May 2019 Active
Polyfilm Packaging Nigeria West Africa Food & Agriculture November 2019 Active
TradeDepot Inc Nigeria West Africa Consumer - other services October 2021 Active

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