AgDevCo, a social impact specialist investor in early-stage African agribusinesses led by British businessman Keith Palmer, has obtained a $90-million funding package from leading investors, as the company seeks to expand its agricultural investment operations across Africa.
AgDevCo was founded in 2010 by British businessman Keith Palmer to channel investment into high-growth firms, particularly startups in the agricultural value chain, from inputs to logistics.
So far, it has invested in 80 agribusinesses in Sub-Saharan Africa through debt and equity funding; its current investment portfolio, estimated at $150 million, includes more than 40 firms scattered throughout nine African nations, including Ghana, Cote D’Ivoire, Kenya, Tanzania, Uganda, Rwanda, Zambia, Malawi and Mozambique.
AgDevCo’s $90-million investment package was spearheaded by the UK’s development finance institution, CDC Group, which gave a total of $50 million in equity to shore up investments that will assist small farmers to increase yields and decrease waste.
The Norwegian investment fund for developing countries, Norfund, also provided $20 million in equity, while the U.S. International Development Finance Corporation provided $20 million in lending for the Palmer-led firm to support and grow its investees’ businesses through specialist technical support and access to technical assistance funds.
Palmer stated that the multimillion-dollar funding was a vote of confidence in AgDevCo’s expansion strategy and that it marks a significant milestone in the company’s history.
“Securing investment from CDC, Norfund and DFC is a major milestone in AgDevCo’s history, it is a strong endorsement of AgDevCo’s team and our strategy,” he said. We are excited that our vision is shared by our new funders, who recognize the important contribution that AgDevCo investments can make to productivity, sustainability, and inclusivity in Africa.”
He went on to say that the money represents the start of a relationship in which AgDevCo will leverage its sector expertise, as well as the networks and resources of new donors, to boost the number of effective investments in African agriculture.
“I am happy to see how AgDevCo’s investing has strengthened sustainable agriculture across Sub-Saharan Africa over the last decade,” Vicky Ford, UK minister for Africa, said. This new investment will bring continued growth, by enabling agribusiness SMEs to expand, improve farmer incomes, create new jobs and strengthen climate resilience across Africa.”
The grant, which comes on top of an announcement of up to $5.4 million in further funding from CDC, Norfund, and the UK’s Foreign, Commonwealth and Development Office (FCDO), will allow AgDevCo to expand its agricultural investment operations throughout Sub-Saharan Africa.
It will also expand on the original endowment financing supplied by the UK government, which helped create and support AgDevCo’s operations over the past decade.
