AgDevCo Scores USD 85 M from BII, Swedfund, and Norfund to Support African Farmers

Africa’s agricultural sector faces persistent challenges that threaten food security and economic stability. Limited access to financing, climate change vulnerabilities, poor infrastructure, and weak market linkages have hindered growth, leaving millions of smallholder farmers struggling to scale their businesses and improve their livelihoods.

AgDevCo, a specialist investor focused on agriculture in sub-Saharan Africa, is working to bridge these gaps by providing long-term capital and support to agribusinesses that would otherwise lack access to funding.

In a significant boost to this effort, British International Investment (BII), the UK’s development finance institution and impact investor, alongside Sweden’s Development Finance Institution Swedfund and Norwegian Investment Fund Norfund, have announced a landmark USD 85 M investment in AgDevCo.

The investment package—including up to USD 50 M from BII, USD 20 M from Swedfund, and USD 15 M from Norfund—aims to expand AgDevCo’s portfolio of small and medium-sized enterprises (SMEs) engaged in food production, processing, and distribution. BII’s new USD 50 M commitment, combined with a previous USD 50 M investment in 2022, makes it the largest external investor in AgDevCo.

This capital injection is expected to enable AgDevCo to expand its support to small and medium-sized enterprises (SMEs) particularly agribusinesses, by investing across the agricultural value chain—from primary production to logistics—ensuring sustainable practices and improved resilience.

The impact investor aims to achieve this by using a model that provides 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.

AgDevCo’s impact is already evident. In 2023, the organization supported over 2.4 million small-scale farmers, traders, and customers, with 29% of beneficiaries being women. Additionally, more than 28,000 jobs were directly supported through its portfolio companies.

The organization reports that every dollar invested has generated USD 2.50 in additional income for rural and peri-urban households, creating employment and income-generating opportunities such as poultry farming and improved crop production.

With this new investment, AgDevCo expects to support four million farmers and sustain 60,000 jobs annually by 2030. By providing patient, long-term capital to agribusinesses that struggle to access traditional funding, AgDevCo is helping scale up operations in a sustainable and impactful way.

Beyond boosting productivity, this investment aligns with a growing commitment to climate-positive agriculture. More than half of AgDevCo’s primary production investments already integrate regenerative farming practices, which not only promote soil health and biodiversity but also contribute to carbon sequestration and climate adaptation.

Roman Frenkel, Director and Head of Food, Agriculture, and Natural Capital at BII, highlighted the significance of this partnership: “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 laying the foundation for long-term development and prosperity across sub-Saharan Africa.”

The UK Government, a long-time supporter of AgDevCo, reaffirmed its backing. Lord Collins of Highbury, Parliamentary Under-Secretary of State for Africa, emphasized the importance of British investment in African agribusinesses: “Not only will this increased investment improve the livelihoods of farmers in sub-Saharan Africa, but it will also contribute to food security across the continent and strengthen UK supply chains.”

Swedfund’s Senior Investment Manager, Tomas Wadström, reinforced the importance of investing across the food value chain: “The agricultural sector in sub-Saharan Africa faces numerous challenges, from limited financing to climate vulnerabilities. Investing in this sector boosts resilience, food security, and job creation—key to reducing poverty.”

Similarly, Donald Muchiri Kariuki, Investment Manager at Norfund, stressed the importance of supporting smallholder farmers: “Agriculture is a cornerstone for fostering inclusive and sustainable economic growth in sub-Saharan Africa. This investment strengthens our commitment to empowering smallholder farmers and enhancing local food systems.”

Daniel Hulls, CEO of AgDevCo, acknowledged the challenges and opportunities in African agriculture: “Developing commercial agriculture in Africa requires patient and strategic investment. We are fortunate to have shareholders who recognize both the potential and the hurdles of investing in the sector. This latest capital injection strengthens AgDevCo’s position as a leading specialist investor, enabling us to scale our portfolio and drive positive impact at a greater level.”

With this significant funding, AgDevCo is poised to deepen its impact, supporting agribusinesses that will shape the future of agriculture in sub-Saharan Africa. As this partnership takes root, the promise of a more resilient, productive, and sustainable agricultural sector moves closer to reality.