British International Investment (BII), the UK’s development finance institution and impact investor, alongside Swedfund and Norfund, have announced a joint $85 million (Ksh10 billion) 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% 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.
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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 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.”
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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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