AgDevCo, a leading investor in African agriculture, has secured a significant $32 million investment from the UK’s Foreign, Commonwealth, and Development Office (FCDO). This exciting new initiative, established as AgDevCo Ventures, is designed to empower early-stage agribusinesses across the continent.

Investing in the “Missing Middle”

Traditionally, large-scale agribusinesses have attracted most of the investment in Africa. AgDevCo Ventures aims to bridge this gap by focussing on the “missing middle”: smaller, early-stage ventures with immense potential. These businesses, often owned and led by Africans and women, frequently struggle to secure funding due to perceived risks and high transaction costs.

Funding for Growth and Impact

AgDevCo Ventures will provide targeted investments ranging from £0.75 million to £2.5 million (approximately $1 million to $3 million). This funding will be key in propelling these promising businesses to the next level, creating jobs, boosting smallholder farmer incomes, and building climate resilience across Africa.

East Africa First, Expanding Beyond

The venture will initially concentrate on countries in East Africa where AgDevCo already has a strong presence, including Kenya, Uganda, Tanzania, and Rwanda. However, their vision extends beyond regional borders, with plans to expand support to other African nations in the future.

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A UK-Africa Partnership for Food Security

The UK government, through the FCDO, recognises the critical role of stable food markets in Africa. They believe this investment will contribute to a more secure and prosperous future for the continent.

Lord Collins of Highbury, the UK Minister for Africa, emphasised the importance of “providing hard-working farmers with stable incomes, creating jobs for the youth, and helping end malnutrition.”

Building a Sustainable Future

AgDevCo CEO Daniel Hulls expressed his gratitude for the UK government’s continued support. He stated, “This funding will allow us to leverage third-party capital and go back to investing in small, early-stage businesses.”

AgDevCo Ventures prioritises high-impact investments that not only create jobs and increase rural incomes, but also contribute to a more climate-resilient African agricultural sector.

AgDevCo Ventures 

AgDevCo specialises in investing in African agriculture, promoting sustainable and impactful agribusinesses, and managing a portfolio of USD 280 million.

Their mission is to cultivate a vibrant commercial agriculture sector that benefits both people and the planet. They achieve this by investing in and nurturing agribusinesses to expand, create employment opportunities, produce and process food, and facilitate connections between farmers and markets.

Their goal is to assist its partners in promoting climate sustainability and, whenever possible, adopting regenerative agricultural solutions. As of the end of June 2024, AgDevCo had allocated $210 million to 38 investments across 11 countries in sub-Saharan Africa.

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The Future of African Agriculture

AgDevCo Ventures marks a significant development in empowering the next generation of African agribusinesses. This initiative, driven by a strong UK-Africa partnership, has the potential to unlock immense agricultural potential across the continent, ensuring food security, creating economic opportunities, and building a more sustainable future for Africa.

Visit AgDevCo’s website at www.agdevco.com or contact them at sforrest@agdevco.com to learn more about AgDevCo Ventures and how to get involved.