AgDevCo, a specialized investor in African agriculture, has announced that it has secured $32 million in funding from the UK's Foreign, Commonwealth, and Development Office (FCDO) to launch AgDevCo Ventures, a new investment initiative aimed at supporting early-stage agribusinesses in Africa.
This strategic initiative is designed to foster the next generation of agribusinesses by offering essential financial assistance to small and medium enterprises (SMEs) in Africa.AgDevCo Ventures will target smaller investments, ranging from $1 million to $3 million, specifically focusing on the "missing middle" - a segment that is frequently overlooked by private investors due to perceived risks and high transaction expenses.
The venture aims to generate more jobs, enhance smallholder farmer incomes, and strengthen climate resilience across the continent by providing capital to these early-stage agribusinesses.
Initially, AgDevCo Ventures will direct its support towards East African countries where AgDevCo already has established operations, including Kenya, Uganda, Tanzania, and Rwanda. The firm plans to broaden its reach to additional African regions in the future.
The portfolio is anticipated to include a significant proportion of African and female-owned businesses, highlighting its commitment to inclusivity and gender equality.
