The commitment will allow Planting Naturals to grow its operations and boost incomes and livelihoods for its growing network of farmers in the West-Africa country.
AgDevCo, a specialist investor in African agriculture with $340m (€292m) in assets under management, has invested $7m in a sustainable organic palm oil producer based in Sierra Leone.
Planting Naturals produces organic crude palm oil and palm kernel oil for export, sourced from its own plantations and from around 8,000 smallholder farmers. The firm, which employs over 1,500 people, provides its farmers with training in sustainable agriculture and also helps them obtain certifications such as the Roundtable on Sustainable Palm Oil (RSPO) and the EU’s deforestation-free regulation (EUDR).
The investment will help Planting Naturals grow its fruit production and mill capacity, upgrade its logistics infrastructure and provide more technical assistance to farmers, it said.
“This investment reflects our commitment to building sustainable agriculture supply chains in Africa linking smallholder farmers to local and international markets. Our patient, flexible capital supports rural communities to meet rising global demand for sustainable palm oil, with significant benefits in terms of jobs and inclusive economic growth,” said Kweku Koranteng, AgDevCo’s regional director for West Africa.
Agricultural landscape
AgDevCo first started investing in Sierra Leone in 2018. While the country has seen strong economic growth in recent years, some of its progress has been marred by the aftermath of a civil war that ended in 2002. Although Sierra Leone has an abundance of natural resources, ranging from iron ore, diamonds, gold to bauxite, most of its population is engaged in subsistence agriculture, according to the World Bank.
The investment by AgDevCo will further position Sierra Leone as a source of palm oil that’s certified, sustainable and traceable, according to Jan Hein De Vroe, CEO of Planting Naturals.
“Together, we will demonstrate that palm oil can be produced in a way that delivers shared value—improving farmer incomes, empowering rural communities, and protecting the environment,” De Vroe said.
Funders
AgDevCo is a blended finance vehicle which works closely with domestic and international funding partners, including British International Investment, Norfund, Swedfund and the UK’s Foreign, Commonwealth & Development Office.
It typically invests between $3m to $12m in agribusinesses with strong management teams, proven business models and the potential to deliver positive and social and environmental outcomes at scale, it says. It also provides technical assistance to its portfolio companies, which are mostly based in lower and lower-middle income sub-Saharan countries. Since its foundation in 2008, AgDevCo has made over 89 investments, including 51 exits.
