The joint investment from three European DFIs will support food security while strengthening climate resilience across across sub-Saharan Africa. Agriculture remains core to many African economies, yet the sector faces persistent challenges.
Norfund, Norway’s development finance institution (DFI), has made a joint $85m (€80m) investment into AgDevCo, an agribusiness investor specialising in supporting food systems and farming across sub-Saharan Africa (SSA). The investment was made alongside the Swedish and British DFIs Swedfund British International Investment (BII).
AgDevCo supports agribusinesses to scale sustainably by bridging financial gaps, ensuring that farmers and food producers have sufficient resources.
Norfund made a $15m equity investment, alongside a $20m investment from Swedfund, and a $50m allocation from BII. BII’s $50m commitment, alongside its previous $50m investment in 2022, makes it AgDevCo’s largest external investor.
Addressing agricultural challenges
Speaking to Impact Investor, Donald Muchiri Kariuki, investment manager at Norfund said that investments in local value chains were key to boosting incomes and food security, adding that challenges like climate risks and limited infrastructure require careful navigation and strong local partnerships.
“The agricultural sector in SSA is fundamental to economic development, as it underpins the livelihoods of a large share of the population and significantly contributes to GDP in many countries,” said Kariuki.
“However, investors must navigate complex challenges including climate-related risks, insufficient infrastructure, and limited access to finance and technology. Success in this environment requires a strong local presence, a nuanced understanding of market dynamics, and trusted partnerships on the ground,” he added.
Agriculture remains core to many African economies, yet the sector faces persistent hurdles such as limited financing, climate change vulnerabilities, and underdeveloped supply chains.
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 SSA.”
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, according to BII. Over 28,000 jobs were directly supported in the same year, and AgDevCo reported that each dollar invested to date has already generated $2.50 of higher incomes for rural and peri-urban households – areas on the outskirts of cities blending urban and rural characteristics – through employment and other income-generating opportunities, such as being able to rear improved breeds of backyard chickens.
With this investment, the AgDevCo platform expects to be delivering benefits for four million farmers, as well as supporting 60,000 jobs annually by 2030.
Tomas Wadström, senior investment manager at Swedfund, said: “Food systems is one of Swedfund’s focus areas. The agricultural sector in SSA 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.”
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.”
