Top Agriculture Venture Capital Funding for Africans

 


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 We understand how important finance is in agribusiness, and how difficult it is to sources for funding thorough conventional bank loans due to risks associated with agricultural business, and high requirements to access bank loans. Here we have listed some sources of venture capital funding for agribusinesses available to Nigerian and African agricultural entrepreneurs.

African Agricultural Capital

African Agricultural Capital (AAC) was established in 2004 with the vision of creating an investment vehicle for channeling finance to small and medium-sized enterprises (SMEs) in agricultural value chains.

AAC supplies inputs like seeds, pesticides, fertilizer to farmer. In addition, it offers post-harvest services like processing, storage and distribution of farm produce.

funding from Gatsby, Rockefeller and Volksvermogen of Belgium, Pearl Capital Partners (PCP). This team also now manages the $12m African Seed Investment Fund - focused on seed businesses in eight countries across eastern and southern Africa - on behalf of the Alliance for a Green Revolution in Africa.Bill and Melinda Gates Foundation.

AAC was capitalised in 2005 to take advantage of these opportunities with funding from Gatsby, Rockefeller and Volksvermogen of Belgium. By April 2009, AAC had invested its initial capital of $8m in a portfolio of 16 businesses across East Africa. Investees cover the whole value chain, from seed sellers to service companies whose certification schemes increase the value of other agribusinesses. A recent case study of AAC’s impact, profiling in depth five investments that comprised 30% of the portfolio, showed these businesses had provided improved seed to 860,000 farmers, bought produce from 5,000; and provide jobs for over 700 employees. Across the whole fund, seven exits have been completed to date. The fund is on track to deliver a gross return of 8%.

Sahel – FAFIN

Sahel Capital is a private equity company that focuses on the agriculture, agribusiness, manufacturing, and consumer goods sector in West Africa, particularly in Nigeria.

The Fund for Agricultural Finance in Nigeria (FAFIN) was established in 2014.

FAFIN invests in high-growth enterprises across the agricultural value chain in Nigeria, primarily in processing, livestock, storage, distribution, organic farming products and production.

As well as providing capital to these companies, the fund also offers a technical assistance facility to help strengthen their capacity.

In 2017, CDC invested $15 million in FAFIN through the Impact Fund, bringing the fund size to $66 million.  Other investors include the African Development Bank, the Dutch Good Growth Fund, the Federal Government of Nigeria, and KfW, the German development bank.

Read also: 22 Best Agricultural Investment Platforms in Nigeria

AgFunder

AgFunder is a new kind of venture capital firm. Its mission is to invest in bold and impactful technologies rapidly transforming our food and agriculture system. Their invest mostly on Agritech innovative ideas.

VC4A

VC4A started with the mission to build up Africa’s startup community. Started in 2007, the network building organization has grown organically over the years into what is now the leading community working to build high growth high impact companies globally.

Increased economic momentum is fueled by a growing number of entrepreneurs and their ambition to transform society. It is imperative we seek out the collaborations and partnerships needed to bring together the capital, knowledge, and network these entrepreneurs require to succeed – and to provide every entrepreneur with an equal access to opportunity.

VC4A strengthens the global startup community by connecting entrepreneurs creating innovative and scalable businesses with the knowledge, network and funding they require to succeed. The sectors that receive much attention are information technology, agriculture, environment sectors

Entrepreneurs have access to the VC4A Startup Academy, mentorship opportunities and the ability to raise capital.

  • Program partners engage members with their entrepreneurship programs, competitions and services.
  • Investors are able to discover great companies, research opportunities and follow up with founders directly.
  • Mentors are able to browse through mentorship requests and connect with founders to support their journey.

Agricultural entrepreneurs in Africa can leverage the opportunities VC4C provides to access venture capital funding for their agribusiness.

Read also: Top Global Venture Capital Funds for Food, Beverage and Agribusiness Enterprises


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