The Swedfund, British International Investment (BII), and Norfund have announced a joint Sh11 billion ($85 million) equity investment in AgDevCo, a specialist investor dedicated to transforming agriculture in Sub-Saharan Africa, including Kenya.
The funding, comprising up to Sh2.6 billion ($20 million) from Swedfund, Sh6.5 billion ($50 million) from BII, and Sh1.9 billion ($15 million) from Norfund, will support high-impact agribusinesses, strengthen food systems and improve food security in rural communities.
The partners say this equity investment will drive sustainable agricultural growth, support local food production, and boost the region's export potential.
It will also play a key role in addressing critical challenges such as limited financing, climate risks, and market access barriers, ensuring long-term economic and environmental resilience.
“The agricultural sector in Sub-Saharan Africa 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,” said Tomas Wadström, senior investment manager at Swedfund.
“Through this collaboration, we are not only enhancing food security but also laying the foundation for long-term development and prosperity across sub-Saharan Africa,” added Roman Frenkel, director and head of Food, Agriculture and Natural Capital at BII.
The investments also play an important role in climate finance, as Africa's agricultural sector faces persistent challenges, including limited access to finance, climate vulnerability, low market access, and underdeveloped value chains.
These initiatives promote climate adaptation, resilience, and carbon sequestration, in line with the commitment of development finance institutions (DFIs) to sustainable and climate-friendly investments in Sub-Saharan Africa.
“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. This latest capital injection from BII, Norfund, and Swedfund strengthens AgDevCo’s position as a leading specialist investor, enabling us to grow our portfolio and drive positive impact at scale,” said Daniel Hulls, CEO at AgDevCo.
To date, every $1 invested in AgDevCo has generated $2.50 in increased income for rural and peri-urban households through employment and other income-generating opportunities, such as improved backyard poultry rearing.
With this new capital injection, AgDevCo aims to benefit four million farmers and support 60,000 jobs per year by 2030.
