London, February 20, 2025 – British International Investment (BII), alongside Sweden’s Swedfund and Norway’s Norfund, has committed $85 million to AgDevCo, a specialist investor in African agriculture, to enhance productivity and food security across sub-Saharan Africa. The equity investment, announced recently, includes up to $50 million from BII, $20 million from Swedfund, and $15 million from Norfund, targeting small and medium-sized agribusinesses. BII’s contribution builds on a prior $50 million investment from 2022, making it AgDevCo’s largest external backer with a total of $100 million.
The funding will expand AgDevCo’s portfolio, supporting enterprises that produce nutritious local foods and high-value export crops. In 2023, AgDevCo’s investments reached over 2.4 million small-scale farmers—29 percent of them women—while sustaining more than 28,000 jobs. The platform projects that by 2030, its efforts will benefit four million farmers and support 60,000 jobs annually. Each dollar invested so far has generated $2.50 in household income, driven by jobs and opportunities like improved poultry farming.
Africa’s agricultural sector grapples with financing shortages, climate risks, and weak value chains. AgDevCo counters these by offering long-term capital to businesses excluded from traditional funding, fostering sustainable growth. Over half its primary production investments employ regenerative agriculture, aiding climate resilience and carbon sequestration. Lord Collins of Highbury, UK Parliamentary Under-Secretary of State for Africa, said: “I’m delighted to see BII building on its existing investments in AgDevCo, alongside other development finance institutions. It’s a great example of how British private investment can deliver economic growth across Africa. Not only will this increased investment in African agribusinesses improve the livelihoods of farmers in sub-Saharan Africa, it will also contribute to food security across the continent and strengthen UK supply chains.”
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Roman Frenkel, Director and Head of Food, Agriculture and Natural Capital at BII, added: “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 sub-Saharan Africa. We are excited to deepen our partnership with AgDevCo and work alongside Norfund and Swedfund to transform food systems in Africa.”
Tomas Wadström, Senior Investment Manager at Swedfund, noted: “Food Systems is one of Swedfund’s focus areas. 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. This in turn will contribute to poverty reduction through job creation and better production capacities, including for smallholder farmers.”
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Donald Muchiri Kariuki, Investment Manager at Norfund, said: “At Norfund, we recognise agriculture as a cornerstone for fostering inclusive and sustainable economic growth in sub-Saharan Africa. Our $15 million investment, which brings our total investment in AgDevCo to $35 million, reflects our unwavering commitment to supporting enterprises that empower smallholder farmers, enhance local food systems, and build resilience against climate change.”
Daniel Hulls, CEO at AgDevCo, concluded: “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.”
