AgDevCo Ventures Launched with $32 Million Backing to Boost Early-Stage African Agribusinesses

AgDevCo, a leading investor in African agriculture, has secured $32 million in funding from the UK's Foreign, Commonwealth, and Development Office (FCDO) to launch AgDevCo Ventures, a new initiative aimed at supporting early-stage agribusinesses in Africa. This move is designed to foster the growth of small and medium-sized enterprises (SMEs) across the continent, providing much-needed financial support to a segment often overlooked by private investors due to perceived risks and costs.

AgDevCo Ventures will focus on investments between $1 million and $3 million, targeting the "missing middle" — businesses that fall between large corporations and smaller-scale enterprises. The initiative aims to boost job creation, increase incomes for smallholder farmers, and build climate resilience across Africa by funding early-stage agribusinesses.

Initially, the venture will concentrate on East African countries such as Kenya, Uganda, Tanzania, and Rwanda, where AgDevCo already has a presence. Expansion to other African regions is planned in the future.

The portfolio will prioritize African and female-owned businesses, reflecting the firm’s dedication to inclusivity and gender equality. AgDevCo Ventures will operate as a distinct branch within the company, with a dedicated team based in Nairobi and support from experts across the organization.

Source: Osamu Ekhator / TechPoint Africa