5 places you can get funds for your agribusiness in Africa

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  1. The Maendeleo Agricultural Enterprise Fund (MAEF).

Launched in 2011, the Maendeleo Agricultural Enterprise Fund is a venture philanthropy programme managed by Farm Africa. MAEF works to identify, support and scale-up rural enterprises that contribute to a functioning market. MAEF builds upon the success of the Maendeleo Agricultural Technology Fund (MATF), which provided small-scale farmers in East Africa mainly: Kenya, Tanzania and Uganda with better access to improved agricultural technologies.

MAEF invests in small-to-medium-sized businesses (SMEs) that either enable smallholders to participate in agricultural value chains or provide products and services to farming families to improve their efficiency, modernise their farming practices, build a functioning market that they can engage with and ultimately increase their incomes. These include (but are not limited to) agricultural input and equipment suppliers, traders, aggregators, processors, and exporters.

It does all of this through a venture philanthropy model using grants to raise the productivity of farmers, coupled with risk capital to increase the turnover, business skills and market access of the commercial partner. If the potential partners meet the investment criteria, they are offered a complete package comprising non-recoverable grant, recoverable grant and business support. The amount of grant to be recovered after three years is negotiated beforehand and structured to provide an incentive for the partner to re-invest profits in the business on a continuous basis.

  1. Farm Capital Africa Limited.

Farm Capital Africa’s vision is to generate Wealth in Africa through investing in profitable business ventures in the underfunded agricultural sector. It channel’s capital to profitable and sustainable ventures through strategic partnerships supported by Technology to meet the dire need for access to agribusiness financing by small scale agripreneurs across Africa. Utilizing the internet to fund raise and mobile money to disburse funds, the company enables these agripreneurs, mostly youth and women, to connect with and receive capital investment from investment groups, urban middle class and diaspora africans in exchange for a share of the profits derived from the produce.

Farm capital has a risk sharing funding model that allows several investors to invest what ‘they can afford to lose’ into an agribusiness for a share of profits up until they recover their capital and earn a profit on it. This can range from 3 months to 5 years depending on the type of farming activity and amount of investment.

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  1. The Agriculture Fast Track (AFT) Fund.

The AFT is a fund that facilitates investments in agricultural infrastructure in Africa by lowering project preparation costs for AFT grant recipients. It is a multi-donor trust fund managed by the African Development Bank with funding support from the US government represented by USAID (US$ 12 million), the Danish Government represented by DANIDA (US$ 1.8 million) and the Swedish Government represented by SIDA (US$ 10 million). It was launched on 8 May 2013 with initial funding amounting to US$ 23.80 million. The AFT is housed at the Agriculture and Agro-Industry department (OSAN) of the African Development Bank.

The AFT provides grant funding for initial project development costs of a broad range of agriculture infrastructure projects spanning the entire value chain – from production to market. These can emanate from the private or public sector and from local or international businesses. The types of projects envisioned range from rural feeder roads to agro-processing and marketing facilities to out-grower schemes. The emphasis will be on projects that contribute to food security and support to smallholders.

  1. African Agriculture Fund (AAF).

A coordinated response from a pool of European and African development finance institutions, This African Agriculture Fund is a powerful and sizeable private equity fund aimed at making a positive impact on African agriculture and food production, through a truly pan-African investment approach in response to the continent’s food security. The Fund reached final close at $151 million in November 2010, operations commenced in January 2011 and within six months the team set the investment pace by concluding the AAF’s first investment in Sierra Leone, West Africa.

The Technical Assistance Facility (TAF) is a grant-based facility that supports capacity building for small and medium sized enterprises (SMEs) invested in by the AAF and its SME sub-fund, the AAF SME Fund, aiming to improve linkages between outgrowers, smallholders and the AAF portfolio companies, enhancing rural financing opportunities in communities where the AAF invests. Ultimately, the project’s sponsors hope to increase local household incomes and food security, laying the foundation for sustainable long-term growth for both our portfolio partner and the community it benefits.

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  1. Pearl Capital Partners.

Pearl Capital Partners is a specialist agriculture investment firm that has been investing in small and medium sized East African agribusinesses since 2006. They derive success from working with ambitious management teams, providing supportive investment structures and specialist expertise that create high-growth agribusinesses.

Their investments strengthen agricultural sub-sectors and use smallholder farmer networks to generate significant income for millions of families across East Africa. The byproduct of this growth is that it creates financial returns for the company and her investors.

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5 Comments

  1. david mugwe

    December 11, 2016 at 5:17 pm

    I would the support

  2. david mugwe

    December 11, 2016 at 5:19 pm

    Please support me. I do need this.

  3. Moses Kandaya

    September 23, 2017 at 12:13 pm

    Dear Sir/Madam,
    I would like to ask for direction of applying fund for Agribusiness (agronomy and livestock)in Malawi.

    Let me know please.

  4. Kennedy

    September 27, 2017 at 8:25 pm

    I would love to be part of your success..

  5. WHYTSON SAKALA

    November 15, 2017 at 4:27 pm

    Kindly advise how an existing small agribusiness can apply for funding for up scaling and diversifying operations. Thank you

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