AfDB makes $9 million investment in Nigerian agribusiness vehicle
Summary
The fund is expected to deliver strong development outcomes including employment, women empowerment and inclusive growth.
The African Development Bank (AfDB) said on Thursday that $9 million has been approved by the bank as equity investment in the Fund for Agricultural Finance in Nigeria (FAFIN), the agriculture-focused investment fund.
Launched in December 2014, FAFIN provides capital and technical assistance to commercially-viable small and medium-sized enterprises (SMEs) and intermediaries in Nigeria's agricultural sector. The fund provides investment in agribusinesses using a combination of equity, quasi-equity and convertible loan instruments with an outlook for competitive financial returns and measurable positive social impact.
FAFIN is jointly sponsored by the German KfW Development Bank, Nigeria’s Ministry of Agriculture and Rural Development (FMARD), and Nigeria Sovereign Investment Authority (NSIA). The Fund Manager is Sahel Capital (Mauritius) Limited, a fund management firm incorporated in Mauritius in 2013.
With AfDB's investment, FAFIN will increase its committed capital to $43 million. FAFIN has a target of raising $100 million in investment fund.
The fund is expected to deliver strong development outcomes including employment, women empowerment, finance access and inclusive growth.
The fund’s primary focus is to developing the Nigerian agriculture value chain, reduce post-harvest loss, improve productivity and increase incomes of smallholder farmers.
AfDB said in a statement on Thursday that FAFIN's investment objectives align with the bank’s Ten Year Strategy, which prioritizes food security and access to local SME finance; and AfDB’s Strategy for Agricultural Transformation in Africa (2016-2025), Strategy on Jobs for Youth in Africa (2016-2025) and the Bank’s Country Strategy Paper for Nigeria (2013-2017), which supports an enabling environment for agriculture.
Related
-
IFAD nominates Togolese, Moroccan, among candidates for next president
Current president of IFAD, Kanayo F. Nwanze, will serve out his second term by March 31, 2017.
-
Investing in scientific research is key to Africa’s food security
Scientists in universities in Nigeria and other countries in Africa have been contributing tangibly to knowledge and making ...
-
African leaders prioritise policies to support youth and women
The aim of the UN Food Systems Summit is to deliver progress on all 17 of the SDGs through a food systems approach.
Sustainable Development Section Sponsor
-
Access Bank Plc ...Financing the future
Most Popular
- Why is Europe’s economy falling short? Part 1
- IFC launches $2bn green bond as investor demand surges to record levels
- Afreximbank President visits African Medical Centre of Excellence, Abuja
- Farmers worldwide report income strain and climate losses – survey
- Cocoa value-addition push as new test for Nigeria’s industrial ambition
- Africa’s bid to capture more mineral value
