IFAD and AgDevCo launch $10 million agribusiness fund for Africa

The International Fund for Agricultural Development (IFAD) and AgDevCo Ventures Limited have signed a $10 million agreement to boost financing for agribusinesses in Africa. The initiative aims to mobilize capital for young companies within agricultural value chains, with the first phase targeting East African nations including Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

The program intends to support up to 15 companies, potentially benefiting approximately 128,000 farmers indirectly and creating roughly 2,900 jobs over twelve years. A key focus is placed on women and youth, who often face significant barriers to accessing credit. This blended finance approach seeks to attract private investment to address the massive funding gap in the sector, which the African Development Bank estimates at $180 billion annually.

In a related discussion at the Africa Food Systems Forum in Rwanda, the National Agricultural Development Fund (NADF) highlighted that low investor confidence and a lack of credible institutions remain major hurdles for African agriculture. NADF Executive Secretary Mohammed Ibrahim emphasized that public capital should act as a catalyst to mitigate risks and market constraints, thereby encouraging larger pools of commercial and development finance to enter the sector.