AfDB to Set Up Agro-finance Fund
The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has disclosed that the bank is partnering with relevant stakeholders, “to design a pan-African private equity fund for agriculture to be known as the Fund for Agricultural Finance in Africa (FAFINA).”
Adesina, said the FAFINA would help the AfDB to scale up its, “interventions to support small and medium sized food and agribusiness companies across Africa.”
He made this disclosure on Tuesday, when he presented the keynote address during a virtual ceremony to mark the 10th Anniversary of the Sahel Capital, which was started by and run by a dynamic couple: Mezuo and Ndidi Nwuneli and has mobilised $65.9 million for
Nigeria’s first Private Equity Fund, FAFIN, dedicated to small and medium sized agribusinesses.
Adesina said: “Experiences from Sahel Capital on the FAFIN Fund will help as we now scale up interventions to support small and medium sized food and agribusiness companies across Africa.
“Following a very transparent, international and globally competitive bidding process, Sahel Capital was selected to manage the (FAFIN) Fund. We were impressed by Sahel Capital, but I insisted they had to open a special window for agriculture.
“I found in him (Mezuo) and Sahel Capital a passion, a drive and commitment to Nigeria’s agribusinesses and farmers. Today, Sahel Capital has raised more funds for FAFIN, and at final close it had raised $65.9 million. Sahel Capital is doing impressive investments through FAFIN.”
He noted that one of the Sahel Capital’s investments that impressed him the most was one that expanded dairy production in Kano State at the time the ShopRite supermarkets in Lagos imported their entire fresh dairy from South Africa.
The AfDB boss added: “Sahel Capital saw an opportunity and invested in a family owned dairy business, L& Z Farm sin Kano. Sahel Capital revamped the management of the L and Z, professionalised the staff and invested in new dairy processing equipment and dairy cows.
“The tide turned. The Land Z in a short period of time now supplied a major share of the dairy milk in ShopRite supermarkets in Lagos. That is the power of a well-run Private Equity Fund such as Sahel Capital, using the funds from FAFIN.”