AgDevCo Ventures, a new subsidiary of agribusiness investor AgDevCo, has secured a $49 million first close to finance early-stage farming and agriprocessing companies across East Africa, addressing a persistent gap in the market that has long left agri-SMEs unable to access long-term capital.
The initiative will make investments ranging from $1 million to $3 million into early-stage agribusinesses, with the stated aim of building the next generation of African agribusinesses capable of delivering positive impact at scale.
AgDevCo Ventures complements AgDevCo’s core strategy, which focuses on later-stage companies with larger investment requirements meaning the new vehicle fills a financing tier the parent organisation has historically not addressed.
The $49 million first close draws on a blend of concessional and private capital.
The International Fund for Agricultural Development is providing $10 million in subordinated debt funding. A consortium of senior lenders led by the Isenberg Family Charitable Foundation, including the Small Foundation, A to Z Impact, the Rabo Foundation and the Netri Fundación Privada, is contributing a combined $11.25 million.
That external capital leverages a $28 million equity injection from AgDevCo itself, funded through the UK’s Foreign, Commonwealth & Development Office.
AgDevCo Ventures is now fully operational under the leadership of Christine Mwangi, who has spent six years with AgDevCo’s East African team in Nairobi.
The board and investment committee draw on experienced East African investors, including Maurice Nduranu, Ezra Musoke, Kim Kamarebe and Abel Boreto. The company expects to announce its first investments later this year.
AgDevCo Ventures aims to support over 128,000 smallholder farmers and create around 2,900 full-time jobs in the region over the next decade, highlighting the substantial impact a modest capital pool can achieve when invested at the right stage of company growth.
Donal Brown, Associate Vice-President at IFAD, framed the fund’s structure as central to mobilising broader private investment.
“IFAD is pleased to provide an investment of USD 10 million to AgDevCo Ventures Limited,” Brown said. “As one of the main investors, IFAD expects AgDevCo Ventures’ strategic investments into inclusive agricultural companies to support rural transformation in East Africa and complement IFAD’s current work. IFAD’s catalytic role to crowd in private investors into AV structure demonstrates our commitment to work together with the private sector towards rural development.”
Stefan Freeman, Head of Investments at Ceniarth, speaking on behalf of the senior lender consortium, pointed to the fund’s structure as filling a distinct niche in African agribusiness financing.
“AgDevCo Ventures fills a critical financing gap for high-potential but underserved agri-SMEs,” Freeman said. “Its approach to supporting these businesses is unique in the sector, combining an early-stage focus with long-term, flexible mezzanine financing and tailored technical assistance. This is precisely the gap that patient, concessional capital and blended finance are built to close. We are delighted to back AgDevCo Ventures alongside IFAD and our fellow lenders.”
Kirsty McNeill MP, UK Minister of State for International Development and Africa, tied the fund to Britain’s broader development finance strategy on the continent.
“The UK is backing ambitious agribusinesses in Africa to get the investment they need to grow, create jobs, and strengthen food security and supply chains,” McNeill said. “We’ve done just that with AgDevCo Ventures, helping to bring on board other investors to back Africa’s growing companies and expertise.”
Daniel Hulls, AgDevCo’s CEO and Chair of AgDevCo Ventures, described the new fund as a return to the organisation’s founding mission.
“We are grateful to the funders that are joining us,” Hulls said. “AgDevCo Ventures is a core part of our overall strategy. It returns us to the part of the market where we started almost two decades ago, where the gap in investment provision is most striking. We’re especially pleased to be bringing private investors into this round, which makes development finance go further.”
The fund’s blended structure combines concessional capital from development finance institutions with commercial lending from private foundations and impact investors. This model is gaining popularity in African agribusiness investment, addressing the financing gap for early-stage companies that are too large for microfinance yet too small or risky for conventional lenders.
By pairing subordinated debt, senior lending and equity in a single vehicle, AgDevCo Ventures is positioning itself to absorb risk that would otherwise deter purely commercial capital from entering the sector, while still offering investors a pathway toward financial returns alongside development impact.
