From farm to table - creating impact throughout the value chain

Agriculture in sub-Saharan Africa

Around half of the population in sub-Saharan Africa works in agriculture, but large parts of the region are still characterised by uncertain access to food. An interplay of structural barriers has contributed to both dependence on imports and high prices. A large proportion of the continent’s food is produced by smallholders, who often operate in fragmented value chains where a lack of capital, processing facilities and logistics leads to low yields, high losses and limited incomes. Climate change and extreme weather, such as droughts and floods, make it even harder for people to grow food and earn a living.

Investments that strengthen the value chain

AgDevCo invests both knowledge and capital in local agribusinesses. By investing in the entire chain, businesses can modernise their production, become more efficient and better able to cope with climate change. This leads to higher yields, more stable incomes and more jobs. AgDevCo also invests with a particular focus on sustainable practices, products and knowledge that promote both agriculture and biodiversity in the region. Over half of AgDevCo’s primary production investments use regenerative agriculture practices that keep soil fertile, reduce erosion, conserve water and help sequester carbon in the soil.

Examples of businesses in which AgDevCo has invested include Agventure, Cashew Coast and Tropo Farms. Agventure is a Kenyan company and agricultural cooperative that aggregates, processes and markets a range of food crops. The company supports its farmers not only by providing market access but also by promoting the adoption of regenerative agricultural practices through training, including minimum tillage and crop rotation, and by facilitating access to inputs such as improved seed varieties that increase yields and are more resilient to climate change. Cashew Coast produces cashew nuts in partnership with local smallholders and uses digital solutions for payment methods, increased traceability and efficient production. Tropo Farms farms tilapia fish in Lake Volta, Ghana, and contributes to both job creation and supporting the local food supply by combining modern and sustainable fish production.

How capital creates sustainable value

AgDevCo’s investments so far have improved smallholders’ access to markets, increased productivity and created more stable incomes. Strengthening small and medium-sized agribusinesses creates more jobs with decent working conditions, boosts local value creation and promotes greater gender equality. In 2024, over 2.7 million smallholder farmers, traders and consumers, 52 percent of whom were women, benefited from markets and income opportunities linked to AgDevCo’s portfolio companies.

Swedfund’s investment bolsters AgDevCo’s ability to reach more agribusinesses in the regions and grow its business. As a development finance institution, we provide long-term capital in contexts where we see the greatest opportunity for impact. The investment is complemented by active ownership that focuses on environmental and social management systems, human rights, business integrity and gender equality.

The equity investment, totalling MUSD 85, was made in 2024 together with British International Investment (BII) and Norwegian Norfund. It comprises up to MUSD 20 from Swedfund, MUSD 50 from BII and MUSD 15 from Norfund.

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