Africa Minister Lord Collins has announced that the UK will support a new investment facility to accelerate the growth of Africa’s food and agriculture sector.
During his keynote speech at the Africa Food Systems Forum (AFSF) 2024, Lord Collins committed to providing £25 million for AgDevCo, a UK-based social impact investor dedicated to investing in African agribusinesses.
In the face of conflict and climate change, communities across Africa are grappling with high levels of hunger and malnutrition. In Sub-Saharan Africa, one in four are undernourished. Investing in Africa’s food markets is a crucial means of working with farmers, helping those at the forefront of the climate crisis and moving towards a world free from poverty.
The UK’s contribution is expected to yield an increase in income of £128 million for the farmers who benefit by 2036.
This funding will support the creation of AgDevCo Ventures, channelling early-stage investment into small and medium-sized enterprises in Africa’s agriculture sector. The UK government is contributing over half of the funds, with matching contributions being raised from other investors, resulting in $50 million overall for the planned launch of AgDevCo Ventures in early 2025.
The new funding facility will work with small African agricultural enterprises, focusing on African-owned and managed businesses.
Evidence shows that small to medium-sized enterprises lack the financing options necessary to scale up. As a result, the UK is working alongside partners to pioneer new ways to finance agribusiness and mobilise other investors.
The demand for food and animal feed in Africa is projected to triple between 2010 and 2050, with the global demand for food to increase by 50%. UK investment will improve both African and global food and nutrition security by enabling enterprises in the agriculture sector to better cater to the rising demand.
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