AgDevCo unveils new subsidiary to boost agri SMEs in Africa

AFRICA – AgDevCo, a London-based agricultural investment firm, has announced the creation of a new subsidiary, AgDevCo Ventures, set to launch operations in early 2025 with backing from the UK government.

UK Minister of State for Africa, Lord Collins Highbury, confirmed the UK’s commitment to the project.

“I am pleased to announce the UK will support AgDevCo Ventures with a USD 50 million facility, providing more than half of the funds, while AgDevCo will raise the rest from private investors,” Lord Highbury stated.

This investment is part of the UK’s strategy to boost Africa’s resilience to climate change while fostering economic growth through agricultural development.

The British government has already pledged £20 million (approximately USD 26.19 million) through its Foreign, Commonwealth, and Development Office (FCDO), with additional funding from development finance institutions and family offices being finalized.

AgDevCo Ventures will focus on supporting early-stage agricultural small and medium-sized enterprises (SMEs) in East Africa, addressing a critical gap in funding often overlooked by private investors.

This entity will begin by targeting modest investments ranging between USD 750,000 and USD 2.5 million, with a particular focus on Kenya, Uganda, Tanzania, and Rwanda.

The company’s goal is to develop sustainable agricultural businesses, bridging the gap between smallholder farmers and market opportunities.

These smaller-scale investments aim to address the “missing middle”—a space where private investors shy away due to perceived high risks and transaction costs.

The venture aligns with AgDevCo’s broader strategy of building the next generation of African agricultural enterprises. “Our mission is to connect smallholder farmers with commercial opportunities, helping them grow and scale,” an AgDevCo spokesperson said.

The firm has been operating in the region for over a decade, building partnerships that emphasize productivity and resilience.

Recent investments and expansion plans

AgDevCo’s investment activities in Africa have been steadily expanding. In 2023, the firm invested USD 10 million into Dowson Limitada, a Mozambique-based producer of macadamias and avocados.

The funding will help Dowson expand its operations to cover 1,000 hectares over the next five years, supporting both local job creation and the opening of new export markets.

Kirk Lynch, Senior Investment Manager at AgDevCo, emphasized the importance of this partnership. “Dowson’s management and use of technology to improve farm productivity have been impressive,” Lynch said. “Our investment will help them achieve their expansion goals and bring more jobs to rural communities.”

Jack Brotherton, co-founder and CEO of Dowson expressed his gratitude for the financing. “The structured financing will allow Dowson to expand while letting our trees mature before any debt servicing is required.”

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