Sahel Capital extends US$1.5M loan to Rasad Nigeria to boost cocoa and cashew trade

NIGERIA – Sahel Capital has closed a US$1.5 million working capital loan for Rasad Nigeria Limited, adding fresh funding to Nigeria’s cocoa and cashew sector at a time of rising regional processing activity.

Sahel Capital, an investment manager focused on agriculture and agribusiness in Sub-Saharan Africa, provided the loan through the Social Enterprise Fund for Agriculture in Africa, known as SEFAA. The fund supports small and medium agribusinesses across 13 countries in the region.

Rasad Nigeria operates from Ogun State and works with more than 1,000 smallholder farmers and produce collectors. The company aggregates cocoa and cashew nuts for sale to local and export markets. With the new funding, Rasad Nigeria plans to raise the volume it buys from farmers during harvest, improve payment terms, and keep supplies steady for buyers.

Company executives say these steps aim to reduce income swings for farmers while improving planning across the supply chain. Sahel Capital partner Deji Adebusoye said the repeat financing shows trust built over time. “The increase in this line of financing reflects our confidence in the company’s ability to execute and its role in inclusive development of agricultural value chains in Nigeria,” he said.

Rasad 2.0 and export plans

Rasad Nigeria also plans to expand activities under its Rasad 2.0 program. The plan covers processing, trading, and export of farm products, with a focus on higher value outputs. The company has also outlined plans for Axias Global, a unit that will handle export operations, processing, and circular economy projects.

The loan comes as Nigeria’s farm sector continues to face limited access to capital. A 2022 study by Agri-Logic put the country’s agricultural funding gap at about US$183 billion. Industry players often point to targeted SME finance as a key tool for keeping supply chains stable and competitive.

The financing also lands amid strong growth in cashew processing across West Africa. Data from trade advisory firm N’kalô shows that the region processed about 732,000 tonnes of cashew nuts into kernels in 2025, up 51 percent from a year earlier.

Côte d’Ivoire led the rise, while Benin doubled output after restricting raw nut exports to support local plants. Ghana recorded a smaller increase but still faced raw material access issues.

Analysts say stronger processing in the region could lift demand for structured supply from producers like Rasad Nigeria. For investors and agribusiness firms alike, closer links between farm supply, local buying, and regional processing now shape the next phase of growth.

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