Everest Amaefule, Abuja
The Board of the African Development Bank has approved equity investment of $15m in the Africa Food Security Fund, which supports Small and Medium Enterprises involved in agri-business in order to enhance food security across the continent.
The AFSF is a second-generation fund targeting a total capitalisation of $100m. The fund will invest in potential high-growth SME operating in the food and agriculture value chains across sub-Saharan Africa.
It aims to address the needs of least- served operators in agricultural SMEs segment that are not targets of the larger private equity funds and commercial banks.
A statement made available to our correspondent in Abuja on Wednesday said the fund Manager, Zebu Investment Partners, was experienced in food production and processing at the SME level.
Considering the largely underserved needs of agricultural financing in Africa, the fund’s investment policy entails deployment of equity or quasi-equity instruments to provide expansion capital in the majority of cases with average ticket size of $6m to allow for follow-on investments without the need to seek additional external funding.
It is envisaged that the fund will create at least 20 direct jobs for each $1m invested, benefit over 14,000 smallholder farmers, with women taking at least 40 per cent of jobs created, the bank said.
In addition to its investments, the fund will provide post-investment support through a technical assistance facility to investee companies.
In his closing remarks at the Board session, the President, AfDB, Dr. Akinwumi Adesina, said there was a need to link all efforts on the project to the technologies for Africa Agriculture Transformation programme for productivity enhancement at the upstream level.
According to the AfDB, the fund’s investment strategy was fully aligned with the bank’s 10-year strategy (2013-2022), as well as the Regional Integration Policy and Strategy (2013-2024), especially on its inclusive activities.
The bank added that the current potential pipeline companies were aligned to the objectives of its High 5s – feed Africa (through investments in food, beverage and agro processing companies); industrialise Africa (through investments in processing companies); integrate Africa (through investments in businesses that cater to regional economies); and improve the quality of life of Africans (through provision of a technical assistance facility).
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: [email protected]
About Article Author
Latest Nigeria News
- I’m dumping Enyimba for Katsina United —-Ezenwa
- Difficult match but we came out victorious– Alex Iwobi
- Flying Eagles will approach Junior Mena with all seriousness— Paul Aigbogun
- FIFA & France sign agreement on African Football
- Boko Haram: ICC accuses Nigerian security forces of war crimes
- Arrest of Atiku’s son, tales by mischief makers – EFCC
- 2019: Saraki Urges INEC, security agencies, stakeholders to ensure credible elections
- Nigeria’s infrastructure deficit to hit $878b by 2040 – SEC DG
- I thank Watford family for believing in me—–Isaac Success
- Palace ‘interested in signing Moses with Chelsea for £12m
- 19th NSF: Toriola Oshonaike crashed out of Table tennis mixed double
- I Weep For President Buhari, His Wife Has Cried Out Endlessly - Dele Momodu
- Check Out Emirates' 'Diamond-encrusted' Airplane Going Viral Online (Photos)
- Luiz keen on Chelsea’s stay
- Oil marketers dare FG, shut down depots
- Christianity under siege in China
- Oil marketers suspend strike, gives FG 5-day grace
- Banks spend N555bn in nine months for customers’ relations
- Govenor Amosun in urgent meeting with Buhari
- Access Bank bags CBN’s Award
- 2019 Election: Senate declares public hearing on vote-buying
- AMCON says asset management partners to help recover N740bn
- DMO enlists support of sub-national entities in managing Nigeria’s rising public debt
- Brilliant Nigerian Lady Abisoye Wins CNN Heroes Awards 2018
- Sharing Trader Moni Weeks To Election Is Vote Buying - Dogara
- EFCC Reveals Why They Raided Atiku's Sons Apartment
- Nigeria's GDP Rises To 1.81% In Third Quarter, After Falling From 7% Since 2016
- Offa robbery: Police debunks report on missing stolen money
- 2019: Buhari’s arrests Sowore’s supporters
- 2019: Buhari’s arrests Sowore’s supporters
- Riverplate Clinch Copa Libertadores After Edging Out Boca
- FIFA & France Sign Agreement on African Football
- Tinubu Is My Friend, But I'll Free Lagos From Him - Jimi Agbaje
- Seriously? Human Bones Found Buried in Front of Popular Hotel in Lagos
- See Actor Gideon Okeke Getting His Lips Stitched After Being Brutalized By Policemen In Lagos
- I Was Aspiring To Be Chief Of Staff But God Turned The Table Around - Sanwo-Olu
- Atiku's Sons Apartment Raided By EFCC In Abuja
- Senator kicks against overriding Buhari’s veto
- Buhari constitutes committee on state’s judiciary autonomy
- Woman Brutally Attacked by Robbers on Her Way from Church in Rivers (Photos)