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AgDevCo Ventures, a specialist investor in African agriculture within the AgDevCo group, has announced a first close at $49 million to invest $1–3 million in farming and agri-processing companies across East Africa.
The vehicle addresses a market gap where agri-SMEs struggle to access long-term capital at the stage between seed funding and the larger cheques that mainstream impact investors typically write. Back in April, AgDevCo made a $15 million follow-on investment in a Kenyan aquaculture startup that produces and distributes Nile tilapia fish,
“AgDevCo Ventures is a core part of our overall strategy. It returns us to the part of the market where we started almost two decades ago, where the gap in investment provision is most striking. We’re especially pleased to be bringing private investors into this round, which makes development finance go further,” said Daniel Hulls, CEO of AgDevCo and chair of AgDevCo Ventures.
The first close brings together development finance, concessional lenders, and private capital. AgDevCo injected $28 million in equity using funds from the UK’s Foreign, Commonwealth and Development Office.
The International Fund for Agricultural Development (IFAD) is providing $10 million in subordinated debt.
A consortium of senior lenders led by the Isenberg Family Charitable Foundation and including Small Foundation, A to Z Impact, Rabo Foundation, and Netri Fundación Privada contributed $11.25 million.
AgDevCo Ventures manages $400 million and has made over 88 investments. It complements the main strategy of focusing on later-stage companies by also investing in earlier-stage businesses, similar to what the firm did nearly two decades ago.
The vehicle is now fully operational and led by Christine Mwangi, who has been with AgDevCo’s East Africa team in Nairobi for six years. The board and investment committee include Maurice Nduranu, Ezra Musoke, Kim Kamarebe, and Abel Boreto.
AgDevCo Ventures expects to announce its first investments later in 2026 and over the next decade aims to benefit more than 128,000 smallholder farmers and create approximately 2,900 full-time jobs. The portfolio targets a high proportion of Black African-owned and women-led businesses.
“AgDevCo Ventures fills a critical financing gap for high-potential but underserved agri-SMEs. Its approach is unique in the sector, combining an early-stage focus with long-term, flexible mezzanine financing and tailored technical assistance,” said Stefan Freeman, head of investments at Ceniarth, on behalf of the consortium of senior lenders.
A few days back, Small Foundation, a Dublin-based philanthropic foundation, announced its support for AgDevCo Ventures by providing patient finance to early-stage agribusinesses across East Africa.
Earlier this year, AgDevCo received an A‑ issuer credit rating with a stable outlook from S&P Global Ratings, making it one of only a handful of development‑focused investment vehicles globally to achieve an investment‑grade rating.
