The government of the United Kingdom (UK) has announced £25 million investment into African food and agriculture sector boosting its food trade, tackling the climate crisis and strengthening food and nutrition security.
This announcement was made by Lord Collins of Highbury, Africa Minister while reiterating the UK’s commitment to partner with the continent to senior African leaders during the just concluded Africa Food Systems Forum (AFSF) in Kigali, Rwanda.
He also announced backing for a new investment facility that will accelerate the growth of Africa’s food and agriculture sector.
According to Collins, the fund will be committed to AgDevCo, a UK-based social impact investor dedicated to investing in African agribusinesses.
The UK’s investment is projected to boost farmers’ income by £128 million by 2036. “Improving food markets will have a transformative impact on individuals and families across Africa, providing stable incomes for hardworking farmers, creating jobs for youth, and combating malnutrition. However, without funding, even the most driven businesses struggle to thrive,” a UK government spokesperson said.
To address this challenge, the UK plans to support a new $50 million investment facility called AgDevCo Ventures, contributing over half of the funds, with the remainder sourced from other investors. AgDevCo’s funding and expertise will empower early-stage African agribusinesses, enhancing the continent’s resilience to climate change.
AgDevCo Ventures will provide early-stage investments to small and medium-sized enterprises in Africa’s agriculture sector, with a focus on African-owned and managed businesses. The facility aims to launch in early 2025, working closely with agribusinesses to drive growth and innovation.
Daniel Hulls, CEO of AgDevCo, expressed gratitude for the UK’s continued collaboration: “This funding will enable us to attract third-party capital and resume investing in small, early-stage businesses. We are excited to develop a new AgDevCo Ventures portfolio, which we expect will have a high impact by creating jobs and increasing rural incomes through the next generation of African agri-SMEs.”
Small to medium-sized agribusinesses often lack the financial options needed to scale up, and the UK is partnering with others to explore new financing avenues and attract additional investors. With food and animal feed demand in Africa expected to triple between 2010 and 2050—and global food demand projected to increase by 50%—this investment will help improve food and nutrition security both in Africa and worldwide by equipping agricultural enterprises to meet rising needs.
This announcement was distributed by the APO Group on behalf of the United Kingdom Foreign, Commonwealth and Development Office.
