Minister for Africa pledges funding to accelerate growth in Africa agriculture sector

Lord Collins announces £25 million investment into African food and agriculture sector during keynote speech at the Africa Food Systems Forum (AFSF) in Kigali, Rwanda; Africa Minister reiterated the UK’s commitment to partner with Africa on boosting its food trade, tackling the climate crisis and strengthening food and nutrition security to senior African leaders; Lord Collins will also meet the President, Foreign Minister and other senior Rwandan decision-makers to strengthen bilateral relations between the UK and Rwanda. 

Africa Minister Lord Collins has today [4 September] announced UK backing for a new investment facility that will accelerate the growth of Africa’s food and agriculture sector.

During his keynote speech at the Africa Food Systems Forum (AFSF) 2024, Lord Collins committed to providing £25 million for AgDevCo, a UK-based social impact investor dedicated to investing in African agribusinesses.

In the face of conflict and climate change, communities across Africa are grappling with high levels of hunger and malnutrition. In Sub-Saharan Africa, 1 in 4 are undernourished. Investing in Africa’s food markets is a crucial means of working with farmers, helping those at the forefront of the climate crisis and moving towards a world free from poverty.

The UK’s contribution is expected to yield an increase in income of £128 million for the farmers who benefit by 2036.

The Minister for Africa, Lord Collins of Highbury said:

“Improving food markets will have a game changing impact on individuals and families across Africa. Giving hard working farmers stable incomes, creating jobs for the youth and helping end malnutrition.”

“Without access to funding, no matter the drive and ingenuity, too many businesses can’t get off the ground.”

“That’s why I’m pleased to announce that the UK intends to back a new $50 million facility called AgDevCo Ventures. The UK will put in over half the funds, with AgDevCo collecting funds from other investors. AgDevCo’s funding and expertise will enable early-stage African agribusinesses to grow and increase Africa’s resilience to climate change.”

This funding will support the creation of AgDevCo Ventures, which will channel early-stage investment into small and medium-sized enterprises working within Africa’s agriculture sector. The UK government is contributing over half of the funds with matching contributions being raised from other investors, resulting in $50 million overall for the planned launch of AgDevCo Ventures in early 2025.

The new funding facility will work with small agricultural enterprises across Africa, with a particular focus on African owned and managed businesses.

Daniel Hulls, CEO of AgDevCo said:

“We are very grateful for the continued collaboration with the UK government.”

“This funding will allow us to leverage third-party capital and go back to investing in small, early-stage businesses.”

“We are excited about developing a new AgDevCo Ventures portfolio, and expect it to be high impact, deliver jobs and increased rural incomes by building the next generation of African agri-SMEs.”

There is evidence that small to medium-sized enterprises lack the financing options necessary to scale up. As a result, the UK is working alongside partners to pioneer new ways to finance agribusiness and mobilise other investors.

The demand for food and animal feed in Africa is projected to triple between 2010 and 2050, with the demand for food globally set to increase by 50%. UK investment will look to improve both African and global food and nutrition security by enabling enterprises in the agriculture sector to be better able to cater to the rising demand.

Distributed by APO Group on behalf of United Kingdom Foreign, Commonwealth and Development Office.