AgDevCo has secured £25 million from the UK’s Foreign, Commonwealth, and Development Office (FCDO) to launch AgDevCo Ventures, a new investment initiative designed to support early-stage agricultural small and medium-sized enterprises (agri-SMEs). Initially, AgDevCo Ventures will focus on East African nations where AgDevCo already operates—Kenya, Uganda, Tanzania, and Rwanda—with plans to expand into additional African countries over time. AgDevCo Ventures will target smaller investments, ranging between £0.75 million and £2.5 million, with the aim of nurturing the next generation of African agribusinesses. The venture’s mission is to bridge the “missing middle,” providing capital to businesses that often struggle to attract private investment due to perceived risks and high transaction costs. AgDevCo CEO, Daniel Hulls said: “We are very grateful for the continued support from 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 building the Ventures portfolio and expect it to be high impact, delivering jobs and increased rural incomes and helping to build the next generation of African agri-SMEs.” The UK 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." AgDevCo has historically invested in a wide range of African countries, supporting agriculture projects across the continent. AgDevCo Ventures will build on this legacy by focusing on smaller, early-stage enterprises, with an emphasis on African and female-owned or managed businesses. AgDevCo Ventures will be headquartered in Nairobi, leveraging the group's existing expertise while raising an additional £20 million from development finance institutions and family offices. The subsidiary aims to support commercial agriculture, foster job creation, and connect smallholder farmers with new market opportunities, strengthening Africa’s agricultural resilience and food security. Operations for AgDevCo Ventures are expected to commence in early 2025, expanding the group's footprint across Africa.
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