Sahel Capital, a prominent investor in the food and agriculture sector in sub-Sahara Africa, is thrilled to announce a US$1 million trade finance facility extended to Sourcing and Produce from its Social Enterprise Fund for Agriculture in Africa (“SEFAA”) fund. Launched in 2021 with KfW as the anchor investor, SEFAA aims to stimulate economic activities among smallholder farmers by empowering the social enterprises that engage with them.
S&P is a trading company specialising in procuring and distributing agricultural commodities sourced from Africa, particularly Nigeria and Tanzania, to customers globally. The Company has successfully developed supply chain links with over 80 smallholder farmers, in Jigawa and Kano states in Northern Nigeria, from whom they currently source their produce.
"Companies like S&P provide a double advantage to their host countries. They generate export earnings while also building the capacity of smallholder farmers with whom they partner. S&P’s operations in Nigeria and Tanzania have expanded over the past year through the incredible leadership of their management team,” stated Deji Adebusoye, a Principal at Sahel Capital. “We at Sahel are quite excited about this opportunity and look forward to continued partnership with the company.”
The loan will enable S&P to expand its hibiscus flower supply chain and finance the aggregation of the flowers from smallholder farmers. Through SEFAA’s technical assistance facility, Sahel will support S&P to organise the farmers into cooperatives to improve their productivity and provide access to inputs. This will significantly impact the income and livelihood of these hibiscus farmers and their families.
Lanre Awojoodu, Founder & Managing Director of S&P, expressed gratitude for Sahel Capital's support and trust in their vision. "This investment was very timely for our operations as it helped us secure the market for these flowers sourced from several smallholder farmer communities. Through our partnership with Sahel, we can significantly scale up our operations and expand into other African countries, extending our reach.”
This loan facility is a testament to Sahel Capital's unwavering commitment to generating positive social and economic change in Africa through impactful investing. This collaboration will strengthen the hibiscus value chain, creating export earnings and prosperity for smallholder farmers across the region.
Sahel Capital currently manages two funds: Fund for Agricultural Finance in Nigeria (“FAFIN”), which has investments in SME agribusinesses in Nigeria, and Social Enterprise Fund for Agriculture in Africa (“SEFAA”), which provides primarily structured debt to agribusiness SMEs across 13 countries in sub-Saharan Africa. Sahel Capital is also raising capital for a successor fund – Sahel Capital Agribusiness Fund II, which will focus on investment opportunities across West Africa.
For more information, please contact: