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AgDevCo Ventures has reached a $49 million first close to invest in early-stage agri-SMEs in East Africa.
The vehicle is a subsidiary of AgDevCo and seeks to address a gap in the market for long-term capital for early-stage agricultural SMEs.
AgDevCo Ventures will make investments of $1 million to $3 million into farming and agri-processing companies. The aim is to help build the next generation of African agribusinesses. The vehicle complements AgDevCo’s main strategy which focuses on later-stage companies with larger investment needs.
The first close includes $10 million in subordinated debt from the International Fund for Agricultural Development (IFAD) and $11.25 million from a senior lender consortium led by the Isenberg Family Charitable Foundation. The consortium includes Small Foundation, A to Z Impact, Rabo Foundation and Netri Fundación Privada. The external capital is supported by a $28 million equity injection from AgDevCo, using funds from the UK’s Foreign, Commonwealth & Development Office.
AgDevCo Ventures is led by Christine Mwangi, who has been with AgDevCo’s East African 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.
Donal Brown, associate vice-president of IFAD, said: “IFAD is pleased to provide an investment of $10 million to AgDevCo Ventures Limited. As one of the main investors, IFAD expects AgDevCo Ventures’ strategic investments into inclusive agricultural companies to support rural transformation in East Africa and complement IFAD’s current work.”
AgDevCo CEO Daniel Hulls commented: “We are grateful to the funders that are joining us. 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.”
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