(Corrects typo in spelling of AgDevCo in final para)
LAGOS (Reuters) -AgDevCo, an investor in early-stage African agriculture businesses, said on Thursday it has raised $90 million from British, U.S. and Norwegian funds to shore up investments that will help small farmers raise yields and reduce waste.
Small scale farmers in sub-Saharan Africa lack credit for seed and fertiliser, keep losing parts of their harvests because of a lack of proper storage and ready access to markets while they also grapple with droughts and floods.
AgDevCo, which was formed in 2010, typically invests across the agricultural value chain, from inputs to logistics through debt and equity.
Britain’s development finance institution, CDC Group and Norwegian investment fund for developing countries provided $50 million and $20 million as equity respectively while U.S. International Development Finance Corporation provided $20 million in lending.
“We are excited that our vision is shared by our new funders, who recognise the important contribution that AgDevCo investments can make to productivity, sustainability, and inclusivity in Africa,” Keith Palmer, AgDevCo’s founder and chairman said.
John Owers, head of Mid/Large Funds at CDC told Reuters that its funding would help AgDevCo scale up activities, including helping farmers in “practices to reduce carbon emission and reduce waste which is very high in Africa.”
AgDevCo’s investments include companies involved in export crops like avocados and macadamia and staple crops such as grains to help boost local output and cut imports.
(Reporting by MacDonald DzirutweEditing by Tomasz Janowski)
