Sahel Capital – FAFIN

West Africa,Africa Food and agriculture

Sahel Capital is a private equity firm focused on the agriculture, agribusiness, manufacturing, and consumer goods sector in West Africa, particularly in Nigeria.

The Fund for Agricultural Finance in Nigeria (FAFIN) was established in 2014.

FAFIN invests in high-growth enterprises across the agricultural value chain in Nigeria, primarily in processing, livestock, storage, distribution, organic farming products and production.

As well as providing capital to these companies, the fund also offers a technical assistance facility to help strengthen their capacity.

Our investment

In 2017, CDC committed $15 million to FAFIN through the Impact Fund. Other investors include the African Development Bank, the Dutch Good Growth Fund, the Federal Government of Nigeria, and KfW, the German development bank. Other investors include the African Development Bank, the Dutch Good Growth Fund, the Federal Government of Nigeria, and KfW, the German development bank. 

Expected impact

Agriculture plays a vital role in the Nigerian economy - accounting for 60 per cent of labour force and 24 per cent of GDP. 80 per cent of farmers in Nigeria own less than 10 hectares of land, and rely on SMEs in the sector to access the growing Nigerian consumer market.

Despite their importance, agricultural SMEs struggle to access long-term flexible finance. FAFIN is trying to tackle this problem by providing capital to this under-served group. These SMEs can help strengthen value chains, provide market access to smallholder farmers, and employ rural populations.

So far, FAFIN has invested in high growth enterprises along different agricultural value chains including a dairy producer and processor, a poultry farm, a cassava starch processing company, and a rice producer and processor.

Environmental and social aspects

We work closely with the first-time team on managing the environmental and social risks associated with investments into the agriculture value chain.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, West Africa
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Nigeria
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Food and agriculture
Website:
https://www.sahelcp.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Sahel Capital
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
June 2017
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$15m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
L&Z Integrated Farms Ltd

An integrated dairy producer and processor that produces yogurt, fresh milk and ice cream from its dairy operations

View investment details

Nigeria Africa, West Africa Food and agriculture February 2015 Active
Diamond Pearl Agro Allied Limited

An edible oil processor plant and crushing plant that produces vegetable oil and exports charcoal to Europe

View investment details

Nigeria Africa, West Africa Food and agriculture December 2015 Active
Dayntee Farms Limited

An integrated poultry farm which produces table eggs, day-old chicks and point of lay birds.

View investment details

Nigeria Africa, West Africa Food and agriculture September 2016 Active
Crest Agro Products Limited

An integrated cassava starch processing company. The company produces fresh cassava roots and has commenced the construction of a 60MT/day cassava starch processing plant.

View investment details

Nigeria Africa, West Africa Food and agriculture April 2017 Active