AgDevCo Ventures Raises $49M in First Close for East African Agri-SME Fund

AgDevCo Ventures has reached a first close of $49 million for a new East African agri-SME fund that will deploy between $1 million and $3 million per company into farming and agri-processing small and medium enterprises across the region. The closing combines $28 million of equity from AgDevCo funded by the UK’s Foreign, Commonwealth & Development Office (FCDO), $10 million in subordinated debt from the International Fund for Agricultural Development (IFAD), and $11.25 million from a consortium of senior lenders led by the Isenberg Family Charitable Foundation.

“This fills a critical financing gap for high-potential but underserved agri-SMEs.”

Stefan Freeman, head of investments at Ceniarth and a member of the senior lender consortium, said the vehicle “fills a critical financing gap for high-potential but underserved agri-SMEs.” He added: “Its approach to supporting these businesses is unique in the sector, combining an early-stage focus with long-term, flexible mezzanine financing and tailored technical assistance. This is precisely the gap that patient, concessional capital and blended finance are built to close.”

AgDevCo Ventures is an early-stage investment vehicle created within the AgDevCo group to complement the organisation’s main strategy, which focuses on later-stage companies with larger capital needs. The new fund targets a segment that has historically struggled to attract patient, long-term capital and is structured to attract private capital by layering different risk tranches. AgDevCo’s equity, sourced from FCDO funds, sits in a first-loss position, followed by IFAD’s subordinated debt, and then the senior lender consortium. The senior lender group includes the Small Foundation, A to Z Impact, the Rabo Foundation and the Netri Fundación Privada alongside the Isenberg Family Charitable Foundation.

• Fund first close: $49 million
• Equity: $28 million from AgDevCo (FCDO funds)
• Subordinated debt: $10 million from IFAD
• Senior lender consortium: $11.25 million led by Isenberg Family Charitable Foundation (includes Small Foundation, A to Z Impact, Rabo Foundation, Netri Fundación Privada)
• Target ticket size: $1m–$3m per agri-SME

The vehicle will be led by Christine Mwangi, who has six years’ experience with AgDevCo’s East African team based in Nairobi. Its board and investment committee include East African investors Maurice Nduranu, Ezra Musoke, Kim Kamarebe and Abel Boreto. AgDevCo Ventures said it expects to announce its first investments later in 2026.

Beyond direct capital, the fund’s structure is designed to stretch development finance and de-risk opportunities for private and institutional investors, enabling concessional and blended finance to back earlier-stage agribusinesses than is typical. AgDevCo Ventures projects that, over the next decade, its portfolio could benefit more than 128,000 smallholder farmers and create around 2,900 full-time jobs. The fund will prioritise a high proportion of Black African-owned and -led businesses and enterprises owned and led by women.

By combining first-loss equity, subordinated debt and senior lending, the fund seeks to provide long-term, flexible mezzanine financing alongside tailored technical assistance — an approach its backers argue can unlock private capital for early-stage agriculture while stretching public and philanthropic funds further. Market watchers will be watching the fund’s initial investments later this year as a test case for blended finance targeting agri-SMEs in East Africa.