(Ecofin Agency) – Backed by Bamboo Capital and Injaro Investments, the investment vehicle ABC Fund, which is working to increase its operations with agri-food SMEs in Africa, has attracted an American institution in its funding round.
The Agri-Business Capital Fund (ABC Fund) recently obtained a $5 million investment from the American financial institution, Bank of America. This is the first mid-level investment made for the benefit of the vehicle.
The capital mobilized will make it possible to strengthen financing in the form of loans and equity investments in farms and agri-food SMEs in sub-Saharan Africa.
“This additional capital enables ABC Fund to support more rural agricultural SMEs and farmer cooperatives. We are delighted with this development, and we look forward to the results of this operation,” said Jerry Parkes, managing director of Injaro Investments.
This investment comes as ABC Fund works to secure public and private capital to further support agricultural value chains on the continent, and strengthen rural farmer organizations.
ABC Fund, which is an initiative of the International Fund for Agricultural Development (IFAD) in partnership with the European Union, the Organization of African, Caribbean and Pacific States (OACPS), the Government of Luxembourg and the Alliance for Green Revolution in Africa (AGRA) claims to have made more than 20 investments in sub-Saharan Africa and Latin America so far.
Despite the fact that Africa has 60% of the world’s unexploited arable land, agricultural production accounts for only 14% of sub-Saharan Africa’s GDP, and about 80% of jobs. Investments in the agricultural and agri-food sector could thus strengthen production and exports.
Chamberline Moko
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