The UK’s Minister for Africa, Lord Collins, has pledged £25 million to accelerate the growth of African agribusinesses.
Speaking at the Africa Food Systems Forum in Kigali, Rwanda, he outlined the UK’s commitment to bolstering Africa’s agriculture sector, improving food security, and tackling the climate crisis through innovative funding and partnerships.
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Strengthening Africa’s Agricultural Sector
In a world facing increasing food insecurity and climate challenges, Africa’s agriculture holds the potential to play a significant role in feeding the continent and the world.
Recognising this, Lord Collins announced the UK government’s £25 million contribution to AgDevCo, a UK-based social impact investor that focuses on investing in early-stage African agribusinesses. This move is part of the UK’s broader commitment to supporting African food systems while addressing climate change.
During his keynote speech at the forum, Lord Collins emphasized the importance of this initiative for both African farmers and global food supply.
“Improving food markets will have a game-changing impact on individuals and families across Africa,” he said. “Giving hard-working farmers stable incomes, creating jobs for the youth, and helping to end malnutrition.”
AgDevCo Ventures: Supporting Agribusiness Growth
At the heart of this initiative is AgDevCo Ventures, a new investment facility set to launch in early 2025. This facility, supported by the UK’s £25 million contribution, will focus on investing in small and medium-sized enterprises (SMEs) in Africa’s agricultural sector, particularly those owned and managed by Africans.
According to Daniel Hulls, CEO of AgDevCo, this facility will
“leverage third-party capital and go back to investing in small, early-stage businesses.”
The goal is to drive growth in Africa’s agribusiness sector by providing crucial funding and expertise to small-scale enterprises that often lack access to finance.
Projected Impact by 2036
| Funding Area | UK Contribution (£) | Projected Farmer Income Increase (£) | Target Date |
|---|---|---|---|
| AgDevCo Ventures Investment | 25 million | 128 million | 2036 |
Building Climate Resilience and Advancing Technology
Climate resilience is at the forefront of this funding initiative. African farmers face increasingly unpredictable weather patterns, and the AgDevCo facility is designed to help them adapt.
By promoting climate-smart agricultural practices, the facility aims to safeguard African food production in the face of climate change.
Moreover, the investment will support technological advancements, offering farmers access to new crop varieties, innovative farming techniques, and digital tools. These innovations are essential for improving both productivity and sustainability across Africa’s agricultural sector.
Food Security and Economic Growth
The UK’s investment aligns with global efforts to enhance food security and economic growth. With Africa’s population projected to surge, food demand is expected to triple by 2050. The UK’s contribution will not only help meet this growing demand but also create jobs, improve rural incomes, and support poverty reduction efforts.
This investment holds the potential to significantly impact the lives of millions of smallholder farmers across Africa. By improving agricultural productivity, the initiative contributes to broader economic growth, reducing poverty and fostering sustainable development.
Collaborating with the Private Sector
The UK government is working closely with private investors to ensure long-term success for African agribusinesses. This collaboration aims to mobilise additional funding, opening up further opportunities for farmers to access markets and resources.
Through AgDevCo’s efforts, early-stage African agribusinesses will gain the support they need to scale up and thrive in the competitive global market.
Sources: THX News, Foreign, Commonwealth and Development Office & Lord Collins of Highbury.
