AgDevCo partners Root Capital to invest $5m in macadamia sector
British firm AgDevCo, a specialist investor in African agribusinesses that provides growth capital and supports has signed a partnership with Root Capital, a financial institution that funds the agriculture sector in Sub-Saharan Africa.
The terms of partnership with Root Capital is in line with decision of AgDevCo to provide a US$5.0 million facility to a market-leading consortium of macadamia processors and exporters.
The largest processor, Afrimac, was founded in 2012 and operations have expanded rapidly to reach over 5,000 tonnes of macadamia purchased per year.
Other members of the consortium are Sagana Nuts, The Village Nut and Jumbo Nut.
All processing facilities are located in Kenya’s prime macadamia producing areas in the central counties.
AgDevCo’s financing will enable the consortium to buy nuts from 21,000 smallholder farmers to be processed into shelled kernels for export.
Meanwhile, Afrimac has strong relationships with its farmers, providing macadamia and avocado seedlings as well as farmer training.
In the market, Nuts are weighed electronically and purchased directly in the field.
Then, market information is uploaded in real-time which allows payments to be made within 24 hours via mobile money.
Kenya is the third largest producer of macadamia nuts after Australia and South Africa. The Afrimac consortium accounts for about an eighth of the Kenyan industry.
AgDevCo is actively seeking new investment in the East Africa region, offering long-term debt and equity of up to $10 million to agribusinesses that create quality jobs and engage fairly with smallholder farmers.
AgDevCo partners Root Capital to invest $5m in macadamia sector.
AgDevCo is a social impact investor and project developer working in the African agriculture sector. The company supports small and medium-sized enterprises involved in farming, agri-processing, and logistics, with the aim of creating jobs and income-earning opportunities for African farmers.