AgDevCo
Introduction
AgDevCo invests in small and medium-sized agribusinesses in sub-Saharan Africa. The company invests across the agricultural value chain, from primary production to logistics, ensuring sustainable practices and improved resilience.
AgDevCo's investments have already benefited over two million smallholder farmers, improving their livelihoods, climate resilience and food security.
Swedfund's investment will support small and medium-sized agribusinesses to increase productivity and expand food systems across sub-Saharan Africa, where gaps in value chains create inefficiencies, hindering trade and investment.
Co-investors include BII and Norfund.
Read more in our press release: Swedfund, BII and Norfund invest $85 million in AgDevCo to support agribusinesses in Africa
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Value creation
Impact
The investment contributes to African agribusinesses through improved efficiency, productivity and sustainability in regional agricultural markets. It is expected to contribute to job creation & other income-generating opportunities locally. It also contributes to the promotion of women's economic empowerment by promoting female leadership & increasing access to capital and capacity building. It promotes adaptation & resilience in the agricultural sector in geographies affected by climate change.
Additionality
Swedfund's investment is financially additional as the investment is in a challenging context with high risks, where access to capital is limited and poverty is high. The investment is expected to contribute to mobilising capital. The investment is value additional through a strong focus on active value creation during the investment phase, where environmental and social issues and corporate governance are prioritised.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is High Risk (A) based on potential E&S risks and impacts inherent to the portfolio and pipeline projects, contextual risks in target countries and agricultural sectors, including climate risk, human rights, GBV/SEAH and client protection.
ESG mitigation measures
Development of the company's environmental and social management system (ESMS). Other prioritised issues include human rights, gender equality, risks/impacts on biodiversity, business integrity and good corporate governance.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-2 are applicable at the company level, and to the majority of AgDevCo’s financed transactions PS 1-6. PS 7-8 is assessed on a case-by-case basis when triggered.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.