Apollo Agriculture
Introduction
Apollo Agriculture is an agri-fintech company that enables smallholder farmers in Kenya and Zambia to engage in profitable and sustainable agriculture. Through innovative use of technology, data and a scalable distribution model, Apollo offers small-scale farmers a comprehensive solution that includes inputs, counselling, insurance and financing.
Swedfund's investment will enable Apollo to develop its operations to increase production capacity in the agricultural sector in Kenya with the support of new technology.
Co-investors include ImpactConnect (DEG).
Half of Swedfund's loan is covered by the EU guarantee Global Gateway, one of the financing tools of the EU's strategy for sustainable investment in areas such as infrastructure, digitalisation and energy.
Read more in our press release, Swedfund to support smallholder farmers in Kenya
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.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Food systems
In the Food Systems sector, we contribute to increased food production, less waste during production and increased sustainability throughout the value chain.
Value creation
Impact
The investment contributes to the development and scaling up of sustainable processes and practices in the Kenyan agriculture and food sector. Furthermore, the investment is expected to contribute to jobs and other income-generating opportunities locally. The investment contributes to women's economic empowerment by increasing access to capital and products and services for women. The investment promotes adaptation and resilience in the agricultural sector in geographies affected by climate change.
Additionality
Swedfund's investment is financially additional as it is made in a high-risk context where access to capital is limited, the business environment is challenging, and poverty rates are high. 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 Medium-High risk (B+) based on company’s investment strategy, E&S risks/impact exposure. Environmental risks include inherent E&S risks of agri-suppliers, physical climate risks, E&S monitoring, review and reporting. Social risks relate to labour rights in operating contexts, Client Protection Pathway certification and occupational, health and safety (OHS) practices.
ESG mitigation measures
Development of the company's environmental and social management system (ESMS). Swedfund agreed on an ESG action plan (ESGAP) focused on labour conditions, customer protection, reporting of greenhouse gas emissions, E&S training, business integrity and good corporate governance.
Applicable IFC Performance Standards
IFC Performance Standards (PSs) 1, 2, 3, 4 & 6 are actively applicable.
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.