Lord Collins Unveils £25M Investment to Boost Africa's Food and Agriculture Sector at AFSF 2024

Highlighting the urgency of addressing food insecurity and climate change impacts, Lord Collins emphasized the critical role of enhancing Africa's food markets.

On September 4, 2024, Lord Collins of Highbury, the UK Minister for Africa, unveiled a significant £25 million investment into Africa’s food and agriculture sector during his keynote speech at the Africa Food Systems Forum (AFSF) 2024 in Kigali, Rwanda. This investment aims to support AgDevCo, a UK-based social impact investor dedicated to fostering African agribusinesses.

Highlighting the urgency of addressing food insecurity and climate change impacts, Lord Collins emphasized the critical role of enhancing Africa's food markets. With one in four individuals in Sub-Saharan Africa experiencing undernourishment, the UK’s financial commitment is poised to create substantial improvements in income and nutrition by 2036. The funding is anticipated to boost incomes by £128 million for participating farmers.

Lord Collins stated:

"Improving food markets will have a game-changing impact on individuals and families across Africa. Giving hardworking farmers stable incomes, creating jobs for the youth, and helping end malnutrition are central to our efforts."

He also acknowledged the challenges faced by early-stage agribusinesses, stating that:

"Without access to funding, no matter the drive and ingenuity, too many businesses can’t get off the ground. That’s why I’m pleased to announce that the UK intends to back a new $50 million facility called AgDevCo Ventures."

The UK government’s contribution will constitute over half of the total funds, with AgDevCo raising the remainder from other investors. AgDevCo Ventures, set to launch in early 2025, will channel early-stage investment into small and medium-sized enterprises (SMEs) within Africa's agriculture sector, focusing particularly on African-owned and managed businesses.

Daniel Hulls, CEO of AgDevCo, expressed gratitude for the partnership, stating:

"We are very grateful for the continued collaboration with the UK government. This funding will allow us to leverage third-party capital and invest in small, early-stage businesses, with a focus on creating jobs and increasing rural incomes."

The new facility aims to address the financing gap for small to medium-sized enterprises, which are crucial for scaling up Africa’s agricultural capacity. With global food demand expected to increase by 50% by 2050, and demand for food and animal feed in Africa projected to triple, this investment is intended to enhance both African and global food and nutrition security.

In addition to announcing the investment, Lord Collins is scheduled to meet with President Paul Kagame, Foreign Minister Vincent Biruta, and other senior Rwandan officials to further strengthen UK-Rwanda bilateral relations.