Sahel Capital, a prominent private investment firm dedicated to advancing Africa’s agribusiness sector, has recently announced a significant milestone for its Social Enterprise Fund for Agriculture in Africa (SEFAA). The fund has secured a $10 million investment from the Mastercard Foundation Africa Growth Fund, managed by Mennonite Economic Development Associates (MEDA) in Mauritius. This capital injection will be utilized to expand financing opportunities for small and medium-sized agribusiness enterprises (SMEs) across sub-Saharan Africa.
The primary goal of SEFAA is to strengthen agricultural ecosystems, enhance food security, and improve the livelihoods of smallholder farmers in Africa. With the new investment, the fund is expected to create over 10,000 jobs for women and youth in 13 African countries. Agriculture plays a crucial role in Africa’s economy, employing over 60% of the workforce and contributing significantly to the GDP of sub-Saharan Africa.
Launched in 2021, SEFAA aims to address the financing gap faced by financially viable agribusiness SMEs that are often excluded from traditional lending due to collateral requirements and perceived risks. By enabling these SMEs to expand their operations, access new markets, and adopt innovative technologies, the fund not only benefits rural communities but also strengthens value chains in food production, processing, and distribution.
Mezuo Nwuneli, Managing Partner of Sahel Capital, expressed his enthusiasm about the Mastercard Foundation Africa Growth Fund’s investment in SEFAA. He highlighted the fund’s impact in improving income opportunities for smallholder farmers and empowering agri-SMEs to engage with them, solidifying SEFAA’s position as a leading fund in the food and agriculture sector in Africa.
The collaboration between Sahel Capital, MEDA Mauritius, and the Mastercard Foundation Africa Growth Fund underscores a shared commitment to providing catalytic capital for SMEs and promoting sustainable employment. Dorothy Nyambi, President and CEO of MEDA, emphasized the collaborative values driving the partnership, focusing on advancing economic opportunity through inclusive finance and job creation for women and youth.
The Mastercard Foundation Africa Growth Fund, a $200 million fund-of-funds initiative, aims to unlock capital for African SMEs by investing in gender-diverse fund managers and offering capacity-building support. The investment in SEFAA aligns with the Foundation’s Young Africa Works strategy, which aims to create job opportunities for young Africans, particularly women, by 2030.
With the new $10 million commitment, SEFAA is poised to expand its reach, provide broader access to finance, and deepen its impact across sub-Saharan Africa. By enabling agribusiness SMEs to access growth capital, the fund continues to empower smallholder farmers, promote gender inclusion, drive innovation, and create sustainable jobs for Africa’s burgeoning youth population—a vital component for the continent’s economic resilience.
