Investment

SEFAA investees must be able to show they deliver measurable, sustainable and substantial benefits to smallholder farmers (SHFs). Either by sourcing crops or animals from them or by providing products and services that enhance SHF productivity or address other challenges in their business eco-system such as lack of finance or access to information or storage. SEFAA defines smallholder farmers as those cultivating less than 2 hectares of arable cropland in favourable or less
than 10 hectares in less favourable areas/regions or managing up to 10 head of livestock

• SEFAA invests in agri-food enterprises across the entire agricultural value chain (food and cash crops) that provide direct or indirect benefits – increased income or enhanced productivity – to smallholder farmers.
• The fund is particularly interested in working with social agricultural enterprises operating higher up the eco-system e.g. acting as intermediaries because of the potential for greater impact they may offer.

• Agro-dealers or input providers
• Processors
• Equipment suppliers
• Agri-tech
• Logistics providers
• Intermediaries addressing productivity, market access and finance limitations of SHFs
• Other agricultural businesses
  

• SEFAA offers flexible financing and can make investments in loans, equity or quasi-equity.
• Investments may be in local currency, USD or EUR. All investments are considered on a case-by-case basis.
• Ticket size is from US$300,000 to US$2.4 million and sponsors are expected to show a level of commitment to the business in form of equity participation.

• Company must be formally registered
• Operate in one or more of SEFAA’s target countries
• Has operated in relevant market for at least 2 years and successfully completed proof-of-concept phase
• Company is profitable or has a credible plan to achieve cashflow breakeven, and profitability soon afterwards, in the short to medium-term
• Compliant with applicable national laws, local regulation and/or with relevant industry rules and license requirements
• Complies with SEFAA’s anti-money laundering and anti-corruption policies