The Fund for Agricultural Finance in Nigeria (“FAFIN”) is an innovative agribusiness-focused private equity fund that provides tailored investment capital and technical assistance to high-growth, commercially attractive agricultural SMEs across all regions in Nigeria using quasi-equity, equity and structured debt instruments. FAFIN was established to address a portion of the estimated US$5 billion funding gap in long-term, growth-oriented finance for agribusiness SMEs in Nigeria, while ensuring sustainable development impact within the sector. FAFIN’s investors include the African Development Bank, British International Investment, Dutch Good Growth Fund (managed by Triple Jump), KfW Development Bank, the Nigerian Federal Government (via the Federal Ministry of Agriculture and Rural Development and the Federal Ministry of Finance), and the Nigeria Sovereign Investment Authority.
- Start Date: 2014
- Fund Size: USD ($) 65.9million
- Investment Instruments: Equity and quasi-equity investments
- Geographical Focus: Nigeria
- Investment Ticket Size: $500,000 - $8.2 million, with a preferred investment size at the higher end of the range.
- Investment Focus: FAFIN invests in opportunities that improve food security, enable import substitution, fix challenges along value chains, and meet the growing food consumption demand of Nigeria’s growing middle class.
- Other Fund Features: A separate US$4.2million fully funded Technical Assistance Facility that provides grant funding to help portfolio companies strengthen core operations, mitigate risks, and improve sustainability practices.