The Dutch Good Growth Fund is mulling a $7 million commitment to Sahel Capital‘s Fund of Agricultural Finance in Nigeria or FAFIN. The fund, which held a $34 million close in July last year, is aiming to raise a total of $55 million to invest in equity and quasi-equity deals in growth stage SMEs in the West African country.
DGGF joins a roster of backers who have already supported the fund. They include the Nigerian Government’s Federal Ministry of Agricultural and Rural Development, KfW, the German development bank and Nigeria’s Sovereign Investment Authority. As well as delivering competitive investment returns, FAFIN aims to generate social and economic benefits to Nigeria’s agricultural sector by improving the access to financing for agricultural enterprises.
It’s expected the investment will close during the third quarter of 2016.