AgDevCo announced a pair of agribusiness investments last week for a combined total of $6.55 million. The precise terms and structure of both deals were not disclosed.
The larger of the two sees the social impact investor back Katito Farming Enterprises with $5.05 million. The transaction, which is the second for AgDevCo in Northern Zambia, is a key plank in the investor’s regional agricultural hub, which was established to stimulate investment and development along the entire agricultural value chain in the Mbala area, close to Zambia’s border with Tanzania. Along with Saise Farming Enterprises, AgDevCo’s original investment in the area, it’s expected that Katito Farming Enterprises will provide the critical mass to attract agricultural input suppliers, aggregators, off-takers, logistics providers and value-adders including processing companies, systemically benefiting 10,000 smallholder farmers in Northern Zambia.
The smaller of the two deals is a $1.5 million investment in Citrum SA in partnership with Nika, a group of Mozambican investors. The capital will be used to finance the capital expenditures, including irrigation, and operational costs required to rehabilitate a banana plantation and help expand its hectarage and yield. The company’s aim is to restore banana production to be the core focus for the farm, which currently grows citrus fruits, selling the produce both to local markets and as exports to South Africa. This investment will go a long way towards building one of the only Mozambican-run banana farms in the country.