The Agriculture Financing Initiative (AgriFI) is providing long-term investment capital to commercially sustainable enterprises operating across agricultural and forestry value chains in developing and emerging markets.

Funded by the European Union and managed by EDFI Management Company, AgriFI is an impact investment facility focused on businesses that can strengthen inclusive and sustainable value chains while delivering measurable development impact.

The initiative is particularly aimed at enterprises working with smallholder farmers, raising incomes, creating employment and advancing sustainable agricultural and forestry production.

Eligible applicants are primarily privately owned enterprises and financial intermediaries. These include small and medium-sized enterprises, financial institutions, impact funds, agrifood businesses, forestry enterprises and other qualifying businesses operating within agricultural and forestry value chains.

To qualify, potential investees are expected to demonstrate a viable and sustainable business model, a strong professional track record and financial sustainability. They should also have committed management and shareholders, alongside clear potential to generate measurable development impact.

AgriFI is not primarily designed for seed-stage businesses.

The facility offers investments ranging from €500,000 to €5 million, with financing generally available for 5–10 years or longer, depending on the investment and the requirements of the business.

AgriFI may provide financing through several instruments, including senior debt, junior debt, quasi-equity and equity. Its approach is based on providing patient and flexible capital that can be adapted to enterprises operating in agricultural and forestry markets.

The investment facility supports businesses involved in areas such as smallholder farmer inclusion, agricultural production, food processing, market access and agricultural value-chain development. It also covers job creation, sustainable forestry, climate resilience and environmentally sustainable business practices.

Businesses able to show that their operations create economic opportunities for farmers and communities while strengthening sustainable value chains may be particularly relevant to the facility.

Geographically, AgriFI focuses on eligible developing and emerging markets. Its investments are intended to support enterprises and financial intermediaries contributing to inclusive and sustainable agricultural and forestry value chains.

The facility differs from conventional short-term business financing through its focus on long-term investment capital. This is intended to help eligible businesses expand their operations and strengthen their position within agricultural and forestry value chains.

AgriFI can also structure financing around the needs and stage of eligible businesses, with debt, equity and quasi-equity instruments available.

Enterprises interested in the opportunity are expected to review AgriFI’s investment criteria and submit an investment proposal through the programme’s application process.

Businesses that advance through the assessment process may be asked to provide documents required for due diligence. These may include business plans, financial projections, audited financial statements, corporate and ownership information, as well as other required documentation.

Learn More and Apply: AgriFI Official Investment Page

Source: msmeafricaonline