Africa Food Security Fund – Ghana

The Africa Food Security Fund (AFSF) is an impact investment fund that seeks to invest in small and medium-sized businesses (SMEs) operating across agricultural value chains in Africa, with a particular focus on Sub-Saharan Africa. The Fund’s investments primarily target primary production, agricultural input and service providers, as well as agro- and food-processing companies. AFSF reached its second close in 2020. 

The target capitalization was set at USD 100 million, and the Fund’s lifetime was established at 10 years. The Fund is the successor to the AAF SME Fund, which commenced operations in 2014 and in which the CFC invested USD 2 million. Key institutional investors in AFSF include CDC, DGGF, EIB, AfDB, BOAD, and BIDC. The investment was made with the expectation that AFSF would invest in approximately 10 businesses over its lifetime. Following the intervention, a 30% increase in permanent and seasonal employment was anticipated. The Fund is also expected to work with at least 300 smallholder farmers across two-thirds of its portfolio companies. These assumptions are expected to result in approximately 20,250 post-investment beneficiaries, with 450 new jobs created and 1,500 jobs sustained across the portfolio.

SDGs