At a Glance
- Sahel Capital secures $29 million first close for blended-finance agribusiness fund focused on Nigeria.
- Fund targets $75 million to strengthen food security and climate resilience across West Africa.
- Investments span production, processing, logistics and distribution across key agricultural value chains.
Sahel Capital, a Lagos-based private investment firm focused on sub-Saharan African food and agriculture, has raised $29 million in a first close for its second growth equity vehicle, reinforcing investor appetite for agribusiness investment in Nigeria as food security pressures mount across West Africa.
The fund, Sahel Capital Agribusiness Fund II (SCAF II), is targeting a final close of $75 million within the next 12 months, according to the firm.
Backed by Germany’s KfW Development Bank and a U.S.-based family office, the vehicle will deploy growth capital across Nigeria’s agricultural value chain, spanning production, processing, logistics and distribution.
Blended finance structure targets private capital
SCAF II succeeds the Fund for Agricultural Finance in Nigeria (FAFIN) and is structured as a blended finance vehicle. It includes a first-loss tranche designed to attract private investors by reducing downside risk.
The fund, co-founded by Mezuo Nwuneli and dual-domiciled in Mauritius and Nigeria, reflects Sahel Capital’s strategy of mobilizing global capital while maintaining a strong local presence.
Nigeria remains core market as fund expands regionally
The vehicle will deploy growth equity across the agribusiness value chain, including primary production, food processing, logistics and distribution. While Nigeria remains the core market, the fund will also invest in Ghana, Côte d’Ivoire and Senegal.
Target companies are expected to support food security, improve value-chain efficiency, enable import substitution and strengthen climate adaptation across the region.
Investors bet on food security and climate resilience
Managing Partner Mezuo Nwuneli said the first close highlights growing investor confidence in Sahel Capital’s execution and pipeline. He noted increasing urgency around food supply resilience as population growth, climate pressures and foreign exchange constraints strain domestic food systems.
KfW said its backing aligns with its focus on strengthening local supply chains and linking agribusinesses with smallholder farmers. The development bank has supported several Sahel-managed funds over the past decade.
As West African economies seek to reduce food imports and improve resilience, Sahel Capital is positioning SCAF II to back scalable agribusinesses capable of delivering commercial returns alongside long-term development impact.
