Agricultural growth has proven to be effective in reducing poverty in low- and medium-income countries. However, farming in developing countries is often characterised by low productivity. In Africa, the agricultural sector is underperforming, but has significant future potential. 

Investments are needed throughout the value chain. Attracting investors and accessing credit are two key constraints faced by farmers and agribusinesses in Africa. Formal banks are often reluctant to offer loans, and the high-risk nature of the sector limits investor interest. Development Finance Institutions willing to take high risks are therefore strongly needed in this sector.


Norfund strategy

Norfund plans to build a substantial portfolio in Africa’s food and agribusiness sector, including investments in aquaculture. The majority of our target companies are medium-sized enterprises in need of growth capital. We invest across the value chain; in inputs, farming, storage/transportation, processing and distribution/retail.  

Our typical investment horizon is 5-10 years.

As minority investors, we seek partnerships with an industrial partner or with a management which has invested in the company. We can provide equity and/or debt and we are flexible with respect to investment currency. Normally our investments are in the range USD 5-15 million. Our typical investment horizon is 5-10 years.


Team with experience

To maximise financial and developmental success in the investee companies, Norfund strives to be a value adding owner beyond the mere capital investment. Therefore, our investment team has extensive experience in project development, environmental, social and governance aspects, and always works closely with the investment partners, also on the board level, to further develop the companies.

We work with partners, agricultural funds, and NGOs that have interests aligned with those of Norfund. 


Geographical priorities

Food and Agribusiness investments will be done in Africa only. Main focus on Southern Africa (excl. South Africa), Eastern Africa and Ghana in West Africa.


Example investees

Sunripe/Serengeti Fresh in Kenya/Tanzania (horticulture)
Africado in Tanzania (avocados)
Full investment overview