NSIA makes $10m commitment to FAFIN

NSIA makes a US$10M commitment to the SME focused fund for agriculture (“FAFIN”)

The Nigeria Sovereign Investment Authority (“NSIA”) through its Nigeria Infrastructure Fund is pleased to announce a US$10 million total commitment to the Fund for Agricultural Financing in Nigeria (FAFIN or The Fund) as one of 3 collaborating sponsors, alongside the Nigerian Federal Ministry of Agriculture and Rural Development (“FMARD”) and KfW, the German government-owned development bank.

The Fund is an innovative initiative, designed to transform the agriculture finance landscape in Nigeria. With a US$100 million target, FAFIN will provide tailored equity and debt capital and technical support solutions to commercially-viable small and medium-sized enterprises (SMEs) and intermediaries across Nigeria’s agricultural value chain. The Fund will be dedicated to catalyzing an agriculture-led inclusive economic growth in Nigeria through enhanced agricultural productivity, value-added processing and market linkages. The $100 million target will be reached through further contributions from private sector investors.

The participation of the NSIA in this initiative is a firm demonstration of its agriculture strategy as one core area of focus alongside power, housing, healthcare, motorways etc. Through this strategic act, the NSIA hopes to support the realization of the Federal Government of Nigeria’s Agriculture Transformation Agenda and facilitate Nigeria’s food security.

Uche Orji, Chief Executive Officer of NSIA commented “Agriculture is a sector of strategic importance to the NSIA and an area we see opportunities for significant growth and profit through the facilitation of the enhancement of Nigeria’s critical agriculture infrastructure.”

Sahel Capital, an indigenous agriculture-focused investment and advisory firm, was selected by the Fund Sponsors to be the Fund Manager for FAFIN.

 

Source: NSIA

January 30, 2014
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