Sahel Capital's SEFAA Fund

Overview

Sahel Capital's SEFAA Fund is an impact-first private equity fund focused on improving the business ecosystem for smallholder farmers in Sub-Saharan Africa. The fund's theory of change posits that significant poverty alleviation can be achieved by enhancing the productivity of smallholder farmers through growth funding to viable Social Agricultural Enterprises (SAEs) that provide products and services to smallholder farmers or rural micro, small, and medium-sized enterprises (MSMEs). Launched in 2021 with an initial capital of $24 million, SEFAA provides flexible financing—primarily debt, with options for equity and quasi-equity investments—to early-stage and growth-oriented agribusinesses across 13 countries in Sub-Saharan Africa. The fund targets enterprises that increase the productivity, market access, and livelihoods of smallholder farmers, emphasizing social impact and gender inclusion. Investment sizes range from $300,000 to $2.4 million. In addition to capital, SEFAA offers a robust Technical Assistance Facility to strengthen operational capacity and ensure the long-term sustainability of its portfolio companies. This facility supports areas such as management capacity building, product certification, market research, environmental, social, and governance (ESG) initiatives, and the development of smallholder farmer out-grower networks. Through these efforts, SEFAA aims to generate sustainable positive impacts for smallholder farmers, including higher incomes and job creation, while contributing to the achievement of several United Nations Sustainable Development Goals (SDGs).

Investment Focus

• Enterprises that increase productivity of smallholder farmers or other SAEs
• Enterprises that address market access limitations and information asymmetries for smallholder farmers or other SAEs
• Enterprises that offer agricultural finance adjusted to the specific needs and production cycles of smallholder farmers or other SAEs