Africa’s agri-SME sector just received its first major institutional capital injection. The Financing for Agricultural SMEs in Africa (FASA), managed by Investisseurs & Partenaires, made its debut investment by committing $5 million to pan-African venture capital firm Catalyst Fund.
- Africa’s agri-SME sector just received its first major institutional capital injection.
- The Financing for Agricultural SMEs in Africa (FASA), managed by Investisseurs & Partenaires, made its debut investment by committing $5...
- Why Catalyst Fund won the first cheque The Catalyst Fund’s 61 portfolio companies have secured more than $800 million in follow-on...
- Closing Africa’s $100B agri-financing gap African agri-food SMEs support 95% of smallholder farmers, handle over 60% of all food production, and...
Keep reading for the full breakdown on Africa SMEs — everything you need to know is covered below.
FASA’s $5 million went to the Catalyst Fund, a pan-African VC firm backing early-stage entrepreneurs building tech-enabled enterprises to counter climate impacts like droughts, volatile weather, and food insecurity across the continent.
Why Catalyst Fund won the first cheque
The Catalyst Fund’s 61 portfolio companies have secured more than $800 million in follow-on funding and serve over 14 million underserved individuals and MSMEs globally. Its portfolio focuses on agrotech, water management, and climate-smart fintech, making it a natural match for FASA’s mandate.
Rather than investing directly in businesses, FASA deploys capital into vetted fund managers, creating a multiplier effect that channels investment into localized enterprises driving economic growth, environmental resilience, and rural job creation.
Closing Africa’s $100B agri-financing gap
African agri-food SMEs support 95% of smallholder farmers, handle over 60% of all food production, and create 70% of formal employment in food systems, yet face a financing gap estimated at $100 billion.
I&P co-CEO Jérémy Hajdenberg explained the fund-of-funds logic directly: “A Fund of funds is a highly impactful vehicle, not only to unlock capital but also to strengthen the ecosystem of Africa-based fund managers, providing them with the capital and support they need to scale. FASA will be providing catalytic capital which is exactly what the agri-SME finance sector requires.”
FASA was initiated by Norway and USAID with a goal of mobilizing $200 million in total commitments. I&P was competitively selected as fund manager, bringing over 20 years of experience supporting 25 African funds across 15 markets.
Norwegian Minister Anne Beathe Kristiansen Tvinnereim put the stakes plainly: “FASA will unlock hundreds of millions of dollars more in financing for agri-SMEs by reducing the risk of investing in agriculture. Ultimately, the fund could support 1,000 agri-SMEs, create and maintain over 70,000 jobs, and benefit over one million smallholder farmers over ten years.”