September 2024
Incofin Investment Management announces the first three investments made through the new Nutritious Foods Financing Facility (N3F), launched earlier this year. Each selected company has received debt financing in the range of USD 0.5 million – USD 1 million to scale up their production, increasing their capacity to supply lower-income local households in Sub-Saharan Africa with nutritious food. Further, they will each be supported with tailored technical assistance managed by the Global Alliance for Improved Nutrition (GAIN).
The announcement coincides with the Africa Food Systems Forum in Kigali, Rwanda, showcasing the role of innovative financing to transform food systems.
Selected Investments: Local Enterprises
Shalem Investment Ltd, a Kenyan SME active in aggregating smallholder farmers’ produce and the fortified flours business, is the first beneficiary. Shalem provides local communities with affordable, high-quality fortified maize and wheat flour, crucial for staple foods like Ugali and porridge. Fortified flours can play an important role in addressing malnutrition, as they provide an affordable source of micronutrients, especially in rural areas of low- and middle-income countries like Kenya, where access to diverse and nutritious foods may be limited, and for low-income populations.
Good Nature Agro, an innovative Zambian SME, is the second recipient. Specializing in legumes and seeds, Good Nature Agro partners with over 15,000 smallholder farmers, significantly impacting local food security. Good Nature Agro has been recently ranked among the fastest growing companies in Africa by the Financial Times, demonstrating its capacity to scale its impact in Zambia and beyond. N3F’s investment in the company will contribute to increased access to quality beans and groundnuts by smallholder farmers and households in Zambia as either seed for replanting or food for consumption in their homes.
Camino Ruiz: Based in Kenya, Camino Ruiz distributes tilapia fish and partners with Global Tilapia and farmers’ groups for production. Tilapia is a vital source of protein and essential nutrients, providing vitamins and minerals like B12 and selenium to low-income communities. Camino Ruiz also supports women’s groups in Homabay County, providing training and economic opportunities, particularly for women and youth.
Quotes
Myrtho Vlastou, Debt Director of Africa at Incofin Investment Management, remarked, “These initial investments exemplify N3F’s mission to bridge the funding gap for SMEs in Sub-Saharan Africa. By supporting Shalem Investment Ltd and Good Nature Agro, we are fostering businesses that deliver critical nutritional benefits to their communities. Our focus remains on driving tangible, sustainable change where it is needed most.“
Roberta Bove, Senior Lead Innovative Finance at GAIN, stated, “We are incredibly pleased to announce the first investments of N3F, sampling the breadth of opportunities for investing in nutrition in Sub-Saharan Africa. We believe in the impact potential of these business models operating at different stages of nutritious foods value chains, and look forward to further invest across stages of various value chains through a food system approach.“
Prospects
The Africa Food Systems Forum, taking place from 2nd to 6th September 2024, serves as an ideal backdrop for this announcement. It calls to address nutrition and food security crises in Africa. N3F aims to yield not only financial returns but also substantial social impact.
As N3F continues to grow, Incofin and GAIN will continue collaborating with stakeholders to mobilize resources and scale their efforts across the continent.
About Incofin
Incofin is a leading impact investor committed to financial inclusion, the agri-food value chain, and access to safe drinking water. Driven by a mission to promote inclusive progress and sustainable transitions, Incofin actively invests in emerging and developing markets to uplift vulnerable and underserved communities. Incofin manages over USD 1.4 billion in assets, with a dedicated team of more than 90 professionals. Its investor base comprises development banks, institutional investors, family offices and private individuals.
About GAIN
The Global Alliance for Improved Nutrition is a Swiss-based foundation dedicated to tackling malnutrition worldwide. With a focus on increasing consumer demand, accessibility, and market incentives for nutritious foods, GAIN is at the forefront of the fight against malnutrition.
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