Samawati Capital Partners appointed as a sub-advisor to Sahel Capital for the USD 24m Social Enterprise Fund for Agriculture in Africa

Samawati Capital Partners is proud to partner with Sahel Capital as a sub-advisor to its new fund mandate, the Social Enterprise Fund for Agriculture in Africa (SEFAA).  

Sahel Capital will act as investment adviser to the $24 million fund sponsored by the German development bank, KfW. KfW has been a committed supporter of agricultural development on the African continent, and over the past eight years has anchored several other funds such as Africa Agriculture and Trade Investment Fund (AATIF), Fund for Agricultural Finance in Nigeria (FAFIN), and Lending for African Farming Company (LAFCo). Samawati is a sub-advisor to the investment advisor of AATIF supporting activities in the East and Southern African region and will now further support Sahel Capital on the SEFAA mandate, originating transactions within the same region.  

SEFAA is an impact fund with the goal of reducing poverty by investing in agricultural enterprises that contribute significantly to enhancing the business eco-system, or income opportunities, of smallholder farmers (SHFs) in sub-Saharan Africa.  

The fund will invest across the agricultural value chain with a particular focus on enterprises or intermediaries that increase productivity of smallholder farmers (SHFs), address market access limitations or information asymmetries or offer agricultural finance tailored to the specific needs and production cycles of SHFs. In addition to SEFAA’s targeted impact of reducing poverty through its investments, the fund is also expected to create and preserve jobs and deliver on six of the UN sustainable development goals (SDGs 1, 2, 3, 4, 5 and 6). 

SEFAA will invest primarily debt (but with flexibility to invest some equity or quasi-equity) with the aim of filling the financing gap for earlier-stage enterprises that may not yet be mature or profitable enough to get equity and/or debt from commercial capital providers.   

The SEFAA’s sub-advisor mandate fits well with Samawati Capital’s mission of directing capacity and capital to high growth SMEs in Africa to drive socio-economic transformation in the region. 

Closing of USD 4m senior secured CMA facility with Seba Foods Zambia

Samawati Capital supported in the closing of a USD 4m senior secured CMA facility for the purchase of maize and soybeans from local smallholder farmers in Zambia through the Africa Agriculture and Trade Investment Fund

Seba Foods is a family-run business founded in 1997 as a subsidiary of Two Six Zero Brands Africa. The company’s activities to date include purchasing, processing, packaging and shipping of maize and soya products for human consumption, with about 5% into animal feed products. Their key products include textured soy as a meat alternative, powdered/instant drinks, corn soya blend (porridge), as well as snacks, where the company is among the top market leaders in Zambia.

The USD 4m facility provided by AATIF will allow 260 Brands to now maximize the output of a recently installed plant. Structured as a 12-month CMA facility, it enables the company to purchase maize and soybeans in the local market during the most optimal time for further processing at its own facilities.