Agriculture
British International Investment drives new investment to expand Nigeria’s agricultural sector
British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, today announced it has signed legally binding documents to invest US$15m in equity into a Singapore-headquartered agricultural commodities trading house, Valency International (Valency), to fund their expansion of processing and warehouse infrastructure in Nigeria. The transaction is subject to regulatory approval and is expected to close in early 2024.
In addition to its commitment of $15m, BII has an option to invest a further $35m in equity into Valency within two years of completion of its initial investment. Agriculture is a key contributor to Nigeria’s economy, accounting for a quarter of total gross domestic product, and employs more than one in three Nigerians. Crop production is the largest segment within agriculture and it accounts for about 87.6 per cent of the sector’s total output. However, food processing and manufacturing remains underdeveloped in the local agricultural sector.
The new Valency facilities, funded by BII will strengthen partnerships with local farmers and processing centres to maximise their output and provide a more stable supply of premium-quality products. The projects are expected to reach at least an extra 60,000 farmers and create up to 2,800 jobs among low-income communities in Nigeria.
British International Investment, as the first institutional investor in Valency, will provide value-added support to the company in developing best practices in business integrity and Environmental and Social Management System (ESMS). Both parties will work closely to improve job quality and gender inclusion and enhance value creation.
Jonny Baxter, UK Deputy High Commissioner said: “The UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate, but strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation.
“I am excited to welcome this new UK investment to help enhance Nigeria’s food processing capabilities, which will create jobs across the nation. We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”
Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII said: “The strategic opportunity to catalyse growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential. We are proud to deepen our commitment to food security and smallholder farmers in Nigeria while creating jobs that enable industrialisation and facilitate regional and international trade.
“We are delighted to partner with Valency, and we look forward to the significant impact and economic development that our catalytic capital will support.”
Speaking on the signing, Mr. Sumit Jain, CEO of Valency International commented: “We have been careful and deliberate in our choice of partners for the next phase of our growth. While we have been approached by a variety of investor groups, we chose to partner with BII as we have been impressed by BII’s engagement to the regions where we have committed to invest substantially over the medium term. Equally we are privileged that BII has chosen Valency to drive its impact agenda in Nigeria in the growing food and agriculture sector.”
Roman Frenkel, Head of Food and Agriculture at BII will join the Board of Valency as part of the transaction. BII’s commitment contributes to UN Sustainable Development Goal 8 on Decent work and economic growth.
African Risk Capacity Limited and the International Finance Corporation have signed a Letter of Engagement today to strengthen agricultural insurance solutions in Africa. This partnership aims to create a safer and more attractive environment for investment in agriculture by reducing risks linked to climate change and other uncertainties. The signing took place at the Marriott Hotel Melrose Arch in Johannesburg, South Africa, with Lesley Ndlovu, CEO of ARC Ltd., and Sérgio Pimenta, IFC Vice President for Africa, along with their teams.
Agriculture is the backbone of Africa’s economy, providing livelihoods for millions. Yet, farmers and agribusinesses struggle to secure funding due to the high risks posed by unpredictable weather, market fluctuations, and limited financial protections. Africa has approximately 183 million hectares of cultivated land, with 95% of it dependent on rainfall, making the sector highly vulnerable to climate variability. The World Bank estimates that food demand will increase by 70% by 2050, requiring massive investments in agriculture. However, in Africa, less than 5% of farmland is irrigated, and access to financing remains a major barrier to growth. Without effective risk management solutions, many investors hesitate to support agricultural projects, leaving farmers exposed and food production unstable.
Through this new partnership, ARC Ltd. and IFC will develop insurance solutions that help farmers, financial institutions, and agribusinesses manage these risks. The initiative will support the IFC Africa Inclusive Insurance Program (AIIP) by introducing insurance products that protect farmers from climate shocks and other uncertainties. This will not only reduce financial losses but also encourage more investment in agriculture, leading to increased food production and improved food security across the continent.
The collaboration will focus on several key areas, including identifying priority regions for agricultural insurance, developing tailored insurance products, and working with governments, financial institutions, and AgTech providers to expand access to risk protection. By ensuring that farmers and businesses can recover quickly from losses, this initiative will create a more stable and productive agricultural sector.
“This partnership is an important step in our mission to strengthen Africa’s resilience to climate and financial risks,” said Lesley Ndlovu, CEO of ARC Ltd. “By working with IFC, we can scale up agricultural insurance solutions and provide farmers with the confidence to invest in their future.”
Sérgio Pimenta, IFC Vice President for Africa, highlighted the impact of the initiative: “Agriculture is central to Africa’s economy and food security. Supporting food security and nutrition of the continent is an important priority for IFC in Africa which reflects our commitment to fostering economic development and resilience in the region. With this collaboration, we are creating insurance solutions that will protect farmers and attract the investments needed to drive sustainable growth in agriculture.”
At a time when climate change and global food demand are putting increased pressure on African agriculture, this partnership marks a significant step toward ensuring food security and economic stability. By reducing risks and increasing access to financial protection, ARC Ltd. and IFC are working to build a stronger, more resilient future for African farmers and investors alike.
Halcyon is proud to announce its collaboration with Amazon Web Services, Inc. (AWS) highlighting their shared commitment to combat food insecurity and accelerate transformative change in Africa through innovation in agricultural technology. This collaboration has already identified 10 visionary African startup founders who are developing impactful solutions to the region’s most pressing challenges in food insecurity. The Climate Resilience and Food Security in Africa Fellowship program will kick off with a one-week in-person residency in Nairobi, Kenya. Following this, participants will engage in several months of virtual programming. The program will culminate with a second residency, which will involve another immersive, in-person experience for this cohort.
The Fellowship focuses on tech solutions targeting climate resilience and food security across Africa, including but not limited to climate-smart agriculture and food systems, water technology, blue economy (the sustainable use of ocean resources), renewable energy, green building, and climate data. The founders will receive training on investment readiness, product-market fit, and leadership, as well as access to technical support and credits from AWS. They will also be connected to a network of climate-focused early-stage investors and mentors for further support.
By focusing on AgTech ventures, Halcyon and AWS are enabling a new wave of African startups committed to improving nutrition, increasing agricultural yields, creating innovative agricultural finance solutions, deploying smart climate adaptation strategies, and expanding the trade and delivery of food to vulnerable populations.
“Through AWS’s cloud technology, Halcyon is empowering entrepreneurs to turn their bold ideas into impactful solutions that will drive lasting change across Africa,” said Carolyn Vigil, Social Responsibility Impact Leader at AWS. “I’m especially excited about this collaboration because it focuses on Africa’s unique challenges and opportunities. Together, we’re nurturing the next generation of innovators who are tackling the intersection of agriculture, health, and resilience, paving the way for a more sustainable future for vulnerable communities across the continent.”
L-R Ann Elise Francis, Mercy Erhiawarien – Senior Manager Halcyon – Kim Johson Roberts – Executive Vice President, Halcyon
Halcyon aims to expand its successful programs, identifying even more talented founders throughout the continent who are committed to driving sustainable change. These startups will benefit from Halcyon’s robust support infrastructure, including mentorship, access to AWS’s world-class cloud services, and connections to a global network of investors, industry leaders, and policymakers.
“We deeply value AWS’ support in working with us to strategically strengthen organizational capacity and scale impactful AgTech businesses across Africa,” said Mercy Erhiawarien, Senior Manager of Intensives at Halcyon. “Halcyon has been supporting founders on the continent for nearly a decade. Africa faces pressing issues such as food insecurity, climate change, and health disparities. These challenges require resilient and innovative solutions, which is where local founders play a crucial role. Halcyon has consistently worked alongside these entrepreneurs, providing them with the support they need to scale their businesses and create long-lasting change. This collaboration is vital for empowering local founders who are developing solutions that tackle food insecurity, promote resilience, and advance health equity. Together, we’re building a future of innovation that will transform Africa’s agricultural landscape for generations to come.”
With funding from AWS, Halcyon’s 2025 program will identify and scale the most promising AgTech ventures across Africa. These businesses will play a critical role in building food security, improving health outcomes, and enabling resilience across the continent. Halcyon remains committed to its mission of accelerating transformative change in Africa and is excited to continue working with AWS to bring these solutions to life.
natnudO Foods, a division of Amo Farm Sieberer Hatchery Limited, has officially launched the natnuPreneur Seller Scheme Hub & Spoke Model in Edo State.
This initiative, introduced in partnership with the Office of the Edo State First Lady and Heifer International, aims to empower agripreneurs and smallholder farmers while improving access to affordable animal protein.
The scheme features a Hub and Spoke distribution model designed to enhance local food supply chains. Each Hub is equipped with solar-powered freezers for product storage and distribution, while attached Spokes comprising small vendors are provided with push carts and parasols for daily sales. This model not only strengthens small businesses but also enhances local animal protein availability in Edo State.
The unveiling ceremony took place at the natnudO Foods Processing Plant along Presco Road in the Obayanto community, Ikpoba Okha Local Government Area, in Benin City, Edo State, on Thursday, 30th January 2025.
During the event, the Coordinator of the Office of the First Lady, Mrs. Edesili Okpebholo Anani, handed over the empowerment equipment including solar-powered freezers and insulated carts to the first batch of beneficiaries, mostly women.
She encouraged them to maximize this opportunity to boost animal protein supply, improve earnings, and enhance their overall standard of living.
Mrs. Anani also commended the collaboration between natnudO Foods, the Edo State Government, and Heifer International, emphasizing the collective vision to empower women and young entrepreneurs.
“Let us build an ecosystem that fosters innovation, entrepreneurship, and economic growth. Together, we can create a brighter future for our people,” she stated.
Speaking at the event, Alaba Yunusa, Deputy Head of Business for natnudO Foods, who represented Dr. Oduntan, expressed enthusiasm about the partnership.
He reiterated that the natnuPreneur programme is committed to increasing local production, creating economic opportunities, and ensuring quality protein is accessible to all Nigerians.
He highlighted that natnudO’s abattoir in Edo State can process 10,000 birds daily while also leveraging innovative technology to support smallholder farmers.
As part of its ongoing expansion, natnudO Foods commissioned a new processing plant in Benin City in November 2024. This facility joins other natnudO plants in Akinyele (Oyo State), Uyo (Akwa Ibom State), and Kaduna State, reinforcing the company’s commitment to boosting food security and making quality animal protein affordable for all Nigerians.
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