(Ecofin Agency) - Sahel Capital, an investment firm focusing on food and agriculture in sub-Saharan Africa, announced its first operation of the current year and the fourth since its establishment in 2021. The Sefaa fund, managed by Sahel Capital, provided a loan facility to Tanzanian agri-food company, Rogathe Dairy Farm Products.

On July 15, Sahel Capital revealed that it granted Rogathe Dairy Farm Products a 3-year loan facility and a working capital line. The transaction was carried out through Sefaa (Social Enterprise Fund for Agriculture in Africa), one of the two funds managed by Sahel Capital. However, the specific loan amount was not disclosed.

Rogathe, known for producing pasteurized milk and yogurt, plans to utilize the funds to strengthen its milk supply chain, acquire refrigerated trucks, and finance milk purchases from small-scale farmers.

This financing marks Rogathe's entry into Sefaa's portfolio of supported enterprises. The dairy company becomes the fourth beneficiary of this structured debt fund, launched two years ago, with the primary investor being KfW Development Bank. Sefaa invests between $300,000 and $2.4 million in agri-food SMEs across 13 sub-Saharan countries. In 2023, it made its initial three investments in the agricultural sector in Ghana, and in food product distribution in Nigeria and Tanzania.

Before Sefaa, Sahel Capital raised its first Fafin fund (Fund for Agricultural Finance in Nigeria) in 2014. This vehicle, which completed its final closing in 2017, has already made eight investments in agri-food SMEs in Nigeria.

Chamberline Moko