(Ecofin Agency) - Sahel Capital on Wednesday announced the closure of a $66million debut funding process aimed at driving agricultural growth in Nigeria. Sahel is the manager of the Fund for Agricultural Finance in Nigeria (FAFIN).

According to the company, the funding process saw the African Development Bank (AfDB), CDC Group and the Dutch Good Growth Fund, collectively committing $31million to FAFIN.

With this additional capital, it plans to invest in 9-10 additional firms that would establish over 4,000 direct and indirect jobs. A move which would improve the lives of more than 36,000 farmers across Nigeria.

KfW Development Bank has also offered to raise its commitments to FAFIN by another $10million. This is would increase the fund size to $76million by December 2017.

Speaking on the fundraising, Minister of Finance, Kemi Adeosun, said: “We are focused on acting as a catalyst for private sector capital to drive growth in the agribusiness sector. With this close, we would have succeeded in partnering with various investors to secure $76million for agribusiness in Nigeria.”

FAFIN is a private equity fund which provides financial, capacity building and technical assistance to selected SMEs in the Nigerian agribusiness sector. Through investments in the diary, edible oils, poultry and cassava value chains in Nigeria, FAFIN has created over 500 new jobs and improved the lives of over 1,000 small famers by supporting innovative business incentives and out-grower schemes.

Anita Fatunji