Sahel Capital Provides Financing to S&P Agribusiness for Hibiscus Flower Supply Chain Expansion
Sahel Capital, an impact-oriented private equity firm, has extended a loan facility to S&P Agribusiness, a trading company specializing in sourcing and distributing agricultural commodities from Africa, particularly Nigeria and Tanzania, to global customers. S&P Agribusiness has established supply chain links with over 80 smallholder farmers in Northern Nigeria, specifically in Jigawa and Kano states.
The loan will enable S&P Agribusiness to expand its hibiscus flower supply chain and finance the aggregation of hibiscus flowers from smallholder farmers. Sahel Capital, through its technical assistance facility, will support S&P Agribusiness in organizing farmers into cooperatives to enhance productivity and provide access to agricultural inputs. This support is expected to significantly improve the income and livelihoods of hibiscus farmers and their families.
Deji Adebusoye, a Principal at Sahel Capital, highlighted the dual advantage that companies like S&P Agribusiness provide to their host countries. They generate export earnings while also building the capacity of smallholder farmers with whom they partner. The loan and support from Sahel Capital aim to further strengthen the hibiscus value chain, creating export opportunities and prosperity for smallholder farmers in the region.
Lanre Awojoodu, Founder & Managing Director of S&P Agribusiness, expressed gratitude for Sahel Capital’s support and trust in their vision. This investment will help S&P Agribusiness secure the market for hibiscus flowers sourced from various smallholder farmer communities and expand its operations into other African countries.
Sahel Capital manages two funds, the Fund for Agricultural Finance in Nigeria (FAFIN) and the Social Enterprise Fund for Agriculture in Africa (SEFAA). FAFIN focuses on investments in SME agribusinesses in Nigeria, while SEFAA primarily provides structured debt to agribusiness SMEs across 13 countries in sub-Saharan Africa. Sahel Capital is also raising capital for its successor fund, Sahel Capital Agribusiness Fund II, which will target investment opportunities across West Africa.