• Sahel Capital provides $1.5 million loan to Rasad Nigeria

• Funding supports cocoa, cashew supply chains and farmer incomes

• Deal targets SME financing gaps in Nigeria’s agriculture sector

Sahel Capital, a private equity firm specializing in sub-Saharan African agriculture, has closed a $1.5 million working capital loan for Rasad Nigeria Limited. Rasad is an agribusiness company that buys and consolidates cocoa and cashew nuts for local and international markets.

The financing was made through the Social Enterprise Fund for Agriculture in Africa (SEFAA). Sahel Capital launched the fund five years ago to provide structured financing to agricultural small and medium-sized enterprises across 13 sub-Saharan countries. The loan is intended to support Nigeria’s cocoa and cashew supply chains and help Rasad expand its operations.

Based in Ogun State, Rasad Nigeria works with more than 1,000 smallholder farmers and produce collectors. With this new loan, the company plans to increase its purchases from farmers, pay better prices during harvest seasons, and ensure more reliable supplies for its clients. The aim is to stabilize farmer incomes while strengthening the overall supply chain.

Expansion and Rasad 2.0

Rasad Nigeria also plans to develop more value-added activities under its Rasad 2.0 program. This initiative includes projects focused on processing, trading, and exporting agricultural products. In addition, the company is preparing to set up Axias Global, an entity dedicated to exports, processing, and circular economy initiatives.

The operation builds on an existing partnership between the two organizations, as SEFAA has supported the company in the past. “This increased facility reflects our confidence in the company’s execution capacity and its role in supporting inclusive growth in Nigeria’s agricultural value chains,” said Deji Adebusoye, a partner at Sahel Capital.

The investment comes at a time when Nigeria’s agricultural sector continues to face a chronic funding shortfall. According to a 2022 study by agribusiness consultancy Agri-Logic, the sector’s financing gap is estimated at nearly $183 billion. Targeted funding for agricultural SMEs is widely seen as a key tool for strengthening the sector’s resilience and supporting the country’s broader economy.

Sandrine Gaingne