Access to finance for smallholders and agri-SMEs remains a critical challenge globally, with millions of farmers struggling to increase yields and incomes sustainably and improve their and their children’s lives. AgriFI’s mission is to address this challenge head-on, driving inclusive and sustainable agricultural growth across frontier markets.

This annual report highlights our achievements in 2024, presenting an overview of all our investments, the impact we’ve made, challenges faced, and future goals. We invite you to explore how our approach and strategic partnerships are cultivating progress across frontier markets, creating economic opportunities, and building climate resilience in the agricultural sector.

From our strategic investments to our expansion into new country windows, 2024 has been a year of significant growth and impact for AgriFI and EDFI Management Company, and the main funder the European Union. Our EUR 120 million facility has continued to support investments that focus on smallholder inclusiveness and agri-businesses, addressing crucial gaps in agricultural financing.

As climate change intensifies, bringing more frequent droughts and floods, the agricultural sector faces unprecedented challenges. AgriFI’s investments, supporting climate-resilient farming practices, sustainable supply chains, and increased yields, directly impact some of the most vulnerable populations, helping to raise farmer incomes and improve food security.

With a leverage ratio of 3.05X, having mobilized an additional EUR 108.5 million in investments, AgriFI demonstrates its catalytic role in the sector. Our patient capital approach, focusing on medium to long-term financing, is creating lasting impact in vital agricultural value chains across the developing world.

AgriFI is funded by the EU and managed by EDFI Management Company. The initiative prioritizes investments that focus on smallholder inclusiveness, support increased yields, help raise farmer incomes, promote high environmental and social standards, and strengthen sustainable supply chains.

AgriFI contributes to Global Gateway, the EU’s investment strategy for partner countries, which aims to mobilise EUR 300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de-risk private sector investments.

Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world.

Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement.

Through a ‘Team Europe approach’, Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.

2024 confirmed our continued efforts in diversifying portfolio, spanning various segments of the agricultural value chain:

• Microfinance: Supporting smallholder farmers through AMZ - Agora Microfinance in Zambia to foster resilience to climate shocks and bridging the access to finance gap for smallholder farmers.

• Food Processing: Investing in EA FOODS LIMITED FO to increase its outreach to Zanzibar

• Banking: Partnering with NBS Bank in Malawi to improve financial access for agricultural businesses and smallholder associations.

• Rural Development: Supporting Sarvodaya in Sri Lanka to finance agro leasing.

• Organic Farming: Investing in Zanj Spices - 1001 Organic in Tanzania, promoting sustainable agricultural practices and reducing deforestation.

Patient Capital: Our diverse financial instruments offer the flexibility needed by companies operating in high-risk environments with unpredictable revenues. This concretely translates into a flexible approach towards collaterals and/or Sustainability-Linked Loans.

Patient Capital: Equity provides companies with long-term, patient capital without the burden of immediate debt repayments. This allows early-stage energy companies to focus on growth and innovation rather than short-term financial obligations.

Alignment of Interests: By taking equity stakes or providing subordinated debt, AgriFI aligns its interests with those of the existing shareholders, building stronger partnerships and shared long-term goals.

Strategic Support: Beyond capital, our investments often come with strategic guidance, industry expertise, technical assistance and valuable networks that can accelerate a company’s growth.

Leverage Factor: AgriFI has achieved an overall leverage ratio of 3.05X, meaning that for every euro invested, an additional EUR 2.05 of investment has been mobilized by other sources.

Risk Mitigation and Bankability: By providing early-stage, high-risk capital, AgriFI helps de-risk agricultural projects and companies, making them more attractive and “bankable” for EDFIs and other institutional investors. Through our support, companies are able to establish a performance history and credibility, lowering the perceived risk for subsequent investors and paving the way for larger-scale funding.

Market Development: Our investments contribute to building and accelerating sustainable agricultural markets across developing regions by fulfilling unmet funding needs and creating a pipeline of investable businesses for the broader development finance community.

Additionality: All investments are assessed through strict additionality criteria, ensuring that AgriFI’s capital enables projects that would otherwise struggle to secure funding or got delayed.

Cajou Espoir’s Beekeeping Initiative in Togo - Technical Assistance

Cajou Espoir is Togo’s leading processor and exporter of organic and Fairtrade-certified cashews, supporting over 1,500 smallholder farmers and creating 700 jobs. The company processes 10% of Togo’s annual cashew production, promoting organic farming practices and sustainability. In 2023, AgriFI invested EUR 3 million to enhance Cajou Espoir’s processing capacity, automate operations, and expand farmer outreach.

However, Cajou Espoir faced challenges related to lower cashew yields due to climate change and rising raw cashew nut prices. To address some of these issues, Cajou Espoir decided to instal beehives to increase the yields of the cashew nut trees in the most sustainable way. EDFI Management Company partnered with COLEAD to provide technical assistance focused on apiculture (beekeeping) capacity building of the company.

Key Achievements:

• Climate-Smart Practices: EA Foods trains farmers on climate-resilient agricultural techniques such as crop rotation, intercropping, and the use of drought-resistant seeds.

• Reduced Post-Harvest Losses: The company’s efficient logistics system has reduced post-harvest losses from 40% to just 5%, ensuring more food reaches consumers.

• Market Access: By eliminating intermediaries, EA Foods provides better prices for farmers while improving food security in urban areas.

• Catalytic Investment: AgriFI’s EUR 1.86 million investment in 2024 enabled EA Foods to expand operations, acquire additional trucks and machinery, and directly source from more farmers across Tanzania.

• The company has a current network of 2,600 farmers which ensure more than 2,600 ha of food production..

• Over the upcoming 5 to 7 years, more than 21,000 smallholder farmers will benefit from increased incomes and customised training on best practices for cultivation and harvest

• EA Foods is expected to enhance the sustainable, production of food and impact additional 22000 ha of land which will be cultivated and managed in line with best environmental and social practices

AgriFI plays a critical role in fostering climate-resilient agriculture by

• Investing in Climate-Smart Solutions: Supporting companies like EA Foods and Cajou Espoir that implement innovative practices to adapt to climate change.

• Providing Technical Assistance: Offering expertise to help companies adopt sustainable practices such as apiculture or reduce post-harvest losses.

• Catalysing Additional Funding: By Leveraging its investments to attract co-financing from other development finance institutions (including BIO) and private investors.

AgriFi investment in 2024 in EA Foods was in local currency which reduces exchange rate risk, aligns debt with local revenues, makes repayment more predictable and builds resilience. By supporting initiatives that combine technological innovation with sustainable practices, AgriFI is helping farmers adapt to a changing climate while enhancing food security and rural livelihoods. These investments demonstrate how targeted support can transform challenges into opportunities for growth and resilience in agriculture.

AMZ - Agora Microfinance Zambia

Agora Microfinance Zambia (AMZ) is a prime example of how microfinance can transform rural agriculture. Operating across Zambia’s 10 provinces, AMZ serves over 150,000 clients, primarily smallholder farmers and small traders in underserved areas.

Sarvodaya Development Finance (SDF), Sri Lanka

Sarvodaya Development Finance PLC (SDF) illustrates the transformative role of local financial intermediaries in agricultural finance. As the economic arm of the Sarvodaya Movement in Sri Lanka, SDF focuses on financial inclusion including rural communities.

SDF’s support has helped farmers increase yields, reduce post-harvest losses, and improve their incomes. AgriFI is the first international investor supporting the company, which is expected to attract other investors. The transaction was closed over an exceptional period of political and economic turmoil.

By working closely with MFIs and local banks, AgriFI helps address systemic challenges in agricultural finance. These partnerships enable smallholder farmers to access the tools they need to build resilience against climate shocks, increase productivity, and contribute to food security across developing regions.

Through investments like these, AgriFI demonstrates how microfinance can be a powerful catalyst for agricultural transformation—bridging financing gaps while fostering inclusive growth in rural communities worldwide.