RWANDA – Incofin, an investment fund manager focused on emerging markets, has made its first three investments through the new Nutritious Foods Financing Facility (N3F), in the sub-Saharan nutritional sector.
Each selected company has received debt financing in the range of USD 0.5 million – USD 1 million to scale up their production, increasing their capacity to supply lower-income local households in Sub-Saharan Africa with nutritious food.
The announcement coincides with the Africa Food Systems Forum in Kigali, Rwanda, showcasing the role of innovative financing to transform food systems.
Its first investments were directed towards three SMEs, two from Kenya and one from Zambia. Shalem Investment Ltd, a Kenyan SME active in aggregating smallholder farmers’ produce and the fortified flours business, is the first beneficiary.
Shalem provides local communities with affordable, high-quality fortified maize and wheat flour, crucial for staple foods like Ugali and porridge.
The investor said fortified flours can play an important role in addressing malnutrition, as they provide an affordable source of micronutrients, especially in rural areas of low- and middle-income countries like Kenya, where access to diverse and nutritious foods may be limited, and for low-income populations.
Camino Ruiz is also Kenyan-based distributer of tilapia fish and partners with Global Tilapia and farmers’ groups for production.
Tilapia is a vital source of protein and essential nutrients, providing vitamins and minerals like B12 and selenium to low-income communities. Camino Ruiz also supports women’s groups in Homabay County, providing training and economic opportunities, particularly for women and youth.
The third one is Good Nature Agro, an innovative Zambian SME, specializing in legumes and seeds, Good Nature Agro partners with over 15,000 smallholder farmers, significantly impacting local food security.
N3F’s investment in the company will contribute to increased access to quality beans and groundnuts by smallholder farmers and households in Zambia as either seed for replanting or food for consumption in their homes.
“These initial investments exemplify N3F’s mission to close the SME financing gap in sub-Saharan Africa ,” said Myrtho Vlastou, Head of Debt for Africa at Incofin Investment Management.
“ We are incentivizing businesses that provide critical nutritional benefits to their communities. Our goal is to drive tangible and lasting change where it is needed most.”
N3F is an open-ended debt fund designed to invest in small and medium enterprises (SMEs) focused on improving nutrition in Sub-Saharan Africa. Its innovative blended structure combines public and private donor funds to attract capital from private investors.
In July, Incofin and the Global Alliance for Improved Nutrition (GAIN), in partnership with the U.S. Agency for International Development (USAID) and the Swiss Agency for Development and Cooperation (SDC) have teamed up to launch the Nutritious Foods Financing Facility Fund (N3F).
The Fund aims to boost the production and distribution of safe and nutritious foods across Sub-Saharan Africa, positively impacting the lives of millions.
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