African investment firm Injaro Investments has closed its inaugural fund on $49m.
Injaro Agricultural Capital Holdings received commitments of $15m, $10m and $7m from European development finance institutions CDC, FMO and Proparco, respectively.
It said that agriculture is a key sector for the development of West Africa as it represents 30 per cent of the region’s GDP, 65 per cent of its jobs, 70 per cent of internal trade and 68 per cent of the industrial transformation.
Injaro said, “Nevertheless the sector suffers from a lack of financing (especially equity financing), low yields, an insufficient access to land and a weak business regulatory framework. Injaro is one of a very small number of private equity funds focusing on the sector.
“This investment in Injaro represents a much needed commitment to West Africa’s agricultural sector and especially for small agribusinesses operating in the region which generally tend to be avoided by traditional investors.”
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