Norfund is making a significant investment in the AFGRI Group, a prominent agricultural services company based in South Africa, by providing strategic funding amounting to ZAR 600 million (approximately $33 million). This funding is aimed at supporting AFGRI in various critical areas, including financing capital expenditures, enhancing working capital, and facilitating farmer financing.

AFGRI plays a vital role in the agricultural landscape of South Africa, supporting around one-third of the country’s farmers through a comprehensive suite of services. These services encompass grain management, agricultural machinery, retail operations, food processing, animal feed production, milling, farmer financing, and insurance. The breadth of AFGRI’s offerings positions it as a key player in ensuring the efficiency and productivity of the agricultural sector.

In 2024 alone, AFGRI’s initiatives have had a substantial impact, directly and indirectly benefiting nearly 60,000 individuals. The company has also provided assistance to 121 schools and created close to 500 new jobs, contributing to a total workforce of approximately 4,000 employees. This demonstrates AFGRI’s commitment to not only supporting farmers but also fostering community development and economic growth.

Simen Berger Øby, Senior Vice President at Norfund, emphasized the importance of agriculture in South Africa’s economy, stating, “Agriculture is the backbone of GDP growth, exports, and food security in South Africa. A well-functioning sector is essential for a thriving economy, and this company plays an important role in ensuring its strength and long-term sustainability.”

AFGRI has a long history of operations across the African continent and is now poised to expand its reach into selected African markets beyond South Africa. The company is adapting its strategy to address climate challenges, thereby reinforcing its commitment to long-term sustainability in an increasingly volatile agricultural environment.

Norman Celliers, CEO of AFGRI, expressed the company’s dedication to supporting farmers, stating, “We are committed to ensuring farmers have the resources they need to thrive. With this strategic funding, we can expand our support, drive innovation, and secure the country’s food supply for the future.” This investment from Norfund not only enhances AFGRI’s operational capabilities but also strengthens the agricultural sector’s resilience in South Africa and beyond.

Source - https://innovation-village.com