Swedfund, Sweden’s development financier, has committed to supporting Apollo Agriculture, an agri-fintech company based in Kenya, with a substantial loan of USD 5 million. This investment marks a significant step in promoting sustainable agriculture, enhancing food security, and fostering technological advancements in small-scale farming.
Apollo Agriculture, led by CEO Eli Pollak, specializes in delivering agricultural products such as seeds and fertilizer to small-scale farmers. The investment from Swedfund, accompanied by another USD 5 million contribution from ImpactConnect, a Team Europe partner, brings the total investment to USD 10 million. Swedfund’s CEO, Maria Håkansson, stated, “The food sector will be a growing sector for us in the future,” emphasizing the importance of this collaboration within the Global Gateway strategy.
The loan from Swedfund is provided with a 50% guarantee from the European Union under the EFSD+ framework. This marks the first instance of Swedfund utilizing an EU guarantee within the Global Gateway strategy, aligning with the Climate and Energy investment priority.
Apollo Agriculture’s primary focus is on maize cultivation, a staple food in Kenya, and the most common crop for small-scale farmers. With a network of around 7,000 sales agents and over 350,000 farmers as customers, Apollo aims to transform small-scale agriculture through a comprehensive approach encompassing distribution, advice, insurance, and financing.
Kenya faces significant challenges due to climate change, making it vulnerable to unpredictable weather patterns. To address this, Apollo Agriculture incorporates climate-smart measures such as drought-tolerant seeds, blended fertilizer, insurance, agronomic education, and certifications. These measures play a vital role in promoting resilience and sustainability among small-scale farmers, contributing to food security and climate change mitigation.
Eli Pollak, CEO of Apollo Agriculture, expressed gratitude for the partnership with Swedfund, highlighting that this loan is a crucial step towards realizing their vision of transforming small-scale agriculture. The funds will enable Apollo to expand its reach and make a more significant impact on farmers’ lives.
The collaboration between Swedfund, ImpactConnect, and Apollo Agriculture not only emphasizes responsible investments and sustainable development but also aligns with the EU’s Global Gateway strategy. This strategy aims to mobilize €300 billion in investments between 2021 and 2027 to reduce risks for private sector investments in partner countries.
Swedfund’s investment in Apollo Agriculture is poised to create more employment opportunities, improve agricultural production, and drive the adoption of new technology in small-scale farming. As both entities work together to enhance food security and access to financing for farmers in Kenya, the partnership stands as a beacon for innovative solutions in the field of agri-fintech, contributing to a more sustainable and prosperous future for the agricultural sector in the region.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.