Private Capital’s role in achieving COP 2030 Breakthroughs in Africa (LAND)

Afri-Spective by AVCA
4 min readFeb 21, 2024
Africa Climate Goals

COP 2030 Breakthroughs pinpoint specific tipping points that must be achieved by 2030 to keep on track with the Pathways’ vision.

This edition explores contributions from AVCA Members in achieving these breakthroughs in LAND, with other edition in this series contributions:

LAND: Land Use, Agriculture & Food​

2030 TARGET: More than 10Gt CO2e mitigated per year through nature-based solutions by 2030, including the protection (45MHa), sustainable management (2BHa) and restoration (350Mha) of land and demand side food system action.

2023: Pearl Capital Partners Launches UGX23.9 billion Dairy-Horticulture Credit Fund to Boost Smallholder Farmers in Uganda.

  • With support from The Embassy of the Kingdom of the Netherlands (EKN). The Agro-SACCO-focused credit facility fund will support smallholder farmers in the dairy and horticulture value chains through various access to finance initiatives.
  • The objective of the Fund is to provide affordable and accessible capital to SACCOs and cooperatives that work with and support smallholder farmers in the dairy and horticulture value chains, with a focus on promoting inclusive and sustainable development in the dairy and horticulture sectors, and a range of loan products that cater to different requirements such as animal feeds, quality agro-inputs, quality breeding, water harvesting systems, pre and post harvesting systems among others.

“Dairy and Horticulture credit fund presents an opportunity for small-scale farmers to improve production and productivity for economic growth in the two sub-sectors. Uganda has a favourable climate with evenly distributed rainfall and a moderate climate that allows dairy, tropical fruits, and vegetables to flourish.” stated Edward Isingoma Matsiko, Managing Partner, PCP.

2023: Mediterrania Capital Partners and BIC Capital join forces to acquire a majority stake in Técnicas Sanjorge, a leader in the agribusiness sector

  • The investment will enable TSJ to accelerate its development, as well as its international expansion, an area in which Mediterrania has extensive experience and where it can provide high added value through its network of offices in Africa, a continent where the agricultural sector is experiencing strong growth. The objective is to offer the industry solutions with which to develop smarter and more sustainable agricultural practices in a sector where basic resources such as water and human capital are becoming increasingly scarce.

“TSJ has developed a unique cross-cutting business model that is key to the future development of sustainable agriculture and the food industry. This new investment also consolidates Mediterrania Capital’s firm commitment to impact investments and to those companies that transform current business models for the sake of greater sustainability and efficiency to address the current major challenges related to the environment, to which Mediterrania Capital is strongly committed,” according to Daniel Viñas, Partner, Mediterrania Capital Partners:

2022: IFC and Jubaili Holdings Partner to Enhance Food Security in Sub-Saharan Africa

  • The partnership will support the company to expand its regional footprint and increase thousands of smallholder farmers’ access to key inputs such as fertilizer used to protect crops and increase food production.
  • IFC’s $35mn financing package will help Jubaili expand its production capacity in Nigeria, Ghana, Tanzania, and Uganda, helping to offset Africa’s reliance on agrochemical imports. Farmers use agrochemicals to protect crops against pests and diseases. With support from the local currency facility, IFC provided $20mn of the financing in Nigerian Naira.
  • The financing package will be accompanied by advisory services to support Jubaili to incorporate products that contribute to climate adaptation and climate smart agriculture such as drip irrigation equipment.

“Our partnership with Jubaili will contribute to improving food production in sub-Saharan Africa at a time when many parts of Africa, and the world, face rising food prices and food shortages. The region is heavily reliant on imported agrochemicals for crop protection and this partnership will improve the competitiveness of local production.” said Samuel Dzotefe, IFC’s Manager for Agribusiness and Forestry in Africa

2019: Sahel Capital enables hibiscus export from Nigeria with a Trade Finance Loan to Sourcing and Produce Limited (S&P)

  • The loan will enable S&P to expand its hibiscus flower supply chain and finance the aggregation of the flowers from smallholder farmers. Sahel will organise the farmers into cooperatives to improve their productivity and provide access to inputs, which will significantly impact the income and livelihood of these hibiscus farmers and their families.

“Companies like S&P provide a double advantage to their host countries. They generate export earnings while also building the capacity of smallholder farmers with whom they partner.” stated Deji Adebusoye, Principal, Sahel Capital.