AgDevCo expands portfolio to develop banana industry in Mozambique

MOZAMBIQUE – Social impact investor AgDevCo has announced its latest investment in Mozambique’s agribusiness sector.

The UK-based social impact investor has closed a US$3 million debt investment in Quinta da Bela Vista Limitada (QBV), an irrigated banana estate located in the Boane area in Mozambique.

QBV was established in 2016 as a joint venture between Silverstreet Capital’s Silverlands I Fund and Crookes Brothers Limited and currently comprises 128ha of irrigated bananas.

The company’s strategy is to expand the operation to 260ha over the next two years.

“AgDevCo’s funding of QBV will enable the company to expand and create employment opportunities in an optimal banana-growing area in southern Mozambique.”

Simon Morgan – Director of QBV

AgDevCo’s investment will support QBV’s expansion by providing long-term capital. QBV currently employs over 240 people, with further growth in jobs expected as a result of the expansion. 

The banana industry is a key source of employment, improving the livelihoods of local communities. The export of bananas offers Mozambique the opportunity to increase foreign exchange revenue.

“AgDevCo’s funding of QBV will enable the company to expand and create employment opportunities in an optimal banana-growing area in southern Mozambique.

“They have been an ideal funding partner for QBV, structuring the loan to suit the needs of the company,” said Simon Morgan, Director of QBV.

Crookes Brothers have a proven track record in the banana sector in South Africa providing QBV with expertise and a marketing channel into South Africa.

SilverStreet is one of Africa’s largest dedicated investors in the agricultural sector with investments in eight countries on the continent.

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“We are delighted to back QBV and partner with Crookes and Silverstreet in developing the banana industry in the Boane area, helping to build sustainable impact and bring in export revenue,” said Charlotte Dubois, Investment Director at AgDevCo.

In July 2021, AgDevCo announced a multi-million-dollar mezzanine debt investment in Victory Farms, a rapidly growing aquaculture company in Kenya to support the company’s continued growth and impact, including the construction of a feed mill and expansion into new countries in the East Africa region.

With that transaction, AgDevCo became the largest investor in Victory Farms to date, alongside the founding shareholders and external investors DOB Equity, Msingi East Africa, Ceniarth, CIVF, MCE Social Capital and DEG.

At the end of 2020 AgDevCo’s portfolio comprised US$ 138 million of committed funds into 48 companies and to date, AgDevCo’s investments and technical assistance (current and exited investments) have engaged 764,000 small-scale farmers (39% women) and created or sustained 15,600 jobs (23% women).

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