FASA, a groundbreaking international initiative to finance agri-SMEs in Africa

I&P is proud to announce its role as fund manager for the newly launched FASA (Financing for Agricultural SMEs in Africa), a multi-donor fund designed to support small and medium-sized agricultural enterprises across Africa. Targeting investment funds focused on agri-SMEs, FASA addresses the substantial financing gap faced by this essential sector for Africa's development.

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An ambitious initiative to finance agri-SMEs in Africa

African agri-food SMEs play a fundamental role: they support 95% of smallholder farmers, handle over 60% of all food production and trade and create 70% of formal employment in food systems. These SMEs are the driving force behind the transformation of agricultural and food systems on the continent, but face a financing gap estimated at $100 billion, hampering their ability to develop sustainably and innovate. (Sources: ISF Advisors, “Landscape mapping and market sizing of agri-SME financial service providers in sub-Saharan Africa”, 2023 ; USAID, “Bridging the gap: financing Africa’s agricultural growth”, 2023)

FASA aims to address this gap with an ambitious, targeted approach. Operating as a fund of funds, FASA’s mission is to finance and empower investment funds dedicated to agricultural SMEs across Africa. By leveraging FASA’s catalytic capital, the funds will attract additional investment, broadening financial access for a larger number of SMEs. FASA also supports the funds to strengthen their gender and climate-lens throughout their investment cycle and fund structuring

« A Fund of funds is a highly impactful vehicle, not only to unlock capital but also to strengthen the ecosystem of Africa-based fund managers, providing them with the capital and support they need to scale. FASA will be providing catalytic capital which is exactly what the agri-SME finance sector requires. » - Jérémy Hajdenberg, Co-CEO of I&P.

A multi-donor fund, managed by I&P

FASA was initiated by Norway and the United States through the United States Agency for International Development (USAID), with the goal of mobilizing $200 million in total commitments.

To date, the United Kingdom and the Republic of Korea have joined the initiative with financial commitments, including an initial contribution of $9 million from the UK. These contributions add to the $70 million provided by USAID and the Norwegian government, bringing FASA closer to its target of $200 million in multi-donor funding.

I&P has been selected, after a competitive process, to manage the FASA fund.

As a pioneering impact investment group dedicated to financing and supporting African entrepreneurs, I&P brings extensive fund management experience, especially in the agriculture and food systems sectors. With over 20 years' experience, I&P has supported 25 African funds and over 100 SMEs in various agricultural value chains, building a solid foundation across 15 African markets.

I&P is partnering with the CGIAR Hub for Sustainable Finance (ImpactSF) as the Agriculture and Climate partner, and with Small Foundation, which will support FASA's learning agenda.

Find out more

FASA's website: www.fasafund.com