Sahel Capital, a private equity firm focused on African agriculture, has announced a $1.5 million working capital loan to Rasad Nigeria Limited, an agribusiness specializing in cocoa and cashew aggregation. This strategic financing, provided through the Social Enterprise Fund for Agriculture in Africa (SEFAA), aims to enhance Nigeria’s agricultural supply chains. The investment will directly support Rasad's expansion plans, enabling it to increase its engagement with over a thousand smallholder farmers.
Strengthening Agricultural Supply Chains
The funding represents a significant renewal and expansion of an existing partnership, underscoring Sahel Capital's confidence in Rasad's operational capabilities. Managed by Sahel, SEFAA provides structured financing to agricultural SMEs across sub-Saharan Africa to bridge critical funding gaps. This particular loan is designed to meet Rasad's growing capital needs as it scales its operations within the competitive cocoa and cashew markets.
Based in Ogun State, Rasad serves as a vital link between rural farmers and larger markets, both domestic and international. With this new capital injection, the company plans to increase its procurement from local producers and offer more stable, competitive prices. This approach is expected to stabilize incomes for its network of smallholder farmers while ensuring a reliable supply of high-quality commodities for its clients.
A Strategic Vision for Growth
This investment coincides with Rasad's launch of its "Rasad 2.0" initiative, a strategic pivot towards greater value creation and diversification. The program marks the company's transition from primarily aggregating raw commodities to developing more sophisticated processing and trading operations. This forward-looking strategy is designed to capture higher margins and build a more resilient business model in a volatile global market.
A key component of this new phase is the establishment of Axias Global, a dedicated entity focused on specialized export trading and circular economy initiatives. Rasad is also intensifying its focus on value-added processing, which will transform raw agricultural produce into higher-value products. These efforts reflect a commitment to sustainable growth and innovation within Nigeria’s agribusiness sector, moving beyond traditional supply chain roles.
Addressing Nigeria's Agribusiness Financing Gap
The deal arrives at a crucial time for Nigeria's agricultural sector, which faces an estimated financing gap of nearly $183 billion. Such a significant shortfall particularly affects small and medium-sized enterprises like Rasad, hindering their potential for growth and innovation. Targeted investments like the one from SEFAA are therefore essential for strengthening the sector's resilience and contributing to the country's broader economic development.
Deji Adebusoye, a partner at Sahel Capital, highlighted the firm's confidence in Rasad, citing its "strong operational discipline and consistent growth." Echoing this sentiment, Rasad's Director of Strategy and Finance, Ahmed Adeagbo, noted the company's resilience amid global market headwinds. He added that recent successful experiments have provided the confidence to "double down" on their expansion strategy with Sahel's support.
The $1.5 million loan from Sahel Capital is more than a financial transaction; it is a strategic endorsement of Rasad Nigeria's vision for a sustainable agricultural value chain. By empowering a key local aggregator, the investment promises to deliver tangible benefits to smallholder farmers and enhance Nigeria's position in global commodity markets. This partnership exemplifies a targeted approach to fostering inclusive economic growth and building a more robust agribusiness ecosystem.