FAFIN is sponsored by the German KfW Development Bank in collaboration with the Federal Government of Nigeria, through the Federal Ministry of Agriculture and Rural Development, FMARD.
The fund, which is managed by Sahel Capital, will focus on the development of SMEs by providing financial, capacity-building and technical assistance to commercially viable SMEs in the Nigerian agribusiness sector.
FAFIN is in alignment with AFDB’s Ten Year Strategy to focus on inclusive growth, strengthening agriculture and food security, and access to local SME finance in Africa.
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It is expected to improve the economy of Nigeria by providing a large number of jobs, support rural developments and alleviate financial constraints faced by agribusinesses owners in the private sector.
The AFDB aims to also alleviate farmers’ post-harvest loss, and increase smallholder farmer income.
The fund will also help drive the AFDB’s High Five Development Agenda for Africa, as laid out by President of the institution, Akinwumi Adesina, during his inaugural speech after taking office on September 1, 2015.