The UK’s Department for International Development (DFID) Impact Fund, which is managed by CDC, has announced that it will invest £9.04m ($15m) into Injaro, a West African agriculture-focused fund, which makes sustainable investments into small and medium-sized agricultural enterprises.

Diana Noble, CDC’s Chief Executive, said: "Through the Impact Fund, CDC is providing capital to businesses and projects improving the lives of the poorest people in Africa and South Asia.”

“This investment in Injaro will create economic opportunities for thousands of rural smallholder farmers and low-income producers and consumers across West Africa. It will also support the team to raise additional capital from other commercial investors,” she said.

The investment will help farmers in the West African countries including Ghana, Cote d’Ivoire and Mali improve their food security and income, helping lift them out of poverty.  

The investments will also provide better quality seeds and fertilizer for farmers to grow their produce.

In addition, the investment will supply essential products and services to growing local consumer markets and help companies make the most of export opportunities.

Justine Greening, UK International Development Secretary, said: “Economic development is the only way countries can leave behind enduring and chronic poverty for good. This investment is a clear example of how the UK is using its development expertise to kick-start investment and help the poorest move out of poverty.

“The funding will enable farmers in West Africa to grow larger supplies of crops and help them to trade what they grow. This not only allows farmers to grow enough produce to feed their families but can also turn small-holder farmers into budding agricultural businesses, boosting their prosperity in the long-term,” he added.

Alongside the investment from the DFID Impact Fund, investment has also been leveraged from the French Development Finance Institution Proparco (£4.2) and the Dutch Development Finance Institution FMO (£6m).

Injaro already has £10.2m ($16.2m) of private capital from Lundin Foundation, Soros Economic Development Fund and Alliance for a Green Revolution in Africa. 

Jerry Parkes, CEO of Injaro, said: “The Injaro team is proud to have secured investments simultaneously from three reputable institutions with a long track record of African investments. These new investments from the UK, FMO and Proparco give our fund scale and legitimacy in the impact investment space, helping to build a track record that will attract further private investment into this emerging asset class.”

“With an increased fund size of $49m we hope to positively impact over 1 million smallholder farmers and low income persons in West Africa,” he added.