Sahel Africa secures $29 million for SCAF II, acquires minority stake in Delifrost

 

Sahel Capital, a private investment firm specializing in sub-Saharan Africa's agribusiness sector, has announced the first close of its successor growth equity fund, Sahel Capital Agribusiness Fund II (SCAF II), securing $29 million in commitments in early December 2025.

The fundraising milestone was anchored by KfW Development Bank, with additional participation from a U.S.-based family office through a Mauritius-based vehicle. Commitments to the Nigeria-domiciled portion of the fund are expected following approval from the Securities and Exchange Commission in Nigeria. SCAF II targets a final close of $75 million within the next 12 months.

As a blended finance vehicle featuring a first-loss tranche and dual domiciliation in Mauritius and Nigeria, SCAF II succeeds the Fund's for Agricultural Finance in Nigeria (FAFN). The fund will deploy growth equity investments across the agribusiness value chain in West Africa, prioritizing Nigeria, Ghana, Côte d’Ivoire, and Senegal. Its strategy focuses on supporting businesses that enhance food security, bolster climate resilience, promote import substitution, and improve value-chain efficiency.

Over the fund's life, SCAF II is projected to facilitate the creation of more than 2,000 direct jobs, improve livelihoods for approximately 30,000 smallholder farmers, and achieve around 145,000 tonnes of CO₂-equivalent emissions reductions. These outcomes are anticipated through targeted investments in areas such as cold-chain logistics, efficient processing, and reductions in post-harvest losses.

Concurrently with the first close, SCAF II completed its inaugural investment by acquiring a significant minority stake in Delifrost Caterers Limited, Nigeria's premier integrated cold-chain distribution platform for chilled and packaged foods. 

Sahel Capital manages a portfolio of funds dedicated to the sector, including FAFIN (with prior investments and exits in Nigerian agribusinesses), the Social Enterprise Fund for Agriculture in Africa (SEFAA, providing structured debt to SMEs across 13 sub-Saharan countries), and now SCAF II. The firm maintains registrations and regulatory oversight in both Mauritius and Nigeria.