AFRICA - Incofin Investment Management has unveiled the first three investments from its recently launched Nutritious Foods Financing Facility (N3F), marking an important milestone in efforts to enhance food security and nutrition in Sub-Saharan Africa. 

Each recipient has secured debt financing between US$0.5 million and US$1 million, aimed at scaling up production and expanding access to nutritious food for low-income households across the region. 

The funding also includes tailored technical assistance managed by the Global Alliance for Improved Nutrition (GAIN), further amplifying the impact of these investments.

The announcement was made during the Africa Food Systems Forum in Kigali, Rwanda, a key event highlighting innovative financing solutions to revamp food systems.

Kenyan SME Shalem Investment Ltd leads the way

The first recipient, Shalem Investment Ltd, is a Kenyan small and medium-sized enterprise (SME) engaged in aggregating produce from smallholder farmers and producing fortified flours. 

Shalem’s offerings include fortified maize and wheat flours, which are essential for staple foods like Ugali and porridge. These fortified flours are pivotal in combating malnutrition by providing a cost-effective source of micronutrients, particularly in rural areas where diverse and nutritious food options are scarce.

Zambian innovator Good Nature Agro secures support

The second investment went to Good Nature Agro, an innovative Zambian SME specializing in legumes and seeds. 

Good Nature Agro collaborates with over 15,000 smallholder farmers, enhancing local food security and contributing to the company’s recognition as one of Africa’s fastest-growing enterprises by the Financial Times. 

The N3F funding will support increased access to quality beans and groundnuts, either as seeds for replanting or food for local consumption.

Camino Ruiz: Advancing aquaculture and women's empowerment

Camino Ruiz, based in Kenya, is the third beneficiary. The company focuses on distributing tilapia fish and works closely with Global Tilapia and local farmers’ groups. 

Tilapia is a critical protein source, rich in vitamins and minerals essential for low-income communities. 

Camino Ruiz also prioritizes women’s empowerment by supporting women’s groups in Homabay County with training and economic opportunities, particularly for women and youth.

Commitment to bridging the nutritional funding gap

Myrtho Vlastou, Debt Director of Africa at Incofin Investment Management, highlighted the significance of these initial investments. 

“These investments exemplify N3F’s mission to bridge the funding gap for SMEs in Sub-Saharan Africa,” she remarked. 

“By supporting Shalem Investment Ltd and Good Nature Agro, we are fostering businesses that deliver critical nutritional benefits to their communities. Our focus remains on driving tangible, sustainable change where it is needed most.”

Roberta Bove, Senior Lead Innovative Finance at GAIN, echoed this sentiment, noting, “We are incredibly pleased to announce the first investments of N3F, showcasing the breadth of opportunities for investing in nutrition in Sub-Saharan Africa. We believe in the impact potential of these business models and look forward to further investments across various value chain stages through a food system approach.”

A comprehensive strategy for nutritional impact

Launched in July, the N3F is a collaborative effort between Incofin, GAIN, the U.S. Agency for International Development (USAID), and the Swiss Agency for Development and Cooperation (SDC). 

The fund aims to enhance the production and distribution of safe and nutritious foods across Sub-Saharan Africa, impacting millions of lives.

N3F is structured as an open-ended debt fund targeting small and medium enterprises focused on improving nutrition. 

The fund's innovative blended model combines public and private donor funds to attract private capital. 

Over the next decade, N3F aims to generate over half a billion additional servings of nutritious food, benefiting more than 7 million people, with a particular emphasis on women and children.

In addition to financial support, N3F is committed to providing technical assistance through GAIN, funded by a grant from the Netherlands Ministry of Foreign Affairs. GAIN will lead knowledge dissemination and validate metrics for nutrition-sensitive investments, establishing N3F as a pioneering nutrition fund.

Addressing nutritional challenges in Sub-Saharan Africa

The need for such initiatives is underscored by the fact that malnutrition affects over one in three people globally, with Sub-Saharan Africa experiencing some of the most acute challenges. 

Many Africans, particularly those in low-income households, cannot afford a healthy diet, and the continent faces significant shortages in essential fruits and vegetables. 

With climate change exacerbating food insecurity, the region is projected to see a rise in undernourished individuals by 2050, highlighting the urgent need for effective and scalable solutions.