Sahel Capital, an investment manager focused on the food and agriculture sectors across sub-Saharan Africa, has successfully closed a $2.4m working capital loan to Kuapa Kokoo through its Social Enterprise Fund for Agriculture in Africa (SEFAA). 

The facility represents a renewal of Sahel Capital’s earlier financing to KKL and will support the company’s increased working capital needs for cocoa procurement.

Deji Adebusoye, Partner at Sahel Capital, said: “Kuapa Kokoo remains a strong example of a farmer-owned institution that delivers real value to smallholder
farmers. This renewed facility reflects our confidence in KKL’s operating model and ensures that farmers within the KKFU network continue to have reliable access to markets.”

Kuapa Kokoo  is a licensed buying company (LBC) based in Ghana and plays a critical role in the country’s cocoa supply chain. 

The company is largely owned by the Kuapa Kokoo Farmers Union (KKFU), the largest farmer cooperative in West Africa, comprising over 100,000 certified cocoa farmers. 

Kuapa Kokoo  purchases cocoa beans from its farmer members and supplies them to the Ghana Cocoa Board (COCOBOD) for export to international
markets at regulated prices.

Emmanuel Arthur, Managing Director of Kuapa Kokoo, said: “The renewal of this facility strengthens our ability to support our farmers during the cocoa season. This partnership with Sahel Capital enables us to continue serving our farmer members efficiently and at scale."

Sahel Capital currently manages three funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which invests in agribusiness SMEs in Nigeria; the Social Enterprise Fund for Agriculture in Africa (SEFAA), which primarily provides structured debt to agribusiness SMEs across 13 countries in sub-Saharan Africa; and the Sahel Capital Agribusiness Fund II (SCAF II), which provides private equity investments in agribusiness SMEs in West Africa.

Jackson, Etti & Edu (JEE) advised SEFAA on this transaction.