Sahel Capital has announced the first close of its successor growth equity vehicle, Sahel Capital Agribusiness Fund II (SCAF II), securing USD29 million in commitments and concurrently deploying its first capital into Nigeria’s leading cold-chain distribution platform, Delifrost Caterers Limited.
The fund, which is targeting a final close of USD75 million over the next year, represents a significant injection of blended finance into West Africa’s food systems. Anchored by German development bank KfW alongside a US-based family office, SCAF II is structured with a first-loss tranche and dual-domiciled in Mauritius and Nigeria. It will focus on growth equity investments across Nigeria, Ghana, Côte d’Ivoire, and Senegal, targeting businesses that strengthen food security, enable import substitution, and enhance climate resilience. The first investment in Delifrost—a 15-year-old business with its own product brands—aims to scale the country’s cold-chain infrastructure while lowering the carbon intensity of food distribution.
The transaction underscores how blended finance can unlock institutional capital for climate adaptation—specifically by targeting post-harvest losses, which account for up to 40% of food produced in Nigeria. SCAF II’s model ties commercial returns to measurable outcomes: the fund projects the creation of over 2,000 direct jobs, improved livelihoods for 30,000 smallholder farmers, and a reduction of 145,000 tonnes of CO₂-equivalent emissions over its life. The investment in Delifrost directly addresses SDG 2 (Zero Hunger) and SDG 13 (Climate Action) by building a more efficient and sustainable cold chain.
With a robust pipeline already in place, Sahel Capital is now focused on completing the regulatory process with Nigeria’s Securities and Exchange Commission to admit local commitments. The firm, which manages three funds across the continent, continues to demonstrate a long-term, integrated approach to building resilient agribusinesses. As West Africa grapples with food security and inflationary pressures, the successful deployment of SCAF II will be one to watch for investors seeking both risk-adjusted returns and tangible development outcomes.