SEAF KASI Agriventures

Founded in 2015, KASI Agriventures is an investment program funded by the US Department of Agriculture and implemented by SEAF to provide debt and equity to growing businesses and producers in the agricultural sector of Tanzania

Investment Strategy

• KASI targets SMEs in the country’s agriculture sector, specifically agribusinesses involved in animal feed production and fruit, vegetable, and/or spice processing. KASI also invests in working capital and equipment leasing providers as well as non-bank financial institutions serving small, growing agribusinesses.
• KASI invests debt and equity between US$ 500,000 to US$ 2,000,000 in growth-stage firms operating in Tanzania. The program also adds value to agribusiness investees and their supply chain of smallholder farmers in order to increase agricultural productivity and expand the trade of agricultural products.
• SEAF further provides strategic and operational support to KASI portfolio companies as well as other SMEs and emerging leaders through the Center for Entrepreneurship and Executive Development (CEED), which was established in Tanzania in 2016.
• Moreover, through SEAF’s post-investment value creation activities, the team has supported portfolio companies in expanding, and further formalizing their contractual relationships with smallholder farmers as well as training on agriculture best practices and business management.

Investment Thesis

• With a rapidly growing population of more than 50 million people and real GDP growth rate of 7% in 2018, Tanzania is one of the fastest-growing countries in East Africa. The agriculture sector, in particular, is an important driver of economic growth, as the sector provides two-thirds of all employment. Agricultural productivity in the country, however, remains low and requires increased mechanization and more efficient post-harvest management practices. Additionally, the sector is driven by smallholder farmers who have limited access to irrigation, improved seeds, fertilizers, and input financing.
• SEAF believes that increased private sector investment in the sector can support the crucial investments already being made by the public sector in infrastructure to build an enabling environment for agricultural value chains.
• KASI has been a catalyst allowing SEAF to develop a pipeline and presence in East Africa, achieving development impact in the sector, and building the institutional knowledge and network necessary to operate in the region.
• KASI addresses the UN Sustainable Development Goals, including #8 Decent Work and Economic Growth and #12 Responsible Consumption and Production.

Local Team