Tanzanian finance company, which provides SME businesses with equipment leases in local currency without the need for collateral.
AgDevCo has invested $5,000,000 in EFTA to provide funding for its next expansion phase. AgDevCo’s investment is split between equity, to strengthen EFTA’s balance sheet and provide core capital, and debt, which is required to provide EFTA’s financial leases. AgDevCo will also look to support EFTA’s future growth, which will involve raising further debt finance for the business.
Funding for the future
AgDevCo's key achievement has been to secure core funding, which enabled EFTA to be fully regulated by the Bank of Tanzania. With EFTA's strengthening balance sheet, further funding is expected to be catalysed. At an operational level, access to equipment has led to a substantial increase in mechanisation and productivity, and over 4,000 jobs have been created.