Sahel Capital, a prominent investment manager in the food and agriculture sector in sub-Sahara Africa, has successfully closed an investment of US$400,000 working capital loan through its Social Enterprise Fund for Agriculture in Africa (SEFAA). SEFAA aims to stimulate economic activities among smallholder farmers by empowering the social enterprises that engage with them.
MM LEKKER, a Benin-based company with operations in Abomey-Calavi, is actively transforming the regional agricultural trade landscape. The company specializes in selling soybean, shea nuts, and cashew nuts, catering to both local and international markets. MM LEKKER has made significant strides in expanding its smallholder farmer network across key agricultural regions in northern Benin. The company also offers storage solutions, enabling farmers to reduce post-harvest losses and sell their products at optimal market conditions, ultimately securing higher revenues.
“MM LEKKER plays a crucial role in strengthening smallholder farmers' economic stability in Benin,” said Aicha Haidara, Vice President at Sahel Capital. “The agricultural supply chain in the region remains highly fragmented, with farmers facing multiple intermediaries before reaching end buyers. MM LEKKER’s direct-to-market model significantly shortens this distance, allowing farmers to secure fairer prices and reinvest in future harvests. By working with MM LEKKER, buyers can contribute to sustainable economic impact, ensuring that smallholder farmers, the backbone of Benin’s agricultural sector, thrive.”
Ahimakin Armel Theodore, CEO of MM LEKKER, highlighted the importance of this partnership, stating: “Smallholder farmers produce a significant portion of Benin’s agricultural output, yet they often struggle with limited market access, price volatility, and inefficient value chains. Since its inception, MM LEKKER has successfully connected over 1,000 farmers to local and international buyers, ensuring better trading opportunities and stable pricing. Our partnership with SEFAA marks a major milestone in scaling our impact, optimizing supply chains, and empowering farmers to build more resilient and profitable livelihoods. This collaboration aligns with our vision of transforming Benin’s agricultural trade, making it more sustainable, efficient, and inclusive for farmers, buyers, and investors alike.”
Sahel Capital currently manages two funds: Fund for Agricultural Finance in Nigeria (“FAFIN”), which has investments in SME agribusinesses in Nigeria, and Social Enterprise Fund for Agriculture in Africa (“SEFAA”), which provides primarily structured debt to agribusiness SMEs across 13 countries in sub-Saharan Africa. Sahel Capital is also raising capital for a successor fund – Sahel Capital Agribusiness Fund II, which will focus on investment opportunities across West Africa.
EPENA LAW advised SEFAA on this transaction.