Our Strategy
Theory of change
At the heart of FASA’s mission lies a commitment to unlocking the potential of Africa’s agricultural sector through three impact pathways (Mobilizing catalytic capital, enhancing the capacity of fund managers and agri-SMEs, and fostering a supportive ecosystem). These impact pathways feed into the impact themes that corresponds to FASA’s vision to contribute to transform African agriculture by:
Enhancing food security and nutrition
FASA promotes activities that support food security and nutrition, contributing to Sustainable Development Goals (SDGs) 2 (Zero Hunger), 3 (Good Health and Well-Being), and 12 (Responsible Consumption and Production).
Improving livelihoods
Farmers are the backbone of Africa’s food systems, yet they often face challenges that limit their productivity and profitability. FASA will promote activities that support farmers’ livelihoods and jobs, contributing to SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).
Promoting climate-smart value chains
FASA will promote climate-smart agricultural practices and technologies contributing to boost productivity, enhance resilience to climate change, and reduce or remove greenhouse gas emissions. Contributions to SDG 7 (Affordable and Clean Energy), 13 (Climate Action), 14 (Life below Water), and 15 (Life on Land) are expected.
Investment strategy
FASA indirectly supports agri-SMEs along the agri-food value chain, through for-profit investment funds implementing various investment strategies across a range of asset classes, currencies, and geographies within Africa.
Geographic and sector focus
FASA supports funds investing in agri-SMEs headquartered or operating in Africa, including North and South Africa. It targets various agricultural subsectors, enabling broad exposure across the value chain.
Assets classes
FASA targets different profiles of Investment Funds, categorised by asset class e.g., Early-stage SME, Growth SME, Venture Capital, Debt, or Alternative Funds) and the maturity of their managers (emerging or established).
Investment instruments
FASA provides catalytic capital primarily in the form of junior equity tranches to its investee funds. It can also deploy other instruments, such as straight equity, preference shares, junior debt, mezzanine debt, or a mix of of these, depending on the structuring required to maximize its catalytic role.
Investment range
FASA’s contributions range from $2 million to $20 million per investment, typically representing 10% to 49% of the fund’s target size.
Investment horizon
With a focus on providing patient capital, FASA offers flexible repayment timelines and longer exit periods than traditional investors, while ensuring liquidity provisions.
Focus: Technical Assistance
In addition to investing catalytic capital, FASA provides technical assistance support to its Funds managers and their agri-SME portfolio companies. Technical assistance is deployed throughout the investment process: starting at screening stage, and lasting over the 10+ years FASA remains an investor.
Impact Themes
FASA’s impact themes—enhanced food security and nutrition, improved livelihoods, and climate-smart value chains—are rooted in its Theory of Change. These themes guide FASA’s support for Investment Funds that back agri-SMEs whose business models and offerings align with these specific areas of impact.
FASA also prioritizes two cross-cutting themes: gender and climate. These themes are embedded across the investment process, ensuring that FASA evaluates and strengthens gender and climate practices for all IF managers and their agri-SMEs, regardless of their maturity or focus areas. Through targeted capacity building, FASA works with investment fund managers to enhance their understanding and integration of gender and climate considerations, ultimately driving greater accountability and impact in these critical areas.
Focus: Gender
FASA’s gender strategy is based on an existing and internationally recognized framework: the 2X Challenge. This facilitates performance benchmarking and contribute to sharing knowledge on gender topics.
Focus: Climate
Climate is part of both FASA’s impact themes and cross-cutting themes:
As an impact theme (climate-smart value chain), FASA supports funds that finance agri-SMEs which core business will address climate issues. These agri-SMEs will produce goods or services responding to climate challenges such as soil and crop management, water management, energy management, conservation and restoration, adaptation services.
As a cross-cutting theme, FASA analyzes climate-related practices, at both investment fund and agri-SME levels. Indeed, whatever their sector of activity and the goods and services they produce, the way they are produced and the environmental impact they generate must be considered. In the case of agri-SMEs, FASA will therefore be pushing investment funds to take environmental practices into account when selecting and supporting projects.
Theory of change
At the heart of FASA’s mission lies a commitment to unlocking the potential of Africa’s agricultural sector through three impact pathways (Mobilizing catalytic capital, enhancing the capacity of fund managers and agri-SMEs, and fostering a supportive ecosystem). These impact pathways feed into the impact themes that corresponds to FASA’s vision to contribute to transform African agriculture by:
1. Sourcing
FASA actively builds its pipeline by leveraging its sector expertise, partner networks, and visibility at investment and agriculture-focused events. Investment funds that meet FASA’s eligibility criteria are invited to submit an online application.
Approved by Investment Manager
2. Screening
A preliminary analysis of the investment opportunity is conducted to assess its fit with FASA’s criteria, including impact and ESG standards. This stage involves desk research, reputational checks, and an initial evaluation of the fund’s structure and strategy. If the opportunity progresses, FASA issues a non-binding Letter of Intent (LOI) outlining its interest.
First Advisory Investment Committee
3. Due Diligence
Following acceptance of the LOI, FASA conducts a detailed due diligence process. This includes a comprehensive review of the fund’s structure, investment strategy, team, governance, ESG and impact policies, technical assistance needs, and co-investor alignment. Key findings are compiled into an Investment Memorandum, which includes proposed terms, ESG action plans, and capacity-building initiatives. This document is presented to FASA’s advisory committee for feedback and eventual Council validation.
Second Advisory Investment Committee
Investment Manager's decision
Validation by the Foundation Council
4. Closing
Once an investment is approved, a commitment letter is issued, detailing the conditions and requirements for disbursement. This stage involves finalizing legal agreements and ensuring compliance with regulatory requirements. FASA also collaborates with the fund manager to meet any pre-conditions, such as securing additional capital to reach the fund’s first close. Upon fulfilling all conditions, the approved capital is disbursed.
5. Monitoring and Reporting
FASA maintains active oversight of its investments to ensure financial and impact objectives are met, including regular reviews of the fund’s performance and annual reporting to contributors, covering financial trends, ESG and impact performance, and technical assistance outcomes.
6. Exit
FASA plans flexible exit strategies tailored to the structure of each fund and the type of subordinated capital invested. Exit strategies are developed during the initial investment process and revisited periodically.
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