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Eligibility criteria
To be eligible for FASA funding, an investment fund must:
Have a local presence in Africa, i.e. at least one senior investment professional based, or with the intention to be based, in Africa within the fund closing period
Be an SME Investment Fund that provides initial investment ticket sizes ranging from $15K to $5M
Deploy at least 30% of its total investable capital in agri-SMEs in Africa
Exclude investments in SMEs who are engaged in any of the activities in the IFC Exclusion List
ESG Practices Commitment
Commit to implement FASA’s minimum ESG and impact practices
Gender Requirements Alignment
Align with FASA’s gender requirements
Focus: what are agri-SMEs?
FASA’s scope of agri-SMEs corresponds to the scope defined by SAFIN (The Smallholder and Agri-SME Finance and Investment Network) and ISF Advisors.
Agri-SMEs are entities that are involved in the agricultural value chain, either directly or by providing enabling services to value chain actors. These are:
Food-centric SMEs.
Either conventional or tech-driven SMEs that are central to food systems, including SMEs involved in the various stages of the agricultural sector, from input supply and pre-production, to production, post-harvest and transport, trading and marketing, processing, and retail and consumption, and agri-service SMEs such as advisory, supply chain management, equipment, market access and finance providers.
Farmer cooperatives
Cooperatives such as farmer organisations and rural Savings and Credit Cooperatives (SACCOs)
Small companies
Companies with less than 300 employees, and an annual turnover or total assets less than $15M.
Investment Process
FASA’s investment process is designed to identify, evaluate, and support investment funds that align with our mission. ESG risks and impact measurement are at the heart of FASA’s strategy and are integrated throughout this investment process.
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.
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
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.
Apply for funding
Are you an investment fund manager seeking catalytic capital to support agri-SMEs in Africa?
Apply
Submit your fund proposal and supporting documents through our streamlined application portal.
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Eligibility Criteria
Review the requirements to ensure alignment with FASA’s goals.
Useful Links
Access detailed information about our policies by clicking on the links below: