ADAP Fund 2 – Grasslands Cameroon Inc – Sept 22nd 2020
ADAP Capital LLC is delighted to have closed its investment in Grassslands Cameroon Inc, its 8th portfolio investment from ADAP Fund 2 (it’s 19th investment to date).
Grasslands improves the livelihoods of small-holder farmers in Cameroon by increasing their yield with healthier, better-quality food while simultaneously reducing post harvest waste. Grasslands’ integrated approach works with each farmer to get them the necessary asset-based credit in the form of inputs, access to machinery and fair purchase price, thereby changing the power dynamics in the supply chain.
“As an American of Cameroonian heritage, I am passionate about local African food supply chains and have seen the impact on small-holder farmers in my family directly” said Grasslands Founder Manka Angwafo, “We are delighted to have ADAP on board as a long term partner because of their hands on approach in providing advisory services; we think their commitment validates our hard work, and provides both financial and strategic support to navigate these uncertain economic times.”
The model of collaborating with small-holder farmers to make incremental changes in their business practices creates value for the farmers that was not there previously. In addition, the established partnerships with some of the biggest buyers in the country is leading to systemic shifts in the supply chain. Agriculture remains the largest sector of employment across Africa, providing income to over 60% of the population in sub-sharan Africa, affecting billions of people.
Angwafo worked at the World Bank previous to setting up Grasslands and is currently raising the next round of capital ahead of the upcoming seasonal cycle. The goal is to reach 5,000 farmers within five years. In addition to ADAP Capital’s investment, the Truss Fund will be providing a working capital loan to help fuel the 2021 expansion plans for Grasslands.
“We have been privileged to get to know Manka during this COVID season and our ‘4-hour due diligence’ model allows us to continue to work virtually with pioneering social entrepreneurs in spite of the incredibly challenging circumstances of 2020” said Andy Lower, ADAP Founder “Our Fund 2 portfolio is explicitly designed to be as inclusive as possible, to work with the most marginalised in our world. We are excited to use our ADAP Advisory model to help Grasslands to continue to lay the foundations for long term sustainability.”
ADAP Capital has just closed on a recent round of financing and is currently investing in innovative business models that are eradicating extreme poverty in emerging markets.