Jefferson Capital

background

In 2022, I was commissioned by a London-based investment firm to scout opportunities across African markets. Over the year, I traveled extensively through countries like Kenya, Nigeria, Ghana, and Côte d’Ivoire, diving into the agricultural, retail, and food distribution sectors. My work involved identifying and underwriting investments in farms, food processing companies, and fintech startups supporting trade credit.

problem

Africa is home to vast untapped resources and produces many globally sought-after commodities, such as cocoa, coffee and cashews. However, the continent often exports these raw materials without capturing the higher value from processing and manufacturing. For example, Côte d’Ivoire and Ghana collectively export $5.7 billion worth of cocoa but capture only a fraction of the $130 billion global chocolate market. Infrastructure, limited processing capacity, and fragmented supply chains are major bottlenecks preventing Africa from retaining more economic value domestically.

solution

Our work focused on identifying ways to support Africa’s move up the value chain, with an emphasis on:

• Investing in Local Processing: Establishing facilities to process raw commodities like cashews and cocoa locally, reducing transportation costs and enabling African producers to capture more of the value created.

• Developing Partnerships: Collaborating with local partners with deep market knowledge and networks to navigate regulatory frameworks and cultural nuances.

• Promoting Industrialization: Advocating for investments in manufacturing capacity and leveraging government incentive programs like Côte d’Ivoire’s tax breaks and special economic zones.

→ Read my global cashew market breakdown