MICROCAPITAL BRIEF: DFC Approves $9m, 10-year Loan to Apollo Agriculture of Kenya

Kenya-based Apollo Agriculture, a technology company that works with small-scale farmers to boost their profits, recently agreed to borrow USD 9.5 million for up to 10 years from the government-backed US International Development Finance Corporation (DFC). Apollo provides the following services in Kenya, bundled as a single package for each farmer: microloans, seeds, fertilizer, insurance, satellite data and market connections. Among the strategies of the firm is to automate its processes to reduce costs and boost scalability. In addition to Kenya, the firm has entities in the Netherlands and the US. Financial data on Apollo are not available.

DFC was launched in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organization issues equity placements, insurance, technical assistance and research in areas such as “energy, healthcare, critical infrastructure and technology.” Upon its founding, DFC took over the work of the Overseas Private Investment Corporation (OPIC) as well as the Development Credit Authority of the US Agency for International Development. During 2020, DFC brought in net income of USD 232 million, closing the year with assets of USD 12 billion.

By Zachary DeLuca, Research Associate

Sources and Additional Resources

DFC press release
https://www.dfc.gov/media/press-releases/dfc-approves-21-new-investments-mobilizing-more-11-billion-tackle-development

Apollo homepage
https://www.apolloagriculture.com/

Get-Funded-Africa article on other funders of Apollo
https://media.getfundedafrica.com/2021/06/23/kenyan-ag-tech-startup-apollo-agriculture-raises-us1mn-debt-funding/

DFC background on its Apollo investment
https://www.dfc.gov/sites/default/files/media/documents/9000104719.pdf

DFC homepage
https://www.dfc.gov/

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