AquaFedha launches to bridge Africa’s aquaculture financing gap

KENYA – AquaRech Ltd has launched AquaFedha, Africa’s first credit finance product tailored for small and medium-sized fish farmers, to address the critical funding challenges in the region’s aquaculture sector. 

Developed through a partnership between AquaRech Ltd, Equity Bank, and TechnoServe, AquaFedha is designed to facilitate access to affordable credit, enabling farmers to transition from subsistence to commercial-scale production.

Despite producing nearly 60% of Africa’s aquaculture output, small and medium-sized fish farmers often struggle to access financing due to a lack of collateral, formal records, and scalable operations. 

Traditional banking models have largely excluded them, limiting their ability to invest in quality inputs, expand operations, and adopt modern technology.

AquaFedha introduces a tailored credit model that evaluates farmers based on their production potential rather than conventional banking metrics. This approach aims to bridge the estimated US$5 billion credit gap in Africa’s aquaculture industry, providing much-needed capital to enhance productivity and market access.

Expanding commercial aquaculture production

The new credit product will enable farmers to purchase high-quality fingerlings and feed in bulk, reducing production costs. 

It will also support investment in durable High-Density Polyethylene (HDPE) cages and large-scale pond systems, which are essential for increasing yields. 

Additionally, AquaFedha integrates digital technology by linking farmers to AquaRech’s mobile application, offering real-time advisory services and financial management tools.

Equity Bank’s financial inclusion framework ensures that loan repayment structures remain flexible and accessible, while TechnoServe’s CASA program strengthens the initiative through blended finance support. 

The combined expertise of these partners enhances the sustainability of AquaFedha, ensuring that farmers can optimize credit use and improve their operations.

By empowering small and medium-sized fish farmers, the initiative contributes to increased local fish production, reducing reliance on imports and stabilizing regional food supplies.

Beyond production, the initiative is expected to create employment opportunities, particularly for women and youth engaged in fish farming and processing. The credit product also emphasizes climate-resilient practices by supporting sustainable aquaculture techniques that minimize environmental impact.

Investment and market expansion

The launch of AquaFedha follows AquaRech’s expansion in the East African market. In early 2024, the company opened an outlet in Kisumu, Kenya, after securing a US$1.7 million (KES 259,845,000) seed investment in November 2023. 

The funding round, led by Aqua-Spark, a Netherlands-based global investment fund focused on sustainable aquaculture, also saw participation from Acumen, Katapult, and Mercy Corps Ventures. 

Additionally, in July 2024, AquaRech received US$350,000 from Village Capital, a global organization that supports impact-driven, seed-stage startups.

Founded by Dave Okech (CEO), James Odede (CTO), and Joseph Okoth (Director of Operations), AquaRech’s digital fish farming platform connects various stakeholders in the aquaculture value chain. 

The platform facilitates transactions between farmers, feed manufacturers, and buyers while offering mobile-based tools for financial management and advisory services.

With AquaFedha’s rollout, the partnership between AquaRech, Equity Bank, and TechnoServe seeks to transform Africa’s aquaculture landscape, ensuring that smallholder fish farmers have the resources needed to scale operations, enhance profitability, and contribute to the region’s food security agenda.