Fanisi Capital has invested $2.1 million (about Ksh180 million) in a mid-sized Kenyan-based food company, in a move that expands the private equity firm’s investment footprint in East Africa’s vibrant food processing sector. European Foods Africa Ltd (EFAL), will use the funds to support its growth strategy and strengthen its operational systems and ensure stability.
Mr Tony Wainaina, Managing Partner at Fanisi Capital, said the deal confirms the increasing number of well-run local small-to-medium enterprises tapping into the region’s growing population and the rising economic prospects to create investment value. “We are supporting a strong entrepreneur who has developed a good understanding of the evolving local consumer preferences over several years, and has identified a niche product whose demand continues to grow,” said Mr Wainaina.
EFAL is involved in the cold chain frozen foods distribution and value addition business. The company distributes its products, which include pizzas, whole berries and fresh berry beverages that appeal to the health conscious consumer, to a wide client base that includes supermarkets, grocery stores and restaurants in Nairobi and Mombasa.
Mr Stephan Belzer, EFAL’s Chief Executive Officer, said: “Fanisi’s support and resources will drive the business to differentiate its brand through quality frozen product offering a stable and reliable cold chain system.”
With the combined population of the East African Community expected to hit 240 million by 2019, EFAL intends to leverage this opportunity by increasing its product offering and widening its regional customer base. Fanisi has already made inroads into the regional food processing sector.
The private equity firm has invested in Ngare Narok Meat Industries Ltd a meat processing and distribution/retail business in Kenya, and ProDev Group Holdings in Rwanda, a grain handling business (sourcing, drying, storing, trading, purchasing, milling and animal feed production) in Rwanda.
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