KAMPALA—Pearl Capital Partners has made its fifth investment through the African Agricultural Capital Fund. The fund, which is now two years into its investment phase, has investment commitments of $25 million and aims to invest in 15-20 east African businesses operating in the agriculture sector within the next three-to-four years. Pearl has invested $1.5 million in the Uganda-based company KK Fresh Produce Exporters Limited (KK Foods) to acquire a substantial minority stake in the business.
KK Foods is a major exporter of fresh vegetables and fruits to the European market. Its main products are fresh chilies, hot pepper, bananas, okra, egg plants and ground nuts. It sources produce from thousands of smallholder farmers in central and western Uganda.
Speaking from Pearl’s office in Kampala, Uganda, Mike Kinuthia, investment manager responsible for this transaction said, “We are excited to have made this investment in KK Foods. This business is pioneering the export of fresh produce to the European market from Uganda, for the benefit of the business and its base of Ugandan smallholder farmers. Our investment will build momentum in the company’s growth while enhancing the transformation of Uganda’s agricultural export sector.”
Pearl’s investment is designed to provide KK Foods with medium-term capital to expand its cold chain facilities and support volume growth. KK Foods’ founder and CEO, James Kanyije said, “Being a family-owned and managed business, it has not been easy for us to obtain long term finance to expand the business. With Pearl’s capital injection, we fully expect to multiply the supply of Ugandan fresh fruits and vegetables to the European market, significantly boosting profitability and continue sourcing produce from a larger number of Ugandan smallholder farmers.”
About Pearl Capital Partners (http://www.pearlcapital.net/)
Pearl Capital Partners is an independent investment management business domiciled and licensed in Mauritius. Since it was founded in 2005, the Pearl group has made investments in more than 20 agriculture-related businesses in East Africa with a total value exceeding US $12 million.
About African Agricultural Capital Fund (AACF)
AACF was established in 2011 with commitments of $17 million in equity from the Bill & Melinda Gates Foundation, The Rockefeller Foundation, and the Gatsby Charitable Foundation. JP Morgan Social Finance has committed an additional $8 million in debt to the Fund with the support of a partial guarantee from USAID. USAID has also committed a further $1.5 million to the Fund in order to finance technical assistance to the Fund’s investees.
For further information, please contact Mike Kinuthia at firstname.lastname@example.org.