Private equity firm, Fanisi Capital, has acquired a stake in Tanzanian agro-processor, Kijenge Animal Products, at $6 million adding to a growing list of East African firms in which it has interests.
The fund said it had acquired a “significant minority” of about 40 per cent in the Arusha based agro-processor, a first such deal in Tanzania. Kijenge deals in maize milling, animal feed production and poultry (broiler) farming and processing.
The fund’s managing partner, Tony Wainaina hailed the deal saying it presented a huge growth opportunity for both firms in the Tanzanian market.
“We are supporting a company with a long history and a good brand name in the Tanzania market. This deal marks our first transaction in Tanzania and is in line with our sectoral focus areas of agribusiness in the East African region,” Mr Wainaina said in a statement.
He said Fanisi would play a primary role in Kijenge’s next growth phase following the investment in the agro-processor.
“We felt that Fanisi was the right partner for us as it shared the Kijenge vision and their approach to investing goes beyond the provision of capital. This partnership provides us with growth capital which will enable us to diversify our product offering and further support our customers’ needs,” Kijenge’s founder and chairman Andrew Mollel said in a statement.
HALTONS Investments in which Fanisi, a $50 million venture capital fund, has interests in now stand at eight firms dealing in agribusiness, education, fast moving consumer (goods FMCG) and healthcare across Kenya, Rwanda and Tanzania.
They include Haltons, a retail pharmacy chain operating over 30 outlets in Nairobi, Ngare Narok Meat Industries, a processor and distributor of quality meat products in Kenya, Hillcrest International Schools, and a group of learning institutions offering the British curriculum.
It also has interests in Prodev Group, a Rwanda-based maize milling and commodity trading firm, Sophar, a pharmaceutical wholesaler and distributor also based in Rwanda, Live Ad, an outdoor advertising firm based in Kenya and European Foods Africa, a cold chain frozen foods distributor dealing in pizza, berries and fresh juices in Kenya.
The number of private equity deals in Kenya have been on the rise in recent year. Recently, the Maarifa Education provided Sh1.7 billion ($17.5 million) to KCA University to support the institution’s expansion activities.
The university also signed a partnership with Emerging Capital Partners (ECP), a private equity firm to offer financial, strategic and operational support to the local institution.
“Going forward, private equity investment will continue to be targeted at FMCG, infrastructure and energy sectors. Sub-Saharan Africa will remain the focus of PE investors as they continue to look outside the relatively mature market of South Africa,” said Standard Investment Bank (SIB) analysts. Source: Nation