Pearl Capital Partners in poultry deal
The Yield Uganda Investment Fund has announced the investment of UGX 6.79 billion ($1.8 million) in Sekajja Agro Farms (SAF), in a blend of equity and long term debt. This marks the fund’s tenth investment in the Ugandan agribusiness sector.
The Yield Fund is an agribusiness impact fund set up by the European Union (EU), through the International Fund for Agricultural Development (IFAD), the National Social Security Fund (NSSF), the Open Society Foundation (OSF) and FCA Investments. The fund is managed by Pearl Capital Partners.
SAF is a Kampala based company whose primary business is the rearing of day-old-chicks until maturity and the distribution of the mature birds as live birds and dressed chicken in the informal and formal markets, respectively. The business also operates a feed mill, an abattoir, a cold chain and branded retail outlets.
Yield Fund’s investment into SAF enables the execution of the company’s expansion plans which include scaling up its poultry production facilities and constructing a new feed mill to support the production scale up. The investment will also finance the expansion of SAF’s dressed chicken segment, covering the installation of a larger modern automated abattoir, cold chain facilities and spreading the footprint of SAF’s branded distribution outlets. Alongside the Yield Fund’s investment, SAF has been successful in obtaining a business development support (BDS) matching grant facility of up to $218,450 managed by IFAD to enhance both the technical and governance aspects of the business as well to ensure sustainable and prolonged growth and self-sustenance in the future.
David I Wangolo, investment manager at Pearl Capital Partners said, “This investment in the poultry value chain makes available much needed resources to the sector and agriculture in general, especially in a period where funding SMEs enterprises for growth has been constrained by a slowed down economy owing to the Covid-19 pandemic. The investment will go towards developing a modern poultry production and processing facility to serve a growing demand for high quality food in the Ugandan and East African markets.”
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