Uganda: Pearl Capital Partners in animal feed deal
The Yield Uganda Investment Fund, managed by Pearl Capital Partners, announced a US$2.6 million (UGX 9.5 billion) aggregate investment in Kamp Group Limited. This blended equity and debt funding was raised through a co-investment arrangement between Yield Uganda and Gorm Pedersen 2 Holding ApS, a Danish investor. This marks the fund’s thirteenth investment in the Ugandan SME agribusiness sector.
Kamp Group Limited, incorporated in 2013, is an animal feed processing, marketing, and distribution company with a feed mill in Northern Uganda’s Anaka Town Council, Nwoya District, and a distribution centre in Kisaasi, Kampala District. The company trades as Kamp Feed and specialises in the production, marketing, and distribution of pelleted animal feeds that are sold on to smallholder farmers through agents across Uganda.
The investment aims to provide Kamp Feed with long-term patient capital to execute the company’s comprehensive and integrated growth and expansion strategy. The proposed strategy will aid to address the challenges of sourcing raw materials, establishing a new factory line and warehouse, and purchasing larger capacity automated milling equipment. In addition to the Yield Fund investments, Kamp Feed also obtained a Business Development Support (BDS) matching grant facility of up to $195,500 managed by IFAD to enhance the business operations and increase the network of soya bean and maize smallholder farmers in northern Uganda who supply grain raw material to the company. The smallholder farmers will be trained on good agronomic and crop handling practices to boost their yields and reduce harvest and post-harvest losses.
Gorm Pedersen, CEO of Kamp Group and Gorm Pedersen 2 Holding ApS said, “The Yield Fund investment has indeed come very timely to develop the business further and as a very vital vehicle to spur sustainable economic empowerment and growth to the people of Northern Uganda and the agribusiness sector across the country. I am very proud of this milestone and look forward to a very bright future for the livestock sector in Uganda.”
Dr. Edward Isingoma, managing partner of Pearl Capital Partners said, “This investment remedies the challenges of access to quality feed by small, medium, and some large-scale commercial animal farmers in Uganda by catalysing local innovation and production technologies in the animal feed value chain leading to increased local production and reliable supply of high-quality affordable feed in the market. Through this investment, we are supporting Kamp Group with access to much-needed agri-SME patient capital, structured to meet their medium to long-term growth needs while involving smallholder farmers and local communities of Nwoya district where their production facilities are set up.”
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