Uganda: Sahel Capital provides funding of $1m to Sukuma Commodities
Sukuma Commodities specialises in the supply and processing of coffee for the European market.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
Sahel Capital has approved a $1 million term and working capital loan to Sukuma Commodities, a Ugandan-based enterprise specialising in the supply and processing of exportable green coffee for European traders and roasters. The financing was provided through Sahel’s Social Enterprise Fund for Agriculture in Africa (SEFAA) facility.
Sukuma sources Robusta and Arabica coffee from a network of 2,300 smallholder farmers, providing support through input financing and training on best production practices. Sukuma exports 100% of its coffee to a diverse portfolio of European off-takers, including Italy, the Netherlands, and Germany. This investment will enable Sukuma to scale its operations, increase coffee aggregation for processing, and expand its export capacity.
"Uganda, as the largest exporter and the second largest producer of coffee in Africa, offers a tremendous opportunity for impactful investment. We are excited to partner with Sukuma, one of Uganda’s leading coffee exporters in the country. Sukuma plays a crucial role in improving the livelihoods of over 2,300 smallholder farmers. Through this investment, which marks our first entry into Uganda, we expect the company to double its coffee sourcing, further empowering these farmers by enhancing their market access and increasing their income potential," stated Deji Adebusoye, a partner at Sahel Capital.
Fedrick Gubala, CEO of Sukuma Commodities added, "Partnering with SEFAA will significantly enhance our engagement with farmers by reducing payment cycles, thereby boosting their household and economic well-being."
Sahel Capital currently manages two funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which has investments in SME agribusinesses in Nigeria; and SEFAA, which provides debt to agribusiness SMEs across 13 countries in sub Saharan Africa. Sahel Capital is also raising capital for a successor fund – Sahel Capital Agribusiness Fund II, which will focus on investment opportunities across West Africa.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here