Uganda: TPG-backed dairy processor in line for IFC financing

The IFC has disclosed a proposed investment of up to $35 million as a senior loan package to Uganda’s Pearl Dairy. The investment will finance the company’s capacity expansion plans in Uganda and Kenya, which include upgrading and increasing the capacity of the powder milk plant in Uganda and acquiring a packing plant in Kenya. Furthermore, the funds will be used to refinance an existing Standard Chartered Bank loan in Uganda.

Founded in 2009 in Uganda, Pearl Dairy offers a diverse product portfolio, including UHT milk, powdered milk, flavoured milk, yogurts, butter, honey, and more. The company caters to the local market and most of East Africa. As of October 2022, the group employed approximately 1,226 individuals, both directly and through third parties; sourced milk from over 15,000 farmers across Uganda and Kenya; and distributed its products via 80 sales points in two operating countries, reaching retailers, wholesalers, and end consumers.

In 2019, TPG Rise Fund, an impact private equity fund managed by global asset manager TPG, became a shareholder alongside the founders.