Yield Uganda Investment Fund backs organic farming company
Yield Uganda Investment Fund and FCA Investments (FCAI) have announced a €1.3 million investment in AMFRI Farms.
AMFRI Farms is a pioneering organic farming, processing and exporting company working closely with diverse communities all over Uganda, in training and production of certified organic fruits and vegetables, processed for the export market.
AMFRI Farms started its journey in Luwero in 1998, at the company’s Kyampisi Estate. The company is a recipient of top organic food exporter awards and quite notably obtained and maintained certifications to export products to organic markets in the EU, USA and the Middle East.
The investment aims at providing long-term capital to AMFRI Farms to enable its expansion of production both at the nucleus estate and among the network of certified smallholder farmers, increase the processing capacity and access to a wider organic food market that is underserved.
As part of this investment, the International Fund for Agriculture (IFAD) has made available a Business Development Support (BDS) grant, that will among other interventions, notably improve business operations and increase the network of smallholder farmers working with the company. The farmers are required to go through rigorous training in organic farming practices, as the requirements of organic markets insist on traceability.
Edward Isingoma, managing partner, Pearl Capital Partners (PCP) said, “AMFRI Farms is a unique company in the Yield Fund’s portfolio of companies. The business practices promoted by AMFRI Farms to grow the production and marketing of certified organic products, in Uganda, create a strong value proposition for Uganda’s agriculture, especially the network of the smallholder farmers that supply the company. AMFRI Farms goes through a painstaking exercise to ensure that there is complete traceability for its exports, right down to the trained farmers. This is the ethos of the Yield Fund and a great example of how to modernise Uganda’s agriculture.”
Emmanuel Obwori, chief operating officer, FCAI said, “To FCAI the investment in AMFRI farms represents a unique value proposition with its disproportionately large impact footprint. AMFRI represents the potential future of Uganda’s agricultural value addition and we are proud to be part of this future. In these dark and uncertain times with a global pandemic, Uganda’s reeling national economy and the general tightening of credit, we are keen to signal that Uganda remains open for business and is still an attractive investment destination notwithstanding the short-term Covid-19 related shocks.”
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.