Zimbabwe: Spear Capital invests in logistics company
Private equity firm Spear Capital has completed its investment into FML Logistics Private Limited, a Zimbabwean-registered company focused on the transportation of petroleum products in sub-Saharan Africa. Spear Capital has made the investment to buy out current shareholders and to meet the need for replenishing FML’s trucking fleet.
In sub-Saharan Africa, road-based fuel transportation is critical, especially as large parts of the region aren’t served by pipeline or rail infrastructure. According to Spear Capital, the bulk fuel logistics sector is characterised by high margins and high growth, and the Southern African Development Community (SADC) region is projected to sustain some of the highest economic growth rates in the world in the coming decade, making the case for investing in FML clear. With the investment, FML will grow its current fleet and ensure it is maintained at optimal levels to service the known market opportunity as well as its existing contracts.
“This is an exciting investment for Spear. FML is a company that provides a secure entry into the sector at a time when Sub-Saharan Africa is gearing up for an incredibly promising economic growth period,” says Shaw Mabuto, partner at Spear Capital.
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