Pearl Capital Partners invests US$ 1,500,000 in KK Fresh Produce Exporters Limited (“KK Foods”)
Pearl Capital Partners has made its fifth investment through the African Agricultural Capital Fund. The fund, which is now two years into its investment phase, has investment commitments of $25 million and aims to invest in 15-20 East African businesses operating in the agriculture sector within the next 3-4 years. Pearl has invested $1.5 million in the Uganda-based company KK Foods to acquire a substantial minority stake in the business.
KK Foods (www.kkfoods.co) is a major exporter of fresh vegetables and fruits to the European market. Its main products are fresh chillies, hot pepper, bananas, okra, egg plants and ground nuts. It sources produce from thousands of smallholder farmers in Central and Western Uganda.
Speaking from Pearl’s office in Kampala, Uganda, Mike Kinuthia, investment manager responsible for this transaction commented: We are excited to have made this investment in KK Foods. This business is pioneering the export of fresh produce to the European market from Uganda, for the benefit of the business and its base of Ugandan smallholder farmers. Our investment will build momentum in the company’s growth while enhancing the transformation of Uganda’s agricultural export sector. ”
Pearl’s investment is designed to provide KK Foods with medium-term capital to expand its cold chain facilities and support volume growth. KK Foods’ founder and CEO, James Kanyije said “Being a family- owned and managed business, it has not been easy for us to obtain long term finance to expand the business. With Pearl’s capital injection, we fully expect to multiply the supply of Ugandan fresh fruits and vegetables to the European market, significantly boosting profitability and continue sourcing produce from a larger number of Ugandan smallholder farmers”