Private equity firm Fanisi Capital has invested $2.1m in European Foods Africa (EFA), a Nairobi-based pizza maker.

Tony Wainaina, Managing Partner at Fanisi Capital, said the deal was an affirmation of the increasing number of well-run local small-to-medium enterprises who are tapping into the East African region’s growing population and the rising economic prospects to create investment value.

”We are supporting a strong entrepreneur who has developed a good understanding of the evolving local consumer preferences over several years, and has identified a niche product whose demand continues to grow,” he said.

EFA is a Kenya medium-sized enterprise involved in the cold chain frozen foods distribution and value addition business.

The firm distributes its products, which include quality pizzas, whole berries and fresh berry beverages, to a wide client base that includes supermarkets, grocery stores and restaurants in Nairobi and Mombasa.

EFA said it will use the funds invested in form of debt and equity to support its growth strategy across the country and strengthen its operational systems and ensure stability.

The company is looking at expanding its business to the East African market.

With the combined population of the East African Community expected to hit 240 million people by 2019, EFA intends to leverage this opportunity by increasing its product offering and widening its regional customer base.

Stephan Belzer, EFA CEO, said: “Fanisi’s support and resources will drive the business to differentiate its brand through quality frozen product offering a stable and reliable cold chain system.”

Fanisi has already made significant inroads into the regional food processing sector to give it a strong footing in East Africa’s agriculture processing, retail and consumer space.

The private equity fund has invested in Ngare Narok Meat Industries, a meat processing and distribution/retail business in Kenya, and ProDev Group Holdings, a grain handling business (sourcing, drying, storing, trading, purchasing, milling and animal feed production) in Rwanda.

Fanisi Venture Capital Fund is a $50m fund which makes direct investments (private equity and venture capital) in businesses with potential for substantial growth.

Fanisi Capital was founded in 2009 by the Norwegian Investment Fund for Developing Countries (Norfund) and Amani Capital.