Tuesday, November 21, 2017 UTC
News > Private Equity > Deals

AgDevCo and Nika invest in Citrum

Africa Global Funds
Sept. 5, 2017, 10:04 p.m.
270

Word count: 415

AgDevCo, a social impact investor and agribusiness project developer, has invested in Citrum SA to develop an export-focused banana operation owned and managed by a local team in Mozambique.

Receive ONE magazine and TWO locked articles of your choice for FREE when you register an account
Share:

AgDevCo, a social impact investor and agribusiness project developer, has invested in Citrum SA to develop an export-focused banana operation owned and managed by a local team in Mozambique.

AgDevCo is teaming up with Nika, a group of experienced Mozambican investors, to rehabilitate a banana plantation with the intention of increasing the hectarage and yields. 

Rui Sant’ana Afonso, AgDevCo Mozambique Country Director, said: “The Nika team has a successful track record and is dedicated to making this investment succeed. We are very excited to support and develop Citrum. We believe that it will become a flagship project and encourage more local investors into the commercial agriculture sector.”

Production will be sold in the local market as well as exported to South Africa. The farms are currently producing various citrus fruits, and the banana plantation will be rehabilitated to become the main focus of Citrum. 

In all, over 140 workers will be employed by the farm, and the company is committed to promote real gender equality at work with key positions being occupied by women, including that of general manager.

The funding from AgDevCo will finance capital expenditures, including irrigation, and operational costs related to the development plan. 

This investment will go a long way towards building one of the only Mozambican-run banana farms in the country. 

Nika have plans to create further agribusinesses and to foster local investments in the sector.

Carmen Ramos, Citrum General Manager, said: “I am very proud of working with this strong and experienced group of investors and with Citrum which has a long and known history in Mozambique. The farms have a good potential for agriculture and its fruits enjoy good market access and customer success in Maputo. I hope to contribute positively to this ambitious project, and so do the workers at Citrum who are also very enthusiastic.”

Arnaldo Ribeiro, Nika Director, said “I believe in the success of this investment because there is a growing market close to us, an experienced team managing the business and the two farms have very good growing conditions for bananas. Moreover, the Mozambican investors grouped in Nika and AgDevCo all have a sound experience in managing agribusinesses in Mozambique.”

The UK Government, through DFID, provides funding to AgDevCo, for investment in agricultural SMEs and new agribusiness ventures in Africa. 

This will benefit hundreds of thousands of people across the continent, including Zambia, with jobs and better incomes, linking farmers to markets and helping to increase food security.

Registration Login
Sign in with social account
or
Lost your Password?
Registration Login
Sign in with social account
or
Registration Login
Registration