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AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Deals

Agri-Vie Fund II invests in Capital Fisheries

Anna Lyudvig
May 21, 2018, 5:21 p.m.
838

Word count: 499

EXEO Capital has invested $6.4m into Capital Fisheries, a Zambian food distributor that specialises in the cold-chain distribution of animal proteins. 

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EXEO Capital has invested $6.4m into Capital Fisheries, a Zambian food distributor that specialises in the cold-chain distribution of animal proteins. 

Concluded at the end of April 2018, the investment was made by EXEO Capital’s Agri-Vie Fund II – a private equity fund focused on food and agribusiness investments in Sub-Saharan Africa.

Kennett Sinclair, Partner at EXEO Capital, said that the decision to invest in Capital Fisheries was driven by the market prospects for this line of business in Zambia and the proven business model of Capital Fisheries.

He said more than half of the animal protein consumed in Zambia consists of fish: “Capital Fisheries already has a large market share in fish distribution in Zambia. The company’s innovative model of wholesaling frozen products from reconfigured, refrigerated shipping containers placed permanently at markets, small shopping centres and areas where people congregate, has been tremendously successful.”

Capital Fisheries sells fish, sustainably harvested in Zambia, Zimbabwe and Namibia, mainly tilapia or bream and horse mackerel. 

More recently, it added smoked fish, as well as different cuts of Zambian beef and sausages produced from locally sourced fresh meat as well as certain imported products. 

The value-added products are processed in a modern fish and meat plant in Lusaka.

Capital Fisheries’ Zambian founding shareholders, Damian Roberts and Gavin Thomas, said that consumer spending is expected to accelerate the company’s current growth. 

“Zambia’s population is forecast to grow at 2.8% per annum to 2030, with an urbanisation rate of 4.8% per annum. We plan to double our wholesale depots and the supporting cold-chain logistics over the next two years.”

Sinclair added that Zambia’s GDP per capita is forecast to increase by 2.1% per annum to 2030.

“You have all the ingredients necessary for excellent further growth prospects for this company,” he said.

Roberts and Thomas said that Capital Fisheries looks forward to the business acumen and management to international standards that will be provided by Agri-Vie. 

“We want to position our company as a business leader in sustainable corporate practices in Zambia in terms of governance, reporting and transparency, and in environmental and social management.”

Ellora Ghosh, Investment Associate at EXEO Capital, said that Agri-Vie’s policy is to bring about environmental and, especially, social benefits, whilst achieving a good return on investment. 

“Approximately 3 000 female micro-entrepreneurs purchase wholesale from Capital Fisheries depots across the country and sell the products at informal markets. The company also purchases some of its locally caught fish directly from local women who have been trained in food hygiene and are supplied with packaging materials. We are working with Capital Fisheries to provide further support to these micro-entrepreneurs – a recognised way to bring about socio-economic benefits with a substantial multiplier effect.”

Lastly, Sinclair said that they are confident that this investment will build on EXEO’s previous investments in food and agribusiness in Sub-Saharan Africa via their Agri-Vie Fund I, and on the successful exits that were made over the past two years.

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