Fanisi Capital has acquired a significant minority stake in Kijenge, a Tanzanian agro-processing company, for $6m.

“The backing by Fanisi, will enable Kijenge Limited to upgrade its current production infrastructure and introducing new production lines,” Fanisi said.

The deal is the Fund’s first investment in Tanzania.

Kijenge is a diversified agro-processing company based in Arusha, Tanzania engaged in maize milling, animal feed production and poultry (broiler) farming and processing.

The company is in the process of building a foundation for its next growth phase that will see it grow and diversify its revenues by upgrading its current production infrastructure and by introducing new production lines.

“Fanisi will play an integral role in the company’s next growth phase and will provide growth capital for a significant minority stake in Kijenge,” Fanisi said in a statement.

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

The Fund focuses on a segment of the market that has to date been outside the ambit of most venture capital funds in the East African market (Kenya, Tanzania, Rwanda and Uganda).

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