Private-equity group Fanisi Capital is investing US$2.1m in European Foods Africa Ltd (EFAL), a Kenyan food company.
Fanisi said the debt-and-equity deal will expand its involvement in east Africa's "vibrant food processing sector". The private-equity firm already holds investments in Kenyan meat group Ngare Narok Meat Industries Ltd and Rwandan grain firm ProDev Group Holdings.
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Announcing the deal, Fanisi highlighted the potential offered by the region's growing population and continuing economic development.
"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," Fanisi managing partner Tony Wainaina said.
EFAL is a frozen food supplier whose products include pizzas and berries. The company supplies supermarkets and restaurants in Nairobi and Mombasa.
EFAL will use the funds to support its growth strategy across Kenya. EFAL will "strengthen its operational systems and ensure stability" with the capital, Fanisi said. The food group plans to increase its product offering and widening its regional customer base.
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By GlobalDataCommenting on the group's plans for the cash, Stephan Belzer, EFAL's 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."
