How We Made It in Africa
Many commentators have touted Africa as the future breadbasket of the world, which is plausible given the continent’s large areas of open arable land. Investors, too, are seeing the promise in the agriculture sector. Africa Private Equity News, an industry information service, reported a significant number of agribusiness and food-related investments throughout 2018, and the month of October was no different. Some of the most notable deals that took place are highlighted below.
South Africa’s Public Investment Corporation (PIC) – which manages more than R2tn (US$143bn) – together with empowerment group Pelo Agricultural Ventures announced the successful conclusion of the acquisition of a majority shareholding in Karan Beef for a maximum consideration of up to R5.2bn ($372m). Karan Beef operates the largest cattle feedlot and abattoir on the continent.
Furthermore, the private equity division of Imara Holdings Limitedinvested in a Zambia-based blueberry producer. Over the past 12 months – on behalf of a European family office client – Imara sourced, structured and invested about $4.5m into Zambezi Berry Company (ZBC), which plans to expand up to 500 hectares and become one of the largest stand-alone blueberry orchards in Southern Africa.