AgDevCo Ventures invested US$3 million in Newman Foods Limited, a Ugandan agro-processor. The funding is a mezzanine loan. Newman's turns locally grown crops into value-added foods and packs fresh fruits and vegetables.
Funding details
AgDevCo Ventures is the early-stage investment arm of African agriculture investor AgDevCo. It provides capital and expert support to high-potential agri-SMEs across East Africa. The unit is backed by first-loss capital and concessional funding from development partners.
Company reach
Newman's sources raw materials from over 3,000 smallholder farmers across Uganda. It supplies thousands of formal and informal retailers. Managing Director Ssegujja Nasser leads the locally owned business.
Planned expansion
The new funding will expand the company's processing capacity. Newman's also plans to broaden its range of nutritious foods. It expects to bring more smallholder farmers into its supply chain.
ENS Uganda provided legal support to AgDevCo Ventures. BNM Advocates provided legal support to Newman's. The company plans to increase farmer purchases and put more Ugandan-made snacks on the market.