Africa-focused private equity manager EXEO Capital has backed Zambian fish distributor Capital Fisheries with a $6.4m investment.
The cold-chain distributor is the latest deal from EXEO’s Agri-Vie Fund II, which is understood to be out targeting up to $200m for a hard cap close.
The firm had collected about $175m for the fund in July last year, AltAssets revealed, well above its $100m first close from February 2017.
EXEO partner Kennett Sinclair said the decision to invest in Capital Fisheries was driven by the market prospects for the line of business in Zambia and the company’s proven business model.
Mr. Sinclair said more than half of the animal protein consumed in Zambia consists of fish.
Capital Fisheries sells fish, sustainably harvested in Zambia, Zimbabwe and Namibia, and more recently has added smoked fish as well as different cuts of Zambian beef and sausages.
Sinclair said, “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’ Zambian founding shareholders Damian Roberts and Gavin Thomas, stated that consumer spending was expected to accelerate the company’s current growth.
They said, “Zambia’s population is forecast to grow at 2.8 per cent per annum to 2030, with an urbanisation rate of 4.8 per cent per annum. We plan to double our wholesale depots and the supporting cold-chain logistics over the next two years.”
Mr Sinclair echoed this sentiment, adding that Zambia’s GDP per capita was forecast to increase by 2.1 per cent per annum to 2030.
“You have all the ingredients necessary for excellent further growth prospects for this company,” he said.