Pearl Capital Partners (PCP), a specialist agriculture investment firm, through their Yield Uganda Investment Fund, has announced its fifth investment in Uganda by making a commitment to invest UGX3.9bn to Raintree Farms.
Raintree describes itself as an agri-ceutical enterprise specialising in the production and processing of organic moringa.
Raintree Farms is based in Masindi, Uganda and was co-founded in 2012 by the CEO, Mr Teddy Ruge and the COO Ms. Pamela Nyakato. The company’s business operation is centred around the growing and processing of moringa, in order to produce premium, organically certified moringa leaf powder and moringa oil.
The products are sold to the nutritional, beauty and health markets both here in Uganda and internationally.
In order to satisfy the increasing market demand for moringa products, Raintree has undergone rapid change since it started its operations, not only through the development of its own farm but most notably through the introduction of an innovative secure income program (SIP) for new-to-market smallholder moringa farmers.
A program which is designed to stabilise incomes and reward farmers for their commitment and application in the growing of moringa.
Edward Matsiko Isingoma, PCP Managing Partner, said, “Raintree marks Yield Fund’s fifth investment; continuing the Fund’s strategy of investing in growth opportunities which have the potential to deliver transformational financial and social impact.”
“Raintree holds a strong position in Uganda’s agri-ceutical economy, being one of the key organically certified moringa producers in Uganda. This clearly gives the company a competitive edge as it continues to establish itself in this rapidly growing nutritional and health product sector,” he said.
“We are confident our investment will support the business on this journey and will bring about real change and sustainability for both the company and the large community of smallholder farmers in Masindi. One of the key facets of Yield Fund Uganda is to introduce social impact alongside our investment and we feel that this is really being achieved here,” he added.
Doing well and doing good for the community
Raintree, through Yield Fund’s investment is projected to support over 1,300 farmers throughout the course of its investment.
Irene Mwoyogwona: Beyond the Numbers – How Pride Bank's Award-Winning CFO Combines Profitability and Social ImpactOver the next three years, Yield Fund’s investment will support expansion in a new processing and storage facility as well as also providing automation, logistical and monitoring controls, all of which will drive the business forward as production and processing increases.
In tandem with Yield Fund’s investment, Raintree Farms has been successful in obtaining a Business Development Support (BDS) matching grant facility, managed by IFAD, to develop internal structures and practices as well as further develop the smallholder farmer community.
Teddy Ruge, founder and CEO of Raintree Farms, said, “Since our inception we’ve always had a belief that we could do well as a company while doing good in the community. We are very excited to partner with Yield Fund. The support will help us accelerate our growth and thereby the impact we can deliver alongside our success.”
Some moringa product by Kuli Kuli one of the leading moringa brands in the US and one of Raintree Farms’ buyers.
“On behalf of all our employees that keep us running, the farmers who provide us with quality raw materials, and the clients that trust us to deliver, we receive this investment with the greatest of gratitude. We look forward to continued growth and creating more opportunities for everyone in our community”.
Improving over 100,000 rural households’ livelihoods
The Yield Uganda Investment Fund is a partnership between public and private investors that offers innovative and tailored financial solutions, using equity, semi-equity and debt, to small and Medium-sized Enterprises (SMEs) having the potential to generate both strong financial returns and significant social impact. Deloitte Uganda and Pearl Capital Partners Uganda (PCP) established the Fund, currently managed by PCP Uganda, with the mandate to make investments in the range of €250,000 to €2 million (approx. UGX 1 billion to UGX 8.5 billion).
The agribusiness impact fund, set up in January 2017 by the European Union (EU), through the International Fund for Agricultural Development (IFAD) and the National Social Security Fund (NSSF), with an initial €12 million investment, in June this year received a €8 million (UGX34 billion boost) from new funding partners; Open Society Foundations (OSF) and FCA Investments (FCAI), bringing to €20 million (UGX 85 billion) mark in total commitments.
The Fund targets agriculture-related businesses across all value chains including supply of agricultural inputs, production and agro-processing within all sub-sectors, post-harvest storage and distribution, but also peripheral activities such as transportation, communications and certification.
The Fund seeks to support businesses with a clear competitive advantage and ambitious local management and targets to improve over 100,000 rural households livelihoods through improving access to; markets for their produce, higher quality agricultural inputs and services; creating jobs and employment opportunities, ensuring food security while generating income, foreign exchange and new export opportunities, all fundamentally contributing to Uganda’s economic growth and goal to eradicate poverty. Raintree joins other Ugandan business such as SESACO Limited, an agro-processing company specialising in soya products, CECOFA, a coffee processor, and Chemiphar, an analytical laboratory providing testing and inspection services to SME businesses that have previously received a UGX8 billion infusion from the fund.
