Sesaco Soya, a Ugandan processing firm has been named as the first beneficiary of the EU Yield Uganda Investment Fund to improve its production in preparation for expansion and business growth.
The Fund, set up with support from the EU and managed by Pearl Capital Partners, will, in its maiden investment in Uganda commit Shs1.6b to Sesaco to enhance technical and governance aspects of the business.
Mr Attilio Pacifici, the EU head of delegation to Uganda, said the Fund was a result of continued efforts and commitment from the EU to support the agribusiness sector by lowering the cost and risk of investment.”
Sesaco, a family-owned company located in Kyengera Town, near Kampala, processes, and packages and sells several high-protein soy products, including soy cup soy maize and millet flours which have various nutritional benefits.
Mr Charles Nsubuga, the Sesaco founder and chief executive officer, said they were looking forward to an interesting relationship with Pearl Capital Partners which has considerable experience in investing in agribusinesses.
The Fund was launched in January 2017 with a commitment of €12m (Shs54b).
The EU, through the International Fund for Agricultural Development committed €10m (Shs45b) while €2m (Shs9b) was committed by National Social Security Fund Uganda.
The Fund offers innovative financial products such as equity, semi-equity and debt funding.
In accessing long-term capital needed for the modernization and expansion, Sesaco is expected to create jobs and contribute to Uganda’s economic growth.
The company will use the money to expand its network of smallholder to improve nutrition offering in the country.
IFAD is keen to support SMEs such Sesaco that impact proposition and clear linkages and markets to the smallholder farmers of Uganda”.
Dr Edward Isingoma Matsiko, the PCP Partner responsible for the transaction said Sesaco was a story of hard work, commitment and passion.
“With this investment, we believe the company will be able to modernize its operations and increase efficiency,” he said.
Sesaco is expected to grow its capacity as a way of fast tracking expansion which will in the end result into job creation.