TANZANIA – AgDevCo, the UK-based social impact investor in the Sub-Sahara Africa agricultural sector has issued a long-term debt investment to Pee Pee Tanzania Limited (PPTL), a regional leader in the production of grain storage bags.
PPTL having operations across Eastern and Southern Africa and owning rights to manufacture and distribute storage bags across the region, plans to expand its manufacturing capacity, including setting up a new dedicated factory for the production of grain storage bags with the acquired investment.
“We greatly look forward to working closely with the AgDevCo team to realise our goal of being able to reach out to millions of farmers across East & Sothern Africa with sustainable technology-based solutions for crop drying and storage,” said Suraj Devani, Executive Director at PPTL.
Founded in 1994 and based in Tanzania, PPTL employs over 750 people and with the new investment it is expected to create 300 new jobs.
According a press-release issued by AgDevCo, the storage bags were developed by the Purdue University in the USA.
They offer a simple and low-cost way of storing grain and seed without using chemicals to control insect pests. They are durable and can be stored in family homes helping reduce post-harvest losses and improve food security.
Chris Isaac, AgDevCo’s Chief Investment Officer, commenting on the investment stated, “We’re pleased to help PPTL bring to market a low-cost, practical solution for smallholder farmers in Tanzania, which will reduce food waste and improve food security.”
In Eastern and Southern Africa, post-harvest losses for grain are valued at US$1.6bn per year, or about 13.5% of the total value of grain production.
AgDevCo portfolio consists of over 40 active investments in production, processing and distribution companies.
Across Sub Sahara Africa, it has invested over US$170 million linking over 480,000 smallholder farmers to profitable markets and creating over 11,000 jobs.