Ethiopian edible oils company Turaco secures US$22m growth capital

ETHIOPIA – French development financial institution Proparco and Ethos Mezzanine Partners have announced a US$22 million investment into Turaco, an Ethiopian FMCG holding company managed by 54 Capital PE Advisors.

Turaco manufactures and sells edible sunflower and soya oil under the brand name Tena, alongside other personal care products. 

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The growth capital raised will fund the expansion of Turaco’s manufacturing operations, carried on by Health Care Food Manufacturers SC and ZAK Ethiopia Manufacturing & Trading Plc.

Some of the capital will be applied to upgrading these facilities to meet IFC performance standards relating to Environmental, Health, Safety and Governance.

“We are extremely proud of how our companies have matured to become manufacturers of the leading brands in Ethiopia in their respective sectors, as well as the tremendous growth rates that have been achieved so far,” said 54 Capital PE Advisors’ Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad.

“It is our vision to improve the lives and livelihood of the communities we serve, by providing world class products and services for current and future generations, and we look forward to delivering that vision with our new financing partners,” he added.

Turaco has embarked on a bold expansion strategy, materially increasing the capacity and effectiveness of its subsidiaries’ production facilities, as well as expanding their range of product offerings, to meet growing demand for its market-leading brands in Ethiopia.

“We are very excited to invest in Turaco’s Ethiopian FMCG manufacturing business. The growth prospects for the business, and the chance to invest in this management team, alongside 54 Capital and Proparco, offers us a unique opportunity to support economic growth, development and job creation in the Ethiopian private sector,” Phillip Myburgh, Managing Partner at Ethos Mezzanine Partners said. 

Being Proparco’s first mezzanine transaction in Ethiopia, Geoffrey Coombs, Senior Investment Officer at Proparco said “Investing in the development of emerging states such as Ethiopia is a key strategic priority for Proparco, and we are proud to support Turaco in its expansion.

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“Turaco’s ambitious growth strategy will support job creation, the development of local agribusiness, import substitution and economic growth in the country,” he added.

According to a press-release by Proparco, the deal was structured and arranged by African Alpha Investment Partners.

Brad Koen, Co-founder and Director of African Alpha Investment Partners, and board member of Turaco applauded Ethos and Proparco for undertaking the transaction during a time when there is an on-going global COVID-19 pandemic.

“We are excited to see 54 Capital and its portfolio of Ethiopian companies, now receiving the support it deserves from large leading institutional investors such as Ethos Mezzanine Partners and Proparco. It will undoubtedly help to propel Turaco on to even greater heights,” said Brad.

“And we salute the management of Turaco’s operations in Ethiopia for establishing market-leading manufacturing infrastructure, business processes and systems that have delivered quality and affordable locally manufactured products to Ethiopians throughout the COVID-19 crisis,” he stated. 

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