GHANA – Maphlix Trust Ghana Limited, a leading producer and exporter of fresh vegetables, roots, tubers, and fruits in Ghana, has clinched a US$700,000 long-term loan from ACDI/VOCA’s financing arm AV Ventures.
ACDI/VOCA is U.S. Government’s implementing partner and responds to non-USG official development assistance (ODA) and host country government opportunities, to foster broad-based economic growth, raise living standards, and create vibrant communities.
The financing will enable Maphlix acquire new farming equipment that will mechanize production activities, as part of efforts to modernize production for enhanced operational efficiencies.
It will also support the expansion and automation of its irrigation infrastructure, increasing Maphlix’s production capacity and ensure consistent product volumes and quality, which are key for retaining buyers in the horticulture sector.
“The funding from AV Ventures will enable Maphlix to optimize its production capacity to respond to growing demand for its products, both locally and on the export markets, to drive its long-term growth and commercial success.”
Zubeiru Salifu – Senior Investment Manager, AV Ventures
The company founded in 2013 sources produce from its own farms and from a network of nearly 200 smallholder farmers in the Volta Region of Ghana, comprised of 30 percent women.
With the investment, Maphlix will more than triple the volume of produce sourced from its out grower network and enhance its cold chain system to support the transportation of fresh produce to key distribution outlets.
This will reduce post-harvest losses and extend the shelf life and quality of produce.
“The AV Ventures loan is timely because we are looking to expand our production capacity so as to build a sustainable raw material base for processing in the near future.
“We believe this funding and partnership with AV Ventures will go a long way to bring sustained growth to Maphlix Trust Ghana Limited and the outgrowers with whom we work with,” said Felix Kamassah, Founder & Managing Director of Maphlix Trust Ghana Limited.
The expansion in production capacity will enable Maphlix to secure additional sales contracts with foreign-based customers, resulting in increased export earnings and import substitution of horticultural products in Ghana.
This will contribute to strengthening of the local currency and building successful export businesses in line with the export-led growth strategy of the government of Ghana.
“We are excited about the partnership with Maphlix because of the strong operational experience and track record of the management team and the significant untapped market opportunities we see in the horticulture sector in Ghana.
“The funding from AV Ventures will enable Maphlix to optimize its production capacity to respond to growing demand for its products, both locally and on the export markets, to drive its long-term growth and commercial success,” said Zubeiru Salifu, Senior Investment Manager, AV Ventures.
The revenue-based structure of the AV Ventures loan shares risk with Maphlix and provides a flexible financing structure to support its growth and expansion needs.
This type of investment product aligns with AV Ventures’ long-term strategy of providing innovative and catalytic capital to support growth-oriented small- and medium-sized enterprises.
These enterprises make up the “missing middle” of investment, as they are often too large to receive microfinancing but too small to attract traditional investors.
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