MADAGASCAR – Malagasy agro-food processor, Soafiary has clinched an investment from impact investment group, I&P through its I&P Afrique Entrepreneurs 2 (IPAE 2) fund, to enable it pursue its development strategy.
IPAE 2 is pursuing an active pace of investment, targeting start-ups and SMEs in the development phase in sub-Saharan Africa, requiring financing of up to €3 million (US$3.5m).
Founded in 2006 by the Malagasy promoter Malala Rabenoro, Soafiary specializes in the sourcing, processing and commercialization of cereals (maize, rice) and leguminous plants (beans, cape peas, lentils, soybeans) for local and international markets.
In 2017 the company diversified its activities and currently operates a feed mill unit and has also launched the Soadio project, a contract farming project run in collaboration with the diocese of the Vakinankaratra region, located in the highlands of Madagascar.
Through the project, Soafiary trains the farmers and provides them with the agricultural equipment and inputs needed to operate the 4,100 hectares of land owned by the Diocese, and then buys the entire produce.
This project is a response to the challenges of traceability and product quality, indicated I&P in a press-statement.
In the new investment, the Soadio project is one of the strategic axes of the partnership between the two companies.
“At this point, Soafiary needed a strategic partner to keep moving forward. One of the keys to success is identifying a good partner, one that shares your strategic vision and works cooperatively with you to achieve your goal.
“Soafiary has found in IPAE 2 an ideal partner. Beyond the economic aspect, IPAE2 also focuses on social issues,” said Malala Rabenoro, founder and director of Soafiary.
Soafiary is the first investment of the fund I&P Afrique Entrepreneurs 2 in Madagascar, a country where I&P has been operating since 2008 and now counts eight companies in its portfolio, including food processor Scrimad.
“Malala is a passionate and motivated entrepreneur. It is a very motivating partnership, which allows us to support a committed promoter and her entire team, making it possible for them to have a greater impact in this region where the literacy rate is extremely low,” said Mialy Ranaivoson, Investment Manager.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE