KENYA – Kenyan macadamia nut processor and exporter Privamnuts has secured a KES387 million (US$3 million) investment to enhance its production capacity.
The funding, obtained from the ESG First Fund, a partnership between Aavishkaar Capital and the German state-owned investment and development bank (KfW), will also support the company’s sustainability initiatives.
The ESG First Fund, with a focus on Africa and Asia, is a US$250 million fund that seeks to generate both superior Environmental, Social, and Governance (ESG) outcomes and commercial returns, while delivering positive social impact.
Privamnuts, a major player in Kenya’s macadamia industry, exports to Europe, the USA, and the Far East.
Privamnuts works with approximately 10,000 smallholder farmers, maintaining a strong relationship by offering input support, training on good agricultural practices, and ensuring timely payments.
These initiatives have helped build a loyal and consistent supply base, ensuring the company’s steady growth and success.
Patrick Mbogo, founder and Managing Director of Privamnuts, highlighted the company’s resilience during challenging market conditions, including the COVID-19 pandemic and a period of record-low global macadamia prices in 2023.
“We are excited to be partnering with Aavishkaar Capital, with whom our goals are aligned. Privamnuts and Aavishkaar Capital believe in creating high-quality jobs that can improve the economic and social well-being of farmers and workers, uplifting communities while delivering high-quality agricultural and food products to global customers,” Mbogo said.
Kenya is the world’s third-largest exporter of macadamia nuts, benefiting from favorable agro-climatic conditions in key growing areas.
This year has brought a significant boost to macadamia farmers, with a threefold increase in prices. Farmers are now receiving between US$0.69 and US$0.9 per kilogram of macadamia nuts, a substantial rise from last year’s US$0.21 per kilogram.
The price surge followed the suspension of Section 43 of the AFA Act in November 2023, which had previously banned the export of in-shell macadamia nuts.
However, the MACNUT Association, representing Kenyan macadamia processors, recently called on the government to restrict the direct export of raw, unprocessed nuts.
The association warned that this practice has led to financial losses for local processors, reduced farmer incomes, and widespread job losses in the sector.
In the first half of 2024, Kenya’s macadamia kernel exports were valued at KES3.3 billion (US$25.63M), significantly lower than previous years, when exports reached KES6.9 billion (US$53.59M).
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