UGANDA – Kamp Group Limited, Uganda based animal feed processing, marketing, and distribution company, has received a blended equity and debt funding totalling US$2.6m from Yield Uganda Investment Fund and Gorm Pedersen 2 Holding ApS, a Danish investor.
Incorporated in 2013 and trading as Kamp Feed, the company specializes in the production, marketing, and distribution of quality pelleted animal feeds that are sold on to smallholder farmers through agents across Uganda.
The investment aims to provide the feed processor with long-term patient capital to execute its comprehensive and integrated growth and expansion strategy.
The proposed strategy will aid to address the challenges of sourcing raw materials, establishing a new factory line and warehouse, and purchasing larger capacity automated milling equipment.
“The Yield Fund Investment has indeed come very timely to develop the business further and as a very vital vehicle to spur sustainable economic empowerment and growth to the people of Northern Uganda and the agribusiness sector across the country.
“I am very proud of this milestone and look forward to a very bright future for the livestock sector in Uganda,” said Gorm Pedersen, Promoter/CEO Kamp Group and Gorm Pedersen 2 Holding ApS.
In addition to the funding, Kamp Feed also obtained a Business Development Support (BDS) matching grant facility of up to USD 195,500 managed by IFAD to enhance the business operations and increase the network of soybean and maize smallholder farmers in northern Uganda who supply grain raw material to the company.
The smallholder farmers will be trained on good agronomic and crop handling practices to boost their yields and reduce harvest and postharvest losses.
Yield Fund set up by the European Union (EU), through the International Fund for Agricultural Development (IFAD) and the National Social Security Fund (NSSF) is managed by Pearl Capital Partners.
According to Dr. Edward Isingoma, Managing Partner-Pearl Capital Partners (PCP) the investment remedies the challenges of access to quality feed by small, medium, and some large-scale commercial animal farmers in Uganda by catalysing local innovation and production technologies in the animal feed value chain leading to increased local production and reliable supply of high-quality affordable feed in the market.
Lakshmi Moola, the IFAD Country Director said, “Through this investment, Kamp Group Limited will expand its factory line and open a new warehouse facility that will provide a reliable market to small-scale farmers growing maize and soybean in the Acholi sub-region.
“With the additional Business Development Services matching grant received, the company will create a produce buying network of over 3,000 small-scale farmers in the region.”
The co-investment arrangement marks Yield Funds’ thirteenth investment in the Ugandan SME agribusiness sector.
Recently the fund invested US$515,000 in Enimiro, a Ugandan farming platform that connects small-scale farmers to markets.
Incorporated in 2019, Enimiro is a vertical supply chain management business connecting the small holder farmers to the international buying community for three organic products; vanilla, arabica coffee and dried pineapple, with vanilla as the anchor product.
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