Africa Feed & Food Secures $90 Million Investment to Boost Agricultural Growth
The strategic investment will ensure the founding Essalehi family’s control over Africa Feed & Food.
Major Investment from Proparco and RMBV
Africa Feed & Food (AFF) has secured an impressive USD 90 million investment from France’s development finance institution, Proparco, along with North Africa-focused investment firm RMBV. This funding was announced on March 25, and marks a significant step for AFF as it aims to enhance its operations within the agriculture sector.
Maintaining Family Control
The investment has been structured as a capital increase, which allows AFF to avoid selling existing shares. This strategic move ensures that the controlling interest remains with the founding Essalehi family. Legal guidance on this transaction was offered by Asafo & Co, a prominent Africa-focused law firm, which played a vital role in facilitating this deal.
About Africa Feed & Food
Founded in 1978, AFF is a key player in handling various agricultural products, including grain imports, cereals, poultry, pasta, couscous, and flour production. In response to ongoing drought conditions, the company has been a crucial supplier of soft wheat and durum in Morocco. Moreover, AFF has adapted to a decreasing forage supply by providing animal feed and resources essential for poultry farming.
Expansion Plans Across West Africa
Proparco emphasized that their investment aims to support AFF’s upcoming growth phase, focusing on boosting Moroccan agricultural capacity, enhancing vertical integration, and expanding the company’s footprint in West Africa, particularly in Senegal and Mauritania. The investment will also introduce improved governance, transparency, and adherence to ESG standards.
Statements from Leadership
AFF Chairman and CEO Ahmed Chermati expressed his enthusiasm about the new partnerships, stating, “The acquisition of a stake in our company by RMBV and Proparco marks a major milestone in AFF’s development. This transaction not only brings financial resources but also connects us with leading partners sharing our vision of building a high-performing agro-industrial group committed to responsible and sustainable development.”
He further remarked that this strategic alliance would significantly help accelerate growth across Morocco, West Africa, and beyond, while also enhancing food security in the regions served by the company.
Legal Expertise in the Transaction
The legal advisory team from Asafo & Co was led by partner Patrick Larrivé in Casablanca, with significant contributions from senior associate Kamil Zizi in Paris and associate Shagufta Ashfaq based in Casablanca. Their expertise was integral to ensuring a smooth transaction.
Conclusion
This landmark investment reflects the growing importance of sustainable agricultural development in Africa, where companies like AFF play a vital role in securing food resources. The growth trajectory set by AFF, supported by Proparco and RMBV, will not only bolster its operations but also contribute to broader agricultural resilience in the region.
For related insights on investment in Africa’s agriculture sector, explore opportunities and trends in the region here.
