By Gerelyn Terzo, Global AgInvesting Media
Impact investor AgDevCo, which specializes in Africa’s ag sector, has exited one of its farming assets. The firm has announced the sale of Saise Farming Enterprises to Zambian potato giant Buya Bamba. Formed in 2016, Saise was created as a specialized potato seed farm between partners AgDevCo, Buya Bamba and managing partners. Saise has been a driving force in developing Zambia’s potato sector through the production of what the company describes as superior early-generation seed potatoes for table and processing potatoes.
AgDevCo reached a successful closing of its $85 million fund raise last year and said it remains committed to supporting agri-businesses in Zambia and across Sub-Saharan Africa, where it is actively seeking investment opportunities in sustainable farming and agri-processing ventures. Saise is one of a few commercial farms in the Northern Province, where poverty runs rampant.
Over a decade ago, AgDevCo set the wheels in motion for this deal with its $4.5 million investment into seed potato production project in the northern province of Zambia with partner Saise Farming. This asset has served as a potato production hub and an anchor investment for AgDevCo in the region. The firm set out to modernize the ag supply chain through the integration of irrigation systems and climate-controlled facilities for crop storage prior to product distribution to farmers in the nearest season.
The Saise operation boasts 285 hectares (704 acres) under irrigation across Mbala, Northern Zambia through which it reaches a network of growers comprising a major portion of the country’s potato farmers. This project has been key in improving seed access, bolstering crop yields and ensuring a dependable local source of high-quality potato seed for Zambia.
More than three-quarters of Zambia’s grain production comes from low-yield smallholder farmers who are able to produce from nutrient-rich soil and plenty of groundwater. But they have limited access to critical inputs, financing and crop storage, which has thwarted the industry’s growth potential. Buya Bamba started as a provider to the local market in the late 1990s and has since become a major contributor to the diversification of Zambia’s ag industry.
AgDevCo South Region Managing Director Sean Carey stated, “Saise is in excellent hands with Buya Bamba, our partner in the venture from the start and are grateful for the commitment from our managing partners to build Saise into what it is today. As a proudly Zambian company, Buya Bamba is well-positioned to continue growing Zambia’s potato industry.”
Buya Bamba Managing Director Anthony Barker said, “The future of Zambia’s potato industry is bright and this acquisition further strengthens the Zambian potato value chain. Buya Bamba appreciates the effort from AgDevCo to jointly lead the development of Saise, and take the early stage investment risk of this successful greenfield project.”
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