Dubai-based private equity firm The Abraaj Group has announced the acquisition of a majority stake in South African food company Liberty Star Consumer Holdings. The purchase by Abraaj which manages US$7.5 billion in assets, supports the firm’s plan to expand in sub-Saharan markets where South Africa’s grocery retail market is forecast to grow at an average rate of 7% per year, and the country’s food services market is estimated to grow at an average of 9.5% annually to 2018. Due to increases in household incomes and shifts in consumer preferences, the potential for growth for the African food sector is significant. Based on these trends Abraaj has been expanding its interests in the continent. In 2013 in partnership with France’s Danone, Abraaj purchased West African dairy company Fan Milk International and also acquired a stake in a mortgage firm in Ghana.
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