Pearl Dairy Farms, a prominent East African dairy processor, has successfully secured $35 million in debt financing aimed at bolstering its expansion efforts across the region. This financing deal, orchestrated by advisory firm Delphos, involves the International Finance Corporation (IFC) and FMO, the Dutch entrepreneurial development bank.
The funds will primarily be allocated to upgrading and enhancing capacity at Pearl Dairy’s powdered milk plant in Uganda, as well as acquiring a packaging facility in Kenya. This expansion is poised to significantly impact the dairy value chain in both countries.
To support local farmers, Pearl Dairy plans to implement a comprehensive Dairy Development Program in collaboration with the IFC, which is expected to benefit over 15,000 farmers. The program will focus on training farmers in best practices and providing access to critical data, ultimately boosting their productivity and profitability.
Amit Sagar, CEO of Pearl Dairy Farms, hailed the financing as “an important milestone,” reaffirming the company’s dedication to driving growth and excellence within the dairy sector.
The deal underscores the vital role agriculture plays in Uganda’s economy, where it employs approximately 72% of the population and contributes about 24.1% to the GDP. The dairy sector alone is valued at $3.8 billion, with annual exports generating $106.2 million.
Bart Turtelboom, Chairman and CEO of Delphos, highlighted the potential for inclusive growth, stating that “investment in modernizing the dairy value chain creates significant economic returns for the community and the country as a whole.”
This transaction also aligns with broader efforts to enhance food security in the region. By increasing access to dairy products and fortifying the supply chain, the expansion is expected to help the sector withstand macroeconomic shocks more effectively.
The financing of Pearl Dairy Farms marks a continuation of Delphos’ active involvement in African agriculture. Over the past 37 years, the firm has raised over $4.7 billion for various transactions across the continent, contributing to the United Nations’ Sustainable Development Goal 2, which aims to eradicate hunger and achieve food security.
As the dairy sector in East Africa continues to expand, deals like this are likely to become more prevalent, potentially drawing increased international investment into the region’s agricultural value chains.
Pearl Dairy Farms Secures $35 Million to Fuel Regional Expansion in East Africa’s Dairy Sector
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