Spear Capital backs Greenwave Milling with debt facility

24 Feb, 2023 - 00:02 0 Views
Spear Capital backs Greenwave Milling with debt facility

eBusiness Weekly

Business Writer

Spear Capital, a private equity firm based in Cape Town, has invested in Greenwave Milling, a local manufacturer and distributor of basic commodities, through its subsidiary Superior Food Group Africa.

The deal will provide Greenwave Milling with a substantial debt facility to purchase raw materials for milling and packaging, and to meet growing demand for its products.

Previously part of the Metro Group, which is already a Spear Capital investee, Greenwave Milling is now a standalone production unit for the group.

It manufactures, packages, and distributes a number of basic commodities including roller meal, refined meal, rice, cooking oil, flour, beans, salt, sugar, kapenta (a regional type of dried sardine), soya chunks, and other household essentials.

The funding from  Spear Capital will be used to purchase raw materials for milling and down packing and to ensure that it is able to meet growing demand for the GreenWave range of products.

The investment in Greenwave Milling is in line with Spear Capital’s target United Nations Sustainable Development Goals, including gender equality, decent work, and economic growth.

According to Spear Capital managing partner Martin Soderberg, the deal will unlock future growth and working capital for Greenwave Milling while meeting Spear Capital’s sustainability goals, including Gender Equality (SDG5), Decent Work, and Economic Growth (SDG8).  .

The investment will further enhance Superior Food’s focus on building a stable food platform in Southern Africa. Through its shareholders, Superior Food will also assist Greenwave Milling in managing its procurement of raw materials.

“Having been part of the Metro Group success story in Zimbabwe for several years now, we know how much intellectual capital there is in the business,” said Spear Capital Managing Partner, Martin Soderberg.

“When some of that capital was used to launch Greenwave Milling as a standalone business, it only made sense to back it too.”

Through the investment, Greenwave Milling aims to increase sales and its contribution to the Zimbabwean fiscus.

Spear Capital’s investment in Greenwave Milling is timely as the demand for basic commodities in Zimbabwe continues to rise.

Through its shareholders, Superior Food will assist GW Milling with managing its procurement of raw materials.

The investment by Spear Capital is therefore seen as a positive development for Zimbabwe’s basic commodities market and the country’s economy as a whole. As Zimbabwe continues to attract foreign investment, Greenwave Milling’s ability to manufacture and distribute high-value basic commodities will be set to contribute to the country’s economic growth.

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