Norfund backs Ethiopia's largest FMCG platform SAMANU

Norfund and a consortium of private investors managed by 54 Capital announced a $21 million growth capital investment into Ethiopia's largest FMCG platform SAMANU.

SAMAN is a platform company with well-established brands operating in Ethiopia's main FMCG sub-sectors (Tena Edible Oils, 555 and Aura Soap Q Detergents, and Chef Luca wheat products).

The investment by Norfund will fund the construction of a new solvent extraction plant to produce edible oils based on locally sourced sesame, sunflower and soya beans in its refineries. By reducing the dependency on imported raw materials, the investment aims to create jobs in value-addition and increase Ethiopia's food security. The completion of a vertical integration project will also allow for increased export opportunities within the sectors the company already operates.

To ensure enough volume of locally produced oilseeds for its refineries, the company intends to develop large oilseeds clusters in Ethiopia over the next six years. In the first six months post investment, the objective is to identify 642 clusters and sign contracts with up to 7,000 smallholder farmers. Norfund, through its Business Support Facility, plans to use grant funding to assist contracted smallholder farmers with inputs like high quality seeds, fertilisers, training and capacity building, as well as agricultural technology to boost productivity.