A $1.3M co-investment paid for the processing plant.

The business

AMFRI Farms Ltd produces, processes and exports fruit, vegetables and spices from Uganda. The company holds awards and certifications as an organic food exporter. It sells into the EU, the USA and the UAE. Certified organic is a premium priced segment, and that segment is growing worldwide.

Six company farms employ up to 300 people in central and northern Uganda. A further 560 organic certified out-grower farms supply the company in the same regions. Those smallholders supply 80% of everything AMFRI processes and exports. Most of the employees are young people, and about 40% of them are women.

Where the margin went

AMFRI processed its produce a long way from the point of export. Every consignment travelled far by road before it reached Entebbe. Freight cost and product loss came straight out of the margin. The company could see the demand in the premium segment. It could not take that demand without more processing capacity in the right place.

What we financed

MMOF invested $1.3M jointly with Yield Fund Uganda. The money paid for a larger processing plant, built and relocated closer to Kampala. Bulk trucking to Entebbe is now short. Finished product leaves by air cargo for wholesale and retail buyers abroad.

The capital came with business development services. MMOF worked on the financing, the accounting, the marketing and the sales. The company can now meet its customers in the way those customers expect.

Where it stands now

The new plant is built. With the larger capacity, AMFRI plans to expand its previous operation by more than twice. Larger volumes mean the company buys more from the out-grower farms.

That has a direct effect. AMFRI creates work on the farms and in the production facilities. It improves farming practice across its supply base. And it lifts the income of many smallholder households.