Spear Capital investment to increase AFZ production by 75%

the herald

business journalist
Zimbabwe’s leading food processing company, Associated Foods Zimbabwe (AFZ), has received an undisclosed amount of equity investment from Spear Capital which the local company says is enough to increase capacity utilization to 75% against 35%.

AFZ is the producer of Mama’s and Farmgold product lines including peanut butter, jams, snacks, cereals, baked beans and canned goods. The investment from Spear Capital, a private equity firm, will be channeled into improving AFZ’s operations and environmental impact. This transaction with Spear Capital signifies our intention to continue to grow the business and offer enhanced products to our customers. The new investment will strengthen our presence in the region.

“This partnership with Spear Capital puts AFZ firmly on an accelerated growth path, allowing it to strengthen its presence in Zimbabwe and create a solid foundation for expansion in the region,” said Mercy Kunaka, Head of Marketing and Sales. at AFZ.

AFZ will also channel part of the investment into increasing its support for small local farmers through an outgrower program.

“Currently we work with 1,100 self-financed farmers on groundnuts and tomatoes and after the injection of Spear Capital, we plan to increase the number to 2,500 farmers on both crops. In order to empower women, 60 percent of the farmers are women,” said Joseph Mavu, COO of AFZ.

Commenting on the transaction, Nyaradzo Nyimo, Director of Spear Capital, said that AFZ is a company that partners with some of the largest food suppliers in Zimbabwe and therefore provides a secure entry into a high growth market in Zimbabwe.

“By expanding our already successful portfolio of businesses in the food processing market, we believe this will provide more opportunities to deliver goods to more consumers and capitalize on the lucrative market the region has to offer.” , Nyimo said.

Under the Mama brand, AFZ has a product portfolio that includes peanut butter, mixed fruit jam, sweet orange marmalade, cornflakes, popsnacks, puffed kurls, while under the Farmgold brand, the company produces tomato puree, among other products.