Turaco, the Ethiopian edible oils company and owner of the brand name Tena Oil, has a new funding from the French development financial institution Proparco and the South Africa-based Ethos Mezzanine Partners. The business has announced a US$22 million investment from both investors.
“We are extremely proud of how our companies have matured to become manufacturers of the leading brands in Ethiopia in their respective sectors, as well as the tremendous growth rates that have been achieved so far,” said 54 Capital PE Advisors’ Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad.
Here Is What You Need To Know
- With the new investment, Turaco will fund the expansion of its manufacturing operations, carried on by Health Care Food Manufacturers SC and ZAK Ethiopia Manufacturing & Trading Plc.
- Some of the capital will also be applied to upgrading these facilities to meet IFC performance standards relating to Environmental, Health, Safety and Governance.
- According to a press-release by Proparco, the deal was structured and arranged by African Alpha Investment Partners.
Why The Investors Invested
“We are very excited to invest in Turaco’s Ethiopian FMCG manufacturing business. The growth prospects for the business, and the chance to invest in this management team, alongside 54 Capital and Proparco, offers us a unique opportunity to support economic growth, development and job creation in the Ethiopian private sector,” Phillip Myburgh, Managing Partner at Ethos Mezzanine Partners said.
Being Proparco’s first mezzanine transaction in Ethiopia, Geoffrey Coombs, Senior Investment Officer at Proparco said:
“Investing in the development of emerging states such as Ethiopia is a key strategic priority for Proparco, and we are proud to support Turaco in its expansion.
“Turaco’s ambitious growth strategy will support job creation, the development of local agribusiness, import substitution and economic growth in the country,” he added.
Brad Koen, Co-founder and Director of African Alpha Investment Partners, and board member of Turaco applauded Ethos and Proparco for undertaking the transaction during a time when there is an on-going global COVID-19 pandemic.
“We are excited to see 54 Capital and its portfolio of Ethiopian companies, now receiving the support it deserves from large leading institutional investors such as Ethos Mezzanine Partners and Proparco. It will undoubtedly help to propel Turaco on to even greater heights,” said Brad.
“And we salute the management of Turaco’s operations in Ethiopia for establishing market-leading manufacturing infrastructure, business processes and systems that have delivered quality and affordable locally manufactured products to Ethiopians throughout the COVID-19 crisis,” he stated.
A Look At What Turaco Does
Turaco is a holding company managed by 54 Capital PE Advisors, which holds a portfolio of FMCG assets in Ethiopia. The business, manufactures and sells edible sunflower and soya oil under the brand name Tena, as well as soaps and detergents and personal care products, including laundry soaps and perfumed toilet soaps, under the brand names 555 and Aura.
“It is our vision to improve the lives and livelihood of the communities we serve, by providing world class products and services for current and future generations, and we look forward to delivering that vision with our new financing partners,” Chairman of the Board of Turaco, Saad Aouad said.
Turaco has embarked on a bold expansion strategy, materially increasing the capacity and effectiveness of its subsidiaries’ production facilities, as well as expanding their range of product offerings, to meet growing demand for its market-leading brands in Ethiopia.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.