PCP invests in Raintree Farms, an innovative agri-ceutical concept
Pearl Capital Partners (PCP), though the Yield Uganda Investment Fund is proud to announce its fifth investment in Uganda by making a commitment to invest UGX 3.9bn to Raintree Farms Limited, a pioneer agri-ceutical enterprise specialising in the production and processing of organic moringa.
Raintree Farms is based in Masindi, Uganda and was co-founded in 2012 by the CEO, Mr Teddy Ruge and the COO Ms. Pamela Nyakato. The company’s business operation is centred around the growing and processing of moringa, in order to produce premium, organically certified moringa leaf powder and moringa oil. The products are sold to the nutritional, beauty and health markets both here in Uganda and internationally.
In order to satisfy the increasing market demand for moringa products, Raintree has undergone rapid change since it started its operations, not only through the development of its own farm but most notably through the introduction of an innovative secure income program (SIP) for new-to-market smallholder moringa farmers. A program which is designed to stabilise incomes and reward farmers for their commitment and application in the growing of moringa. Raintree, through Yield Fund’s investment is projected to support over 1,300 farmers throughout the course of its investment.
Yield Fund recognises that the company is at a critical growth stage and so has committed UGX 3.9bn to support integrated growth through the provision of both capital expenditure and working capital. Over the next three years, Yield Fund’s investment will support expansion in a new processing and storage facility as well as also providing automation, logistical and monitoring controls, all of which will drive the business forward as production and processing increases.
In tandem with Yield Fund’s investment, Raintree Farms has been successful in obtaining a Business Development Support (BDS) matching grant facility, managed by IFAD, to develop internal structures and practices as well as further develop the smallholder farmer community.
Teddy Ruge, founder and CEO of Raintree Farms with delight said, “Since our inception we’ve always had a belief that we could do well as a company while doing good in the community. We are very excited to partner with Yield Fund. The support will help us accelerate our growth and thereby the impact we can deliver alongside our success. On behalf of all our employees that keep us running, the farmers who provide us with quality raw materials, and the clients that trust us to deliver, we receive this investment with the greatest of gratitude. We look forward to continued growth and creating more opportunities for everyone in our community”.
Dr. Edward Matsiko Isingoma, PCP Managing Partner said, “Raintree marks Yield Fund’s fifth investment; continuing the Fund’s strategy of investing in growth opportunities which have the potential to deliver transformational financial and social impact. Raintree holds a strong position in Uganda’s agri-ceutical economy, being one of the key organically certified moringa producers in Uganda. This clearly gives the company a competitive edge as it continues to establish itself in this rapidly growing nutritional and health product sector. We are confident our investment will support the business on this journey and will bring about real change and sustainability for both the company and the large community of smallholder farmers in Masindi. One of the key facets of Yield Fund Uganda is to introduce social impact alongside our investment and we feel that this is really being achieved here”. Source: AVCA