Here’s the latest in ESM’s regular series, Notes From Africa, which brings you the latest retail, consumer goods, and food-and-beverage stories from across the African continent. Past editions can be found here.
Kenya: Sasini Doubles Profit to $9.4 Million in 2022
Kenya's Sasini agribusiness group has announced a net profit of 1.17 billion shillings ($9.4 million) at the end of its 2022 financial year, a doubling of last year's performance. This marks the first time in seven years that the Nairobi Stock Exchange-listed company has exceeded one billion shillings in net profit.
Growth in sales, which rose by 36.5% to 7.34 billion shillings ($59.2 million) compared to 5.39 billion shillings ($43.5 million) the previous year, was the primary reason for this performance. Despite a year-on-year increase in costs from Sh4.49 billion ($36.2 million) to Sh5.54 billion ($44.7 million), the company was able to achieve a significant improvement.
Côte d'Ivoire: Government to Build Three New Cocoa Processing Plants
The Ivorian government is planning to build three cocoa grinding plants this year, with the first site having a processing capacity of 120,000 tonnes of beans annually. This location will be financed by the United Arab Emirates and based in San Pedro. The two remaining units, each with an annual processing capacity of 50,000 tonnes, will be financed by China.
The three units are set to launch by the end of the year, and they are expected to increase the bean grinding capacity of the local industry, which currently processes between 35% and 40% of the national cocoa production. These new investments have been announced while the country is anticipating processing more than one million tonnes of cocoa per year, starting with the next campaign in 2023/2024.
Nigeria: Aruwa Invests in Hibiscus Processor AgroEknor
Aruwa Capital Management, a private equity fund, has invested an undisclosed amount in AgroEknor International, a company based in Kano State, Nigeria, that specialises in processing and exporting hibiscus flowers. The funding is intended to assist AgroEknor in growing, expanding its export markets, and obtaining global certifications for food safety and hygiene.
The support comes as the company seeks to claim a greater share of the global hibiscus market, which is expected to grow by 7.5% annually between 2021 and 2025, reaching $490 million. AgroEknor, founded in 2013, processes and exports dried hibiscus flowers to international customers in the food, beverage, and pharmaceutical industries.
South Africa: Synercore Receives $4.7 Million for Expansion
Norfund, the Norwegian Investment Fund for developing countries, has granted Synercore, a South African food ingredient manufacturer, a $4.7 million financial package. The company plans to expand its ingredient portfolio and offer affordable products to the dairy and cereal industry in and outside South Africa. Synercore, founded in 2016, specialises in formulating and producing food ingredients, distributing them to fast-moving consumer goods companies, particularly in the dairy and cereal industries.
Kenya: Tuber Processing Plant to Be Established in Iten
In Kenya, the British High Commissioner has launched the construction of a potato and sweet potato processing plant in the town of Iten in Elgeyo Marakwet County. The new plant, costing $18 million, will have an annual capacity of 60,000 tonnes of tubers, processed into frozen products.
According to reports, local farmers will supply raw materials to the plant, while finished products will be mainly exported to Europe. The initiative is expected to provide an outlet for more than 10,000 small-scale farmers and improve their incomes. Kenya currently produces around 2 million tonnes of potatoes per year.
Morocco: Daifressh Buy Two New Farms
In Morocco, Spanish fruit producer Daifressh has acquired two new farms covering a total of 140 hectares. Some 105 hectares will be dedicated to blueberry cultivation while the rest will be used for raspberries. With this new investment, Daifressh's horticultural production area in Morocco now stands at 220 hectares, with over 90% of this being used for the cultivation of berries.
This move is part of the company's global strategy to increase its fruit production capacity, expand shipments, and improve its market share in Central European countries.