MOZAMBIQUE – AgDevCo has expanded its portfolio in Mozambique with a USD 10 million investment into Dowson Limitada (“Dowson”), a Sussundenga-based primary producer of macadamias and avocados.
Established in 2012 by farmers who recognized the ideal growing conditions in central Mozambique, Dowson has since expanded spanning 270 hectares of macadamia and 174 hectares of avocado irrigated farms.
AgDevCo’s investment allows Dowson to expand production to 1,000 ha over the next five years.
According to Kirk Lynch, Senior Investment Manager and Project Lead, partnering with Dowson to make this major investment in the Mozambique macadamia and avocado industry, will help open new export markets.
“We have been impressed by Dowson’s management and the use of technology to optimize productivity on the farms,” said Lynch. “The expansion will drive rural job creation and skills development.”
Jack Brotherton, co-founder, and CEO of Dowson said, “We are grateful to be concluding the AgDevCo financing.”
“The structured financing allows Dowson to achieve its expansion goals in both macadamias as well as avocados, whilst allowing for the trees to mature before any debt servicing is required.”
AgDevCo is a specialist investor in African agriculture. We invest to grow sustainable and impactful agribusiness.
Their vision is a thriving commercial agriculture sector that benefits both people and the planet which is achieved by investing in and supporting agribusinesses to grow, create jobs, produce, and process food, and link farmers to markets.
AgDevCo’s current portfolio has USD183 million committed funds into 41 companies that work towards climate sustainability and, where possible, regenerative solutions.
It is crucial to note that this is not the first time the company has channeled its investment in Zambia.
In 2021, the UK-based social impact investor closed a USD 3 million debt investment in Quinta da Bela Vista Limitada (QBV), an irrigated banana estate located in the Boane area in Mozambique.
AgDevCo’s investment aimed to support QBV’s expansion by providing long-term capital. QBV at the time employed over 240 people, with further growth in jobs expected because of the expansion.
The banana industry is a key source of employment, improving the livelihoods of local communities. The export of bananas offers Mozambique the opportunity to increase foreign exchange revenue.
“AgDevCo’s funding of QBV will enable the company to expand and create employment opportunities in an optimal banana-growing area in southern Mozambique,” said Simon Morgan, Director of QBV.
“They have been an ideal funding partner for QBV, structuring the loan to suit the needs of the company.”
This article was originally published by: Fresh Produce