Aavishkaar Capital Invests USD 5 Million in Horizon Group Africa to Strengthen Spice Supply Chains

Strategic Insights -

In a significant move to bolster Africa's agricultural exports, Aavishkaar Capital has extended a USD 5 million loan to Horizon Group Africa, a leading spice processing and export firm. This investment is facilitated through the Global Supply Chain Support Fund (GSCSF), a USD 250 million initiative launched by Aavishkaar Capital in collaboration with the German development bank KfW. The GSCSF aims to scale businesses in Africa and Asia, promoting sustainable supply chains, commercial returns, and measurable Environmental, Social, and Governance (ESG) outcomes.

Key Takeaways:

  • Aavishkaar Capital has invested USD 5 million in Horizon Group Africa, a spice aggregation and processing facility in Nigeria, Tanzania, and Madagascar.
  • The loan will be used to meet working capital needs, specifically the procurement of raw materials to fulfill growing international orders for premium whole spices such as ginger, turmeric, cloves, cinnamon, cardamom, and black pepper.
  • Horizon Group works directly with over 3,000 farmers, offering training in good agricultural practices to support the shift toward organic cultivation, and has established farmer cooperatives to ensure traceability and certification compliance.
  • Darren Lobo, Director at Aavishkaar Capital, highlighted the synergy between the two organizations, stating that the investment will be invaluable as Horizon builds into the leading African spice processing company.
  • The partnership reflects KfW's commitment to strengthening sustainable supply chains across Africa and in Asia, and Dr. Markus Aschendorf, Head of Division at KfW, emphasized the investment's focus on purpose-driven capital, catalyzing ESG transformation, and unlocking inclusive growth.
  • The Global Supply Chain Support Fund has made three notable investments in Africa, with Uganda remaining an upcoming focus, where the fund seeks to provide innovative financing solutions and market linkages to Ugandan SMEs in the agriculture sector.

Statistics:

  • USD 5 million loan to Horizon Group Africa
  • Over 3,000 farmers trained in good agricultural practices
  • 3,000 farmers working directly with Horizon Group Africa
  • USD 250 million Global Supply Chain Support Fund
  • 8 investments made globally by the Global Supply Chain Support Fund
  • 3 investments in Africa by the Global Supply Chain Support Fund

Sources:

  • [Source 1: Amon Katungulu, Nile Post, https://allafrica.com/stories/202404161015.html]
  • [Source 2: Aavishkaar Capital]
  • [Source 3: KfW, Global Supply Chain Support Fund]
  • [Source 4: Horizon Group Africa]
  • [Source 5: Aavishkaar Capital, Global Supply Chain Support Fund]