IFC Invests $11m in Kenyan Insta Products

IFC has made a combined investment and mobilization of $11m into Kenyan company Insta Products, which produces ready-to-use therapeutic food.

Oumar Seydi, IFC Director for Eastern and Southern Africa, said: “Insta’s products are helping people afflicted with acute hunger in the drought-affected Horn of Africa. IFC is committed helping private companies like Insta to be part of the solution on crisis relief alongside governments and humanitarian agencies.”

Insta is currently the largest manufacturer of ready-to-use therapeutic food in East Africa, and a top five supplier to UNICEF globally.

A high-calorie fortified peanut paste, the food is used for emergency feeding by relief organizations, like UNICEF and the World Food Program, to treat people suffering from acute malnutrition across East Africa and Yemen.

Amid the worst famine crisis since 1945, close to 70% of Insta’s therapeutic foods are being used to treat drought-related malnutrition in Somalia, Kenya, South Sudan and Uganda.

Nearly half of all deaths in children under five years can be attributed to malnutrition.

Malnutrition in children can lead to poor cognitive development, learning capacities and increased risk of mortality. UNICEF estimates that 36% of children in East and Southern Africa show signs of stunted growth.

IFC investment will help Insta expand its operations and supply its therapeutic food to an additional 350,000 people annually, in emergency zones in East Africa and beyond.

“IFC’s investment will allow Insta to ramp up its production of therapeutic food to reach more people suffering from malnutrition in conflict-affected areas and emergency zones. You cannot imagine the difference IFC’s vote of confidence is creating in Insta’s performance and the results in the lives of these little children,” said Dhiren Chandaria, CEO of Insta Products.

As part of the $11m investment, $3.5m will be provided through the IFC’s Global Agriculture and Food Security Program.

Donor partners to the program are the governments of Canada, Japan, the Netherlands, the UK and the US.

This funding makes it possible for IFC to support projects with strong focus on food security and poverty reduction.

An additional $4m of the mobilized funding is provided by IFU, the Danish investment fund for developing countries.

“We are very pleased to provide financing for Insta, as their products are extremely important in combating acute hunger and helping vulnerable people to survive,” said Tommy Thomsen, CEO of IFU. Source: Africa Global Funds

S. African owner buys Centum stake in Kenya Wines Agencies

The South African owner of Amarula and Viceroy brands is now the majority owner of Kenya Wine Agencies Ltd (Kwal) after buying out investment firm Centum in a deal estimated at Sh1 billion.

Distell yesterday announced it has acquired Centum’s entire 26.43 per cent stake in Kwal for an unknown value; bringing to 52.43 per cent its ownership in the wine maker and alcoholic beverages marketer.

“Spirits has been the fastest growing segment of Kenya’s alcohol industry and growth is anticipated to remain robust,” said Mr Donovan Hegland, managing director of Distell Africa.

“Our strategy is to expand geographically through acquisitions of and/or partnerships with those who have leading brands, rich heritage, and strong platforms,” Mr Hegland said in a statement. The Stellenbosch-based brewer first acquired a 26 per cent stake for Sh860 million from the Kenyan Government, which owns Kwal through the Industrial and Commercial Development Corporation.

State-backed financier ICDC owns a 42.65 per cent stake in Kwal, with distributors having 0.92 per cent.

There is an ongoing sale of 3.84 million shares or four per cent stake at a price of Sh34.46 a piece to staff under an employee stock ownership plan.

The acquisition comes barely three months after Kenya’s antitrust regulator granted Kwal a five-year exclusive deal to be the sole importer and distributor of 16 brands made by Distell.

The Competition Authority of Kenya in December allowed Kwal to solely import and distribute the brands made up of brandy, wine and whiskey from the South African company.

Distell brands such as Amarula, Viceroy, Drostdy-Hof, Two Oceans, and Chamdor juices, account for half of Kwal’s turnover, according to regulatory filings with the competition watchdog.

Kwal sold about eight million litres of alcoholic beverages in 2016; the brewer disclosed.

Kwal’s iconic brands include Kingfisher, Kibao Vodka, Caprice wine, Hunters Choice, Simba Cane, Beehive brandy, Yatta Grape Juice and Yatta Wines, which make up the other 50 per cent of sales.

The company enjoyed a monopoly manufacturing and distributing wines and spirits until liberalisation of the Kenyan economy in 1992/1993, exposing Kwal to stiff competition.

Kwal is banking on Distell’s backing to fend off rivalry in Kenya’s highly attractive industry.

Head-to-head battle
Kwal is now locked in a head-to-head battle for market share with rivals such as East African Breweries Ltd, Keroche, London Distillers, Wines of the World, and Africa Spirits, who manufacture or market imported alcoholic and non-alcoholic beverages.

Distell first signed a deal in 1998 with Kwal to distribute its products in Kenya. But in 2012, the South African firm threatened to terminate the partnership and enter the Kenyan market on its own, but a sweetheart saw Distell buy a controlling stake in Kwal. Source: Nation Online 

Cipla acquires South Africa-based firm for R26m

Pharma major Cipla today said its arm Medpro South Africa (Pty) Limited has signed an agreement to acquire 100 per cent stake in Anmarate (Pty) Limited, South Africa, for around R26m.

Anmarate (Pty) Limited has a turnover of R2.5m for the financial year ending on February 29, 2016, Cipla Ltd said in a BSE filing today.
The acquisition would strenghen the market position of the company, it said.

The transaction is expected to be completed before April 14, 2017.

It said that the cost of acquisition is R26,253,659 subject to post closing of net working capital, not exceeding R30m.

The company acquired 4000 shares of ZAR 1 each representing 100 per cent of the Anmarate’s share capital. Source: CBN