Spear Capital, a private equity firm based in Cape Town, has invested in Greenwave Milling, a Zimbabwean manufacturer and distributor of basic commodities, through its subsidiary Superior Food Group Africa.
The deal will provide Greenwave Milling with a substantial debt facility to purchase raw materials for milling and packaging, and to meet growing demand for its products. Greenwave Milling, previously part of the Metro Group, aims to increase its sales and contribute to Zimbabwe’s economy.
The investment in Greenwave Milling is in line with Spear Capital’s target United Nations Sustainable Development Goals, including gender equality, decent work, and economic growth.
According to Spear Capital managing partner Martin Soderberg, the deal will unlock future growth and working capital for Greenwave Milling while meeting Spear Capital’s sustainability goals.
The investment will further enhance Superior Food’s focus on building a stable food platform in Southern Africa. Through its shareholders, Superior Food will also assist Greenwave Milling in managing its procurement of raw materials.
The company’s product range includes roller meal, refined meal, rice, cooking oil, flour, beans, salt, sugar, kapenta, soya chunks, and other household essentials. As a standalone production unit for Spear Capital, Greenwave Milling aims to continue manufacturing and distributing quality high-value basic commodities throughout Zimbabwe.
Spear Capital’s investment in Greenwave Milling is timely as the demand for basic commodities in Zimbabwe continues to rise. As reported by Trading Economics, Zimbabwe’s annual inflation rate stood at 175.66% in December 2022, the highest since December 2008.
Inflation has resulted in the rising cost of living, which has affected the purchasing power of many Zimbabweans. The investment by Spear Capital will enable Greenwave Milling to keep prices competitive while meeting growing demand.
Zimbabwe is known for its agriculture and mining sectors, and the country’s government has been working to attract foreign investment to drive economic growth. As reported by the Zimbabwe Investment Authority, the country recorded foreign investment inflows of $1.5 billion in 2021, a significant increase from $263 million in 2020.
The investment by Spear Capital is therefore seen as a positive development for Zimbabwe’s basic commodities market and the country’s economy as a whole. As Zimbabwe continues to attract foreign investment, Greenwave Milling’s ability to manufacture and distribute high-value basic commodities will be set to contribute to the country’s economic growth.