Unlocking Growth for Angola's Agri-Food Sector

The Kimbo Fund, an impact-focused private credit vehicle managed by BFA Asset Management, has finally made its very first investment in FoodCare, a company processing agri-foods in Angola with high export potential. The transaction is in the form of convertible debt, thus combining growth capital with the option to convert into equity, and it is a breakthrough in the development of private capital in Angola.

This investment helps FoodCare to solve a problem that has been bothering it for a long time: the international demand is growing so fast that the company's production capacity cannot meet it. At present, FoodCare is processing around 84 tons of products per month, including traditional ones like cassava, mufu, and mopane worms. Nevertheless, it gets global orders amounting to approximately 700 tons per month which means that there is a huge gap between supply and demand that this funding aims to close.

Strategic Capital with Impact Goals

The strategy of the Kimbo Fund is not limited to providing funds only. It aims at undervalued and asset-heavy businesses with good fundamentals but poor access to the right type of capital. One of the ways to provide growth capital to FoodCare is through convertible debt, which also aligns the interests of the investor with the long-term success of the company. Besides that, the company gets help in the form of knowledge transfer, strategic guidance and technical support, which is very important for the efficient scaling of the company.

Marlene José, founder and CEO of FoodCare, said that this partnership is like magic. For many years, the company had to say no to customers because they could not produce more than their capacity. The firm, now with a new source of funds, can not only satisfy the existing demand but also spread globally and in turn, strengthen its supply chain, which will be good for the local farmers and suppliers who are indirectly involved in the working of the company.

Broader Implications for Angola’s Economy

The deal is important not only for FoodCare but also for the entire ecosystem. It illustrates that structured private credit can be the key to the growth of small and medium enterprises (SMEs) in the agricultural sector in Angola, which is usually ignored by the traditional financial sources. The investment in question does not only fill the immediate need for the company but also signals a larger commitment for private capital to eventually bankroll the production of this country’s leading export commodities that are foreign currency generating, create jobs and improve living conditions in rural areas.

FoodCare also enjoyed a positive impact through its participation in the Founder Institute worldwide acceleration program, which not only communicated clearly the company’s structure and value proposition but also opened the door to networks of investors. It was this solid foundation that made the company a more appealing target for Kimbo Fund’s investment interest in sustainable growth and market effect.

To put it briefly, the Kimbo Fund’s backing of FoodCare marks a historic moment for the private capital ecosystem in Angola by marrying financial innovation with social and economic development. In the course of FoodCare's expansion, it could be regarded as a guide for similar investments which support the African continent’s undercapitalized but high-potential businesses.