DOB Equity backs Kenyan wholesaler Twiga Foods

1757

 banana-5734_960_720Netherlands-based family office DOB Equity has purchased a minority stake in Kenyan wholesaler Twiga Foods.

Twiga Foods enables vendors in Nairobi to buy fruit and vegetables through their mobile phone and deliver supplies directly to retailers’ stalls.

DOB said the investment will enable Twiga Foods to expand their supply capacity to 7,350 vendors in Nairobi, selling to 1.5 million Kenyans living in low and middle-income neighborhoods.

The market value of consumable goods sold through small informal vendors in Nairobi alone is over $700m annually according to the firm.

Brigit van Dijk-van de Reijt, CEO of DOB Equity, said, “By simplifying the food supply chain, Twiga Foods will improve food security and help reduce costs for Kenyan consumers.

“Improving delivery networks and reducing the cost of food are extremely important in Kenya, where families spend up to half their income on food.

“Current supply chain problems mean fruit can be significantly cheaper for consumers outside Africa like Europe or the United States, than those in Kenya, where the fruits are actually grown, despite the huge disparity in distance travelled.”

Copyright © 2016 AltAssets

Get the latest PE News & Research delivered to your inbox every morning