Dutch emerging markets fund manager XSML has invested in Central African Republic-based coffee roasting facility Café Gbako.
XSML said the company currently outsources its roasting process to a former French facility with outdated equipment, generates unreliable and poor quality roasts.
The private equity firm said it would invest in new roasting equipment, construct a factory and gain a strategic stock of coffee beans for the first year of production.
XSML managing partner Jarl Heijstee said, “Besides the impact on the local smallholder farmers, Café Gbako is also tapping into a large underserved market.
“It is expected that around 80 per cent of the coffee will be sold in sachets of 100 gram, which is targeted to the low-income segment of the market that is neglected by the competition.
“Café Gbako is offering high quality affordable coffee to low-income households.
“With our investment we make affordable coffee available in rural areas in CAR as well as the neighboring province of Equateur in the Democratic Republic of Congo, with a population of over 7 million.”
The firm made the investment through its $25m Central Africa SME Fund.
Although terms of the deal were not disclosed, the fund generally provides investments of between $100,000 and $500,000.
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