Vital Capital has taken on a USD $9 million impact investment in a Dairy Project in Uganda. The investment objectives include improving yields for local small hold dairy farmers, modernizing milk collection processes and strengthening food security. Through its involvement in this project Vital aims to improve the social-economic conditions in the region, by directly engaging with local small-holder dairy farmers, modernizing and improving milk production and linking production directly to the growing dairy market in Uganda and the broader region.
Kiruhura, the region in which the project is located, is the largest milk-producing area in Uganda, where for centuries cattle farming has been a key cultural and economic way of life that provides a strong social bond among the members of the community. The investment will build on this indigenous tradition and increase local value-added through the construction of a modern dairy processing operation that, once operational, will allow for the local processing of 50,000 liters of milk per day into dairy products such as yogurts, UHT milk and more. The investment is further advantaged by the project’s geographic position within the region that enables it to immediately supply both the Kampala (Uganda) and Kigali (Rwanda) markets, with possible future expansion into Burundi, DRC and Tanzanian markets.
The partnership with Vital Capital fulfills a longstanding objective of the shareholders to transform the Tomosi’s Farm into a profit-making enterprise carrying on the business of integrated farming that includes cattle rearing, agricultural production, agro-processing and agro-marketing. The investment follows a hands-on operational approach Vital has successfully implemented in similar projects throughout Africa, by creating commercial-scale agro-processing ventures, while strengthening rural communities and utilizing a region's competitive advantages.
Mr. Eytan Stibbe, Founding Partner of Vital Capital commented, “This project is a perfect example of how financial profit and positive social purpose can come together to benefit both investors and local communities. When fully implemented, Tomosi’s Farm will at once improve the income of small hold farmers, establish distribution of quality dairy products to the region, improve the food security condition, reduce costs for consumers, and of course return profit to our investors. This is impact investing”