Norfund, the Norwegian Government’s development finance institution, is backing Freight-in-Time, an East African logistics company with $10 million in equity for a significant minority stake. As part of the deal, Norfund will take a seat on the company’s board. No additional details of the transaction were disclosed.
Freight-in-Time, which is headquartered in Nairobi, has an extensive presence in 8 East African countries, with an office in every airport, port and border office in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia, Djibouti and South Sudan. The fresh capital will be used to expand the company’s activities further in East Africa, building new warehousing plant in response to increased demand from both existing and significant new clients, which include American logistics giant, UPS.
In particular, the company’s plans to increase the availability and capacity of temperature-controlled warehousing plant fits well with the DFI’s objective of investing in the region’s agribusiness value chain.
“A well-functioning logistics sector plays an important role for most companies, not the least for the successful East African vegetables and horticulture export business, and Norfund is delighted to contribute to FiT’s further growth and success”, commented Norfund’s Managing Director Kjell Roland in the statement announcing the deal.
Norway’s Wikborg & Rein and Kenya’s Kaplan & Stratton were among the legal advisors providing services to Norfund in the deal. Freight-in-Time’s shareholders were advised by an in-house legal team on the deal.