West Africa-focused private equity fund manager Injaro Investments has sold its 30% stake in NAFASO to the company’s management. The sale, made on behalf of Injaro’s $49 million agricultural impact fund, Injaro Agricultural Capital Holdings, marks a full exit for the firm, which first backed the Burkina Faso- based seed producer in 2013.
During Injaro’s ownership period, the company has grown considerably, tripling its revenues. With Injaro’s original investment, the company has managed to expand its production capacity by more than 300% over the last 4 years, and expanded its markets into the broader ECOWAS region. With the addition of improved corporate governance and stronger management, its felt that the firm is well-positioned for its future expansion plans in the region.
“Injaro maintains that investing along the agricultural value chain, especially supporting the growth of local seed companies, is critical to improving agricultural productivity in the region,” said Injaro’s Managing Principal, Jerry Parkes. “This successful exit of our investment in Nafaso demonstrates the possibility of investing in agribusinesses that generate incomes for millions of smallholder farmers as well as financial returns for investors.”