Ugandan milling business Talian Company has received a $450, 000 debt investment from social impact investor AgDevCo.
Talian will use the investment to scale up its maize and cassava flour milling operations for regional food exports and industrial use.
It will also enable the family-run business tap into the growing food markets and premium industrial starch flour supply market in East Africa.
“The funding from AgDevCo opens the door for Talian to start fulfilling its potential to be a strong player in the local and regional industrial and food markets. We are delighted to work with an investor who understands the needs of SME businesses in Uganda,” Francis Nyeko, Founder and Managing Director of Talian commented.
The company has been struggling to access working capital funding and long-term debt finance from the traditional financing system, resulting in failure to fully utilize its production capacity.
The investment which provides risk capital and technical support will increase Talian Company’s purchasing power and in turn provide higher and sustainable incomes for farmers. The miller buys maize grain and cassava from more than 6, 500 smalholder farmers in Northern Uganda.
AgDevCo’s investment will also strengthen the commercial cassava value chain in the country where 40 per cent of production is being marketed commercially following revival of the plant’s production after years of neglect and disease challenges.
Noting that the investment demonstrates the impact of patient capital to SME businesses AgDevCo’s Associate Director Kim Kamarebe added that it improves the incomes of Africa’s smallholder farmers.
In its commitment to filling the financing gap for SME agribusinesses across Africa, AgDevCo recently invested $225, 000 in Tanzania’s poultry sector.