Spear Capital investment to increase AFZ's production 75pc
Associated Foods Zimbabwe (AFZ), a prominent food processing company in Zimbabwe, has secured an undisclosed equity investment from Spear Capital. The investment will enable AFZ to increase its capacity utilization from 35 percent to 75 percent. AFZ is known for its Mama's and Farmgold product lines, which encompass a range of food products such as peanut butter, jams, snacks, cereals, baked beans, and canned goods. The funding from Spear Capital will be used to enhance AFZ's operations and environmental impact, allowing the company to expand its presence not only in Zimbabwe but also in the region. AFZ also plans to allocate a portion of the investment towards supporting local smallholder farmers through an out-grower scheme. Currently, AFZ collaborates with 1,100 self-funding farmers, and with the injection of capital from Spear Capital, they anticipate increasing this number to 2,500 farmers, with a focus on empowering women, who make up 60 percent of the farmers. Spear Capital views AFZ as a strategic partner due to its association with major food suppliers in Zimbabwe, providing a secure entry into the country's high-growth market. The investment is expected to create more opportunities for AFZ to supply goods to consumers and capitalize on the lucrative regional market. Under the Mama's brand, AFZ offers a diverse portfolio of products, including peanut butter, mixed fruit jam, sweet orange marmalade, cornflakes, popsnacks, and puffed kurls. The Farmgold brand specializes in tomato puree and other related products.