DEG invests $3.1m for minority interest in Malawian agricultural solutions company
Posted on: 29 April, 2020 at 9:06 AM
German development financier DEG has disclosed a commitment of approximately $3.1 million for a minority interest in Malawian agricultural solutions provider Farming and Engineering Services Limited (FES).
Phatisa Food Fund 2 (PFF 2) and a group of co-investors – Norfund, Mbuyu Capital and DEG – recently announced the acquisition of FES. The investment will support FES’s long term growth strategy, assisting the company to expand its successful business model to neighbouring countries.
FES caters for a broad customer base of commercial and emerging farmers. It is the single largest investor in Malawi’s agricultural equipment industry. The company provides a wide range of high-tech agricultural solutions including precision and low-till farming; drone technology for crop analysis and crop protection; irrigation systems including water management solutions; and contracting services. AgriLab, an FES initiative, is Malawi’s first independent soil and leaf testing facility which allows farmers to test, manage and control their soil, leaf and water quality. This initiative contributes to improved yields and crop quality, increased revenue and reduced input costs.
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