Local maize millers get over Rwf2b funding

Two local maize millers, ProDev Group Holding and Minimex have secured $3m (over Rwf2b) funding from Fanisi Venture Capital Fund, an investment firm, to capitalise their businesses.Tony Wainaina, the Fanisi Capital managing partner, explained that the funding, which was achieved through a combination of equity and debt, would help the two companies businesses across Rwanda and the region. The equity amounts to $1.9m (Rwf1.2b), while the debt is $1.2m (Rwf742m).This is Fanisi’s second investment in the country after the firm funded pharmaceutical wholesaler, Sophar, in December last year. Fanisi has become the leading private equity investor in Rwanda since 2012.“With a significant minority share holding, plus active participation at board level, Fanisi involvement will provide access to global expertise on supply chain management, as well as enhance ProDev’s purchasing power. This will make a significant impact, especially as the ProDev Group is preparing to expand operations and enter new markets,” he said.It would also help start on a programme to fortify its branded maize meal.“Demand for flour and bran is higher than the current supply...with this investment, the plant will be able to operate at full capacity,” said Claude Mansell, the ProDev Holding managing director, while confirming the investment at Hotel Des Milles Collines in Kigali.“Once we have reached full capacity, the plant production can easily be doubled without overhauling its infrastructure,” he said.Minimex, which has been operating for the last six years, is operating under capacity, officials said.The miller’s production capacity is 44,000 tonnes per year. However, in 2011 it used just 20.4 per cent and 43 per cent in 2012 of its installed capacity, the officials added.The miller is currently in the process of introducing fortified maize meal onto the market in collaboration with the World Food Programme (WFP). The move is in line with the health and education ministries’ programme to eradicate malnutrition, especially among school children.

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Local maize millers get over Rwf2b funding