Investment | DEG invests in Nigerian food producer

LAGOS, Capital Markets in Africa: Deutsche Investitions- und Entwicklungsgesellschaft mbh (DEG) announced an investment in the Nigerian Beloxxi Industries Ltd. (Beloxxi) with around US$10mn, with which the biscuit manufacturer plans to expand its production. Further investors are the investment companies, 8 Miles and Africa Capital Alliance, which invested an additional amount of US$70mn.

The family-run company, Beloxxi, produces cream crackers in its state of the art production facility. These thin, crispy wheat crackers are becoming more and more popular among consumers in Nigeria. Even though Beloxxi is the market leader it cannot satisfy the rising demand for cream crackers. The company has therefore decided to substantially expand its capacity by setting up four additional production lines. Just as the existing five productions lines, these are to be installed by Imaforni S.p.A., part of the German GEA group and the world leader in the manufacturing of lines for the production of crackers.

“We are glad that with our commitment we are able to accompany a successful medium-sized enterprise in further expanding its operations,” said Gunnar Stork, head of DEG’s Corporates/Funds Africa Risk Capital department. “The investment underscores our confidence in the future of the company.” Obi Ezeude, Founder and CEO of Beloxxi, emphasised: “With DEG on hand, we’ve got a strategic partner who shares our visions. In this way we are able to create employment for young people, in particular, thereby offering them new prospects.”

In 1994, Beloxxi started operations as an importer. In 2005, it began producing its own crackers. The company currently employs around 2,000 people, with more than 300 new jobs to be created through the extension investments. It invests heavily in continuing training of its employees and also supports them in privately initiated training measures.

Most of the cracker production is sold locally via street vendors and small shops. Besides this, the crackers are sold to supermarkets, schools, hotels and caterers of international airlines. There are plans to expand the product range: next to salty crackers, sweet pastries are to be offered in future.

As part of its Business Support Services, DEG will also be assisting Beloxxi in the implementation of an energy efficiency check. Advising and financing small and medium-sized enterprises in developing and emerging countries is one of DEG’s focal areas. In the past year alone, it provided finance totalling around EUR632mn to SMEs for their investments.