The acquisition plan is financially supported by Norfund, which accounts for close to 40 investments in South Africa over the past 40 years.

Last week, South African food ingredients producer Synercore Holdings secured ZAR80 million (US$4.5 million) in convertible debt financing from Norwegian development finance institution Norfund. The funding will support Synercore's expansion and the acquisition of two local agribusiness firms,  Impilo and Sizwe namely.

"Through the involvement of Norfund, as a key stakeholder, we will be able to extend our reach even further, and we believe that we can inspire the next generation of farmers and scientists within the agriculture and food industry," indicated Tertius Cilliers, CEO of Synercore.

In addition to Synercore, since 2003, Norfund has made some 40 investments in the financial services, sustainable energy, and small and medium-sized enterprise (SME) financing sectors in South Africa.

The recent deal reflects its interest in the South African rapidly moving consumer goods market. The company targeted by this funding plans to enter into the food supply chain while strengthening and diversifying its service offering. Indeed, in 2019,  food ingredient imports topped US$1 billion in South Africa. Synercore wants to reduce those imports by producing the needed food ingredients for the domestic, and even sub-regional, markets.

Chamberline Moko