(Ecofin Agency) - Zambian and Mozambican subsidiaries of plastics manufacturer Arkay Plastics will benefit from an undisclosed investment by Spear Capital, we learned from media sources. The resource will bolster the working capital needs of Arkay's units and support plastics production.
Although the amount to be allocated by Spear Capital has not been disclosed, it is known that the firm invests between $2 and $10 million in companies operating in specific sectors in Sub-Saharan Africa. Spear Capital's investment is motivated by Arkay’s business model and its expansion strategy in Southern Africa. According to Shaw Mabuto, a partner of Spear Capital, the financial contribution will strengthen the production and sales structure of Arkay's subsidiaries.
In many southern African economies, the use of plastics remains high despite the willingness of some governments to reduce it because of its adverse effects on health and the environment, according to the Plastic Atlas 2020, published in March.