(Ecofin Agency) - Spear Capital, a South Africa based private equity fund, invested $4.5 million for 40% stakes in South African Peries Foods, a meat processing firm.

The investment firm structured this investment through its second fund Spear Africa Holdings Ltd II.

With two representation bureaux in Zimbabwe and in Norway, Spear Capital mainly invests in the consumer goods sector and in agribusiness SMEs. Peries Foods, which develops new processed meat products, wants to export them towards other Sub Sahara African countries in the coming years and, the funds it received will facilitate this expansion.

At the end of Q2, 2018, the South African meat market shrunk by 75% due to the listeriosis outbreak. A year earlier, this market was estimated at $412 million, representing an 8% rise year on year.

Chamberline Moko