Eos Capital-managed Euphrates Agri fund has acquired a minority stake in Cherry Irrigation’s Namibian business for an undisclosed amount.
Cherry Irrigation is a South Africa company with units in Namibia and Angola. The company was founded in 1987 with irrigation design as the focus service, however, its service offering now includes irrigation automation, design and installation services.
The investment, according to Euphrates Agri fund, will be used as growth capital within the Namibian business with a view to increase irrigated land in the country and thereby improve food production in Namibia.
“We are excited about the growth potential of the business given the need for Namibia to increase irrigation to protect itself from the impacts of climate change. This will improve food security of the country as well as increase the export of high value crops. Not only will this bring attractive returns for investors but will also have a sustainable positive impact on the country,” said Frederico van Wyk, Eos Capital Associate Principal.
Eos expects Cherry Irrigation to create approximately 20-25 permanent jobs and approximately 40-50 temporary jobs when installing large scale irrigation systems on farms.
The latest acquisition represents the first deal for Eos under the banner of its Euphrates Agri Fund – the first Namibian agri private equity fund.
Euphrates Agri Fund in December was sitting on N$90 million raised from a target of N$1 billion, with plans to continue with its capital raising for the next two years.
The fund targets agriculture investments across the value chain through equity funding with the aim of generating long-term, stable returns for its investors and having a sustainable impact in Namibia on climate change, wealth inequality and empowerment of women.
Euphrates is the third fund raised by Eos Capital.
Eos also manages the N$500 million Namibian Infrastructure Development and Investment Fund (NIDIF) and the N$460 million Allegrow Fund, a general private equity fund.
