openPR Logo
Press release

Pangea Ventures Helps Ghanaian Produce Exporter Maphlix Secure $700k Loan from AVV for Sustained Growth Strategy

07-16-2021 08:10 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Pangea Ventures

Maphlix team in the field

Maphlix team in the field

** AV Ventures’ loan enables the West African Agri-SME to modernize production and distribution systems to enhance operational efficiencies and reduce post-harvest losses.

** The expected tripled volume of produce sourced from its outgrower network of nearly 200 smallholder farmers improves productivity, incomes, and economic livelihoods of these farmers and their dependents.

** This model for profit and impact is being replicated in other agricultural value chains, towards which Pangea is attracting impact investors into the agriculture sector in Ghana and West Africa.

Pangea Ventures, a US-based connector of impact investors and West African capital seekers in the agricultural sector, has facilitated a USD700,000 loan between AV Ventures (AVV), the impact investing subsidiary of ACDI/VOCA, and Maphlix Trust Ghana Limited, a leading producer and exporter of fresh vegetables, roots, tubers, and fruits.

With AV Ventures’ investment, Maphlix can acquire new farming equipment to mechanize production activities as part of its efforts to modernize production for enhanced operational efficiencies. A planned expansion and automation of its irrigation infrastructure increases Maphlix’s production capacity and ensures consistent product volumes and quality, which are key for retaining buyers in the horticulture sector. In addition, Maphlix’s cold chain system can be upgraded to support the transportation of fresh produce directly from its farms to key distribution outlets. This reduces post-harvest losses and extends the shelf life and quality of produce.

“This investment is a win/win for both sides. Maphlix is a role model for Ghanaian agribusinesses and can now continue its strategy of growth and expansion. In fact, these improvements will more than triple the volume of produce sourced from its outgrower network of nearly 200 smallholder farmers, 30 percent of whom are women,” said John Scicchitano, Founder of Pangea Ventures. “High-quality farm inputs and training in best agronomic practices improves the productivity, incomes, and economic livelihoods of these farmers and their dependents.”

Founded in 2013 by Felix Kamassah, a Ghanaian entrepreneur with significant experience in horticulture, Maphlix is based on three core values: maximization, accessibility, and proactivity. “The AV Ventures loan is timely because we are looking to expand our production capacity in order to build a sustainable raw material base for processing in the near future. It fits with our mission to adopt a market driven approach in the production and supply of high-quality food and industrial products to the market in a partnership that is productive enough to transition farmers from subsistence to commercial production,” states Felix Kamassah, Founder & Managing Director of Maphlix Trust Ghana Limited.

The expansion in production capacity will enable Maphlix to secure additional sales contracts with foreign-based customers, resulting in increased export earnings and import substitution of horticultural products in Ghana. This will contribute to strengthening of the local currency and building successful export businesses in line with the export-led growth strategy of the government of Ghana.

The strong commercial relationship between Maphlix and its smallholder farmer network demonstrates the viability of large-scale off-taker and producer partnerships. This type of partnership could be replicated in other agricultural value chains as a model for attracting inclusive private sector investment into Ghana’s agriculture sector.

The loan is part of AV Ventures’ global efforts to invest in systemic change. The revenue-based structure of the loan shares risk with Maphlix and provides a flexible financing structure to support its growth and expansion needs. This type of investment product aligns with AV Ventures’ long-term strategy of providing innovative and catalytic capital to support growth-oriented small- and medium-sized enterprises (SMEs). These enterprises make up the “missing middle” of investment, as they are often too large to receive microfinancing but too small to attract funding from large traditional investors.

“Maphlix is a great partner because of the strong operational experience and track record of the management team and the significant untapped market opportunities we see in the horticulture sector in Ghana. The funding from AV Ventures will enable Maphlix to optimize its production capacity to respond to growing demand for its products, both locally and on the export markets, to drive its long-term growth and commercial success,” explains Zubeiru Salifu, Senior Investment Manager, AV Ventures.

Pangea Ventures
Albany STEAM Garden
279 Central Avenue
Albany NY 12206
USA
Media contact: Natja Igney

ABOUT PANGEA VENTURES:

Pangea Ventures accelerates the transformation of Africa’s agriculture sector through its support for West African agribusinesses. This transformation from subsistence agriculture to productive, profitable, innovative agribusinesses will improve food security while driving economic and job growth. Pangea Ventures identifies business opportunities with high growth potential, supports the investment readiness of enterprises, and connects entrepreneurs with global impact investors.
Visit Pangea Ventures’ website for more information: https://www.pangeaafrica.com/

ABOUT MAPHLIX TRUST GHANA:

Maphlix Trust Ghana Limited (“Maphlix”) produces and processes high-value, nutritious crops including sweet potatoes, okra, and other vegetables grownon its farm sited at Dzodze in the Ketu North Municipality of the Volta Region of Ghana. In addition, Maphlix operates in partnership with an expanding network of outgrower farmers throughout the region. Certified in compliance with Global G.A.P. standards, it exports its produce to the EU and other destinations. Maphlix’s growth strategy for 2022 is to add value to sweet potato and other crops which are currently exported in their raw forms. This is to reduce food waste and take advantage of its expanding production and raw material base.
Visit Maphlix Trust Ghana Limited’s website for more information: https://maphlixtrust.com/

ABOUT AV VENTURES:

AV Ventures is ACDI/VOCA’s for-profit subsidiary. AV Ventures provides innovative, catalytic financing to small and medium enterprises (SMEs) in West Africa and Central Asia. Such investments provide better economic opportunities for communities and generate social impact through inclusive, responsible supply chains.
Visit AV Ventures’ website for more information: https://www.acdivoca.org/about/affiliates/av-ventures/

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Pangea Ventures Helps Ghanaian Produce Exporter Maphlix Secure $700k Loan from AVV for Sustained Growth Strategy here

News-ID: 2329647 • Views: