Impact investment company Goodwell Investments has pumped EUR150 million into SOUK Farms, a leading grower and exporter of fresh horticultural produce from Rwanda.
Goodwell says it provided the funding through uMunthu II, the firm’s fund that focuses on scalable, early-growth stage businesses in Africa as it seeks to advance inclusive growth.
The funding will enable SOUK Farms to scale its sustainable agricultural business in Rwanda and create resilient systems and value chains to benefit local farmers and are communities.
SOUK Farms, which was founded in 2019, is a significant player in Rwanda's agricultural sector boasting of a vast network of horticultural outgrowers and consumers in Rwanda.
SOUK Farms Founder and CEO Seun Rasheed says the strategic partnership with Goodwell provides SOUK Farms with the necessary capital to pursue its ambitions at a wider scale.
“Our partnership with Goodwell will drive a huge impact not only for the growth of SOUK Farms but also for the farmers and the communities we work with as we continue to offer solutions that improve incomes and create employment while also implementing education and outreach programs for youth and women,” stated Rasheed.
SOUK Farms works with more than 1,200 farmers in Rwanda, with 71 per cent of them being women, and says its business model has improved the earnings of outgrowing farmers.
“We are proud to support the company in this exciting stage of their business growth, and look forward to seeing how they continue to innovate in the agricultural space,” said Goodwell Investments Investment Manager Judith Ngonyo.
She added, “With this investment, we are also pleased to mark our entry into the Rwandan market, further expanding Goodwell's presence in East Africa.”
The investment by the impact investment company comes when SOUK Farms is seeking to scale up its success, operations and productivity in Rwanda and boost the country’s farmers.
Goodwell Investments focuses on inclusive growth in sectors providing basic goods and services and income generation opportunities to underserved communities in Africa and India and has teams in Kenya, Nigeria, South Africa and the Netherlands.
On the other hand, SOUK Farms grows and exports high-quality horticultural produce and serves markets across Europe and the Middle East, as well as consumers in Rwanda.
