Privamnuts secures US$3M funding to increase macadamia manufacturing, drive sustainability

KENYA – Kenyan macadamia nut processor and exporter Privamnuts has secured a KES387 million (US$3 million) funding to reinforce its manufacturing capability.

The funding, obtained from the ESG First Fund, a partnership between Aavishkaar Capital and the German state-owned funding and improvement financial institution (KfW), will even assist the corporate’s sustainability initiatives.

The ESG First Fund, with a give attention to Africa and Asia, is a US$250 million fund that seeks to generate each superior Environmental, Social, and Governance (ESG) outcomes and industrial returns, whereas delivering constructive social influence.

Privamnuts, a serious participant in Kenya’s macadamia business, exports to Europe, the USA, and the Far East.

Privamnuts works with roughly 10,000 smallholder farmers, sustaining a powerful relationship by providing enter assist, coaching on good agricultural practices, and guaranteeing well timed funds.

These initiatives have helped construct a loyal and constant provide base, guaranteeing the corporate’s regular development and success.

Patrick Mbogo, founder and Managing Director of Privamnuts, highlighted the corporate’s resilience throughout difficult market circumstances, together with the COVID-19 pandemic and a interval of record-low international macadamia costs in 2023.

“We’re excited to be partnering with Aavishkaar Capital, with whom our targets are aligned. Privamnuts and Aavishkaar Capital consider in creating high-quality jobs that may enhance the financial and social well-being of farmers and staff, uplifting communities whereas delivering high-quality agricultural and meals merchandise to international prospects,” Mbogo stated.

Kenya is the world’s third-largest exporter of macadamia nuts, benefiting from favorable agro-climatic circumstances in key rising areas.

This 12 months has introduced a big enhance to macadamia farmers, with a threefold improve in costs. Farmers are actually receiving between US$0.69 and US$0.9 per kilogram of macadamia nuts, a considerable rise from final 12 months’s US$0.21 per kilogram.

The worth surge adopted the suspension of Part 43 of the AFA Act in November 2023, which had beforehand banned the export of in-shell macadamia nuts.

Nevertheless, the MACNUT Affiliation, representing Kenyan macadamia processors, not too long ago referred to as on the federal government to limit the direct export of uncooked, unprocessed nuts.

The affiliation warned that this apply has led to monetary losses for native processors, decreased farmer incomes, and widespread job losses within the sector.

Within the first half of 2024, Kenya’s macadamia kernel exports had been valued at KES3.3 billion (US$25.63M), considerably decrease than earlier years, when exports reached KES6.9 billion (US$53.59M).