ECP makes two times return on African agribusiness investment

ECP's initial investment, which was made in September 2003, provided SOMDIAA with working capital to expand its existing business and funds to acquire flour milling companies in Cameroon and in Réunion Island.

Through its plantations in Cameroon, Chad and the Republic of the Congo, SOMDIAA produces approximately 80 per cent of the consumer and industrial sugar sold throughout Central Africa, according to the firm.

Tom Gibian, CEO of ECP, said, 'Arable land is one of Africa's most significant natural resources. When combined with abundant labour, African agricultural commodity producers, such as SOMDIAA, are able to be among the lowest-cost producers by global standards. In addition, the outlook for growth remains positive as local and global markets continue to expand, more land is cultivated and developed, and agricultural yields and production efficiencies improve.'

Hurley Doddy, CEO of ECP, added, 'Throughout ECP's holding period, we helped SOMDIAA expand and increase the scale of its core sugar and flour businesses through capital investment and strategic acquisitions. We also helped increase productivity and profitability by improving processes.'

The investment in SOMDIAA was made through ECP's $407m AIG African Fund Infrastructure Fund, which was established in March 2000.

ECP's previous investments in the agribusiness sector include the firm's 3.4 times initial investment divestiture from natural rubber company Société Internationale de Plantations d'Hévéas.

ECP has invested in sectors including telecommunications, natural resources, agribusiness, transportation, and power and water.

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