UGANDA – In a strategic move to boost its presence in the African dairy sector, EXEO Capital, through its Agri-Vie Fund II, has committed US$10 million to Amos Dairies, a prominent dairy processor based in Uganda.

The investment reflects EXEO Capital’s confidence in Amos Dairies’ competitive edge and its pivotal role in the value-added African dairy market.

“Amos Dairies has succeeded in gaining a competitive edge in the market and demonstrated its value as a major player in the value-added African dairy sector,” Paul Nguru, Partner at EXEO Capital, stated expressing the firm’s optimism.

EXEO Capital has a successful track record of investments in dairy processors, including Fairfield Dairies and Fairview Cheese in South Africa and Dairyland in Kenya.

Amos Dairies boasts a product portfolio comprising nine items, including ghee, butter, casein, skimmed milk powder, whole milk powder, whey permeates, whey concentrate, instant milk powder, and extended shelf-life milk.

Notably, the production of casein, a crucial milk protein used in various dairy products, provides Amos Dairies with a significant competitive advantage.

In addition, approximately 90% of Amos Dairies’ revenue is derived from exports to markets such as Egypt, Kenya, India, and the United States.

Seven of the nine products cater to the export market, while the remaining two serve both local and export markets.

This dual-market approach enables Amos Dairies to access dollar revenue, acting as a natural hedge against foreign exchange risks for both the company and EXEO’s portfolio.

The investment comes at a strategic time for Uganda’s dairy industry, with the Dairy Development Authority (DDA) announcing the commencement of Uganda’s first official dairy exports to Algeria in October 2023.

This follows a dairy trade agreement signed earlier in the year, allowing Uganda to export milk products valued at approximately US$500 million.

The initial phase will focus on powdered milk, with Amos Dairies, along with Pearl Diaries and Brookside Dairies, being among the three selected companies involved in this significant trade partnership.

EXEO Capital’s investment in Amos Dairies aligned with the broader trend of expanding its footprint in the African dairy sector, leveraging Amos Dairies’ growing export capabilities and contributing to the company’s continued success in the industry.