Pearl Dairy secures US$35M for regional expansion in East Africa

UGANDA – Pearl Dairy Farms, a leading dairy processor in East Africa, has secured US$35 million in debt financing to fund its regional expansion.

The financing, arranged by advisory firm Delphos, comes from the International Finance Corporation (IFC) and FMO, the Dutch entrepreneurial development bank.

This funding will be used to upgrade and increase capacity at Pearl Dairy’s powdered milk plant in Uganda and to acquire a packing facility in Kenya.

The expansion is expected to substantially impact the dairy value chain in both countries, highlighting the growing significance of the dairy sector in East Africa’s economy.

In addition, Pearl Dairy plans to implement a comprehensive Dairy Development Program, supported by the IFC, which aims to benefit over 15,000 local farmers. This program will provide training on best practices and access to data, helping farmers boost their productivity and profitability.

Amit Sagar, CEO of Pearl Dairy Farms, described the financing as a significant milestone that demonstrates the company’s commitment to driving growth and excellence in the dairy sector.

The deal highlights the role of the agricultural sector in Uganda’s economy, where agriculture employs approximately 72% of the population and contributes about 24.1% to the GDP.

The country’s dairy sector is now valued at US$3.8 billion, with exports generating US$106.2 million annually.

Bart Turtelboom, Chairman and CEO of Delphos, emphasized the sector’s potential for inclusive growth, stating that investing in modernizing the dairy value chain creates significant economic returns for the community and the country.

This transaction aligns with broader efforts to enhance food security in the region. By increasing access to dairy products and strengthening the supply chain, the expansion is expected to help the sector better withstand macroeconomic shocks.

The financing for Pearl Dairy Farms represents a continuation of Delphos’ active involvement in African agriculture.

Over the past 37 years, the firm has raised over US$4.7 billion for transactions across the continent, contributing to the United Nations’ Sustainable Development Goal 2, which aims to end hunger and achieve food security.

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