Philafrica Foods has sold its soya oil crushing plant to a majority BBBEE-owned investor, with Verdant Capital acting as financial advisor, as part of AFGRI's strategy to concentrate on core agricultural services.

Target Information

Philafrica Foods (Pty) Ltd. (“Philafrica”), a subsidiary of AFGRI Group Holdings (“AFGRI”), has successfully divested its soya oil crushing plant, operating in the market under the names Nedan, Marathon, Soya Ya Ka, and Promax (soya oil cake). This strategic move highlights Philafrica's commitment to optimize its portfolio and broaden its investment focus. Based in South Africa, Philafrica is active in food processing and has expanded its footprint to encompass regions such as Mozambique, Ghana, and the Ivory Coast, emphasizing its goal of enhancing food sourcing and production across the African continent.

Industry Overview in South Africa

The agricultural sector in South Africa plays a crucial role in the nation's economy, acting as a significant source of employment and food production. The food processing industry, which includes firms like Philafrica, is vital for the transformation of raw agricultural products into consumable goods, contributing to the stability and growth of the country’s food supply chain.

Recent years have seen a heightened focus on sustainability and efficiency within the sector, driven by growing consumer demand for transparency regarding food sourcing and production practice