Closing of USD 11m CMA Facility with African Milling Limited in Zambia
In August 2018, Samawati Capital Partners supported the Africa Agriculture and Trade Investment Fund in closing its latest transaction, a USD 11m CMA facility to African Milling Limited (AML) in Zambia. AML is an established family business that has been running a wheat and maize mill since 2006. This collateral-based facility, the first of its kind for AATIF, will enable AML to purchase wheat and maize locally from smallholder and commercial farmers in Zambia.
This investment is in line with AATIF’s objectives of fostering local value addition and regional trade of key staple foods. Maize will be processed into breakfast meal, roller meal, and maize bran used for stock feed, while wheat will be processed into wheat flour for human consumption and wheat bran used as livestock feed. Final products will be packaged and sold on the local and regional markets in East and Central Africa.
The working capital and CMA facility has subsequently been renewed on an annual basis from April 2019, maintaining the same structure, while crowding in other financiers through syndication of the facility. AML has contributed to local value addition through its local processing facilities for maize and wheat and further engages in regional trade with export to markets such as DRC and others.