Top US Bank Goldman Sachs Acquires Sh2.4 Billion Stake in Kenya’s Twiga Foods

Goldman Sachs, a leading US investment bank, has acquired a stake in Kenyan start-up Twiga Foods.

The deal will see Goldman Sachs pump $23.75 million (Sh2.44 billion) into Twiga Foods to help in its expansion plan in the country and Africa. This marks Goldman Sachs's first major deal in a Kenyan company.

Goldman Sachs becomes the latest investor to provide funding to Twiga Foods after International Finance Corporation (IFC), TLCom Capital, and French private equity fund, Creadev. 

Twiga buys fresh produce from a network of farmers across the country and delivers it to thousands of informal vendors.

“Goldman Sachs is getting a stake and it will be the lead institutional investor in Twiga. It is providing the bulk of the $23.75 million,” said Twiga CEO Peter Njonjo.
 
“This funding enables us to invest in our technology and organization to tackle the inefficiencies in Africa’s domestic food production and distribution," he added.

Njonjo was appointed the company’s chief executive in March this after stepping down as president of Coca-Cola West and Central Africa.

"We are delighted to be backing Peter and the highly capable team as they scale operations and drive sustainable access to lower quality food on the continent," said Jules Frebault, the Africa head at Goldman Sachs.

Established in 2014, Twiga operates a cashless platform where it receives fruit and vegetables from 17,000 farmers for direct delivery to over 8,500 vendors.

This model offers farmers a predictable rate for their produce, timely payments and avoiding the network of middlemen while assuring vendors of a reliable supply of produce.