Ghana-based tilapia-farming firm Tropo Farms has received USD 10 million (EUR 9.3 million) from U.K. agribusiness investor AgDevCo to support the firm’s expansion plans.
AgDevCo, which specifically invests in African agriculture and aquaculture projects, signed the long-term investment with Tropo Farms at the end of October, providing the backing needed for the fish producer to get new projects underway, including an expansion of its processing facility and the opening of new distribution centers in Ghana.
Tropo Farms CEO Francisco Murillo said AgDevCo’s financing marks a major milestone for the company, providing Tropo with an opportunity to expand its logistics and distribution network while offering more services to seafood consumers in regions where the company operates.
“This will allow us to grow our production capacity from about 15,000 metric tons (MT) – where we expect to finish this year – to 20,000 MT, but the plan is to continue to grow to at least 30,000 MT in the next five years,” Murillo said.
Murillo told SeafoodSource that Tropo will also invest the loan into building a new tilapia-processing facility, which has a capacity “well above the target of 30,000 MT per year for the next five years.”
Murillo said the loan will be invested in opening two new distribution centers, the exact locations of which have yet to be decided, and bolstering its logistics network, such as acquiring more trucks.
Other components of Tropo’s expansion include staff housing, wastewater treatment systems, and power infrastructure.
“Investing in Tropo Farms supports production of an important protein source in Ghana, contributes to import substitution and promotes economic growth,” AgDevCo Investment Director for West Africa Kweku Koranteng said in a statement.
Established in 2009, AgDevCo has made over 60 investments worth over USD 280 million (EUR 267 million) in such countries as Tanzania, Mozambique, Ghana, Côte d'Ivoire, Zambia, Malawi, Uganda, Rwanda, and Sierra Leone. The firm particularly provides private capital to farming and processing businesses, aiming to offer downstream benefits to smallholder farmers and local communities
Tropo Farms employs over 900 people and supplies fish to domestic, local markets via nearly 3,000 market traders, according to Murillo.
