Published: October 5, 2012
Norwegian investment fund provides US$10mn to help Chayton expand in domestic market and eye new opportunities.
The Norwegian Investment Fund for Developing Countries (Norfund) has invested US$10mn in Chayton Atlas Investments, which develops and runs farms in Zambia.
Chayton’s strategy is to develop its farms into vertically integrated production hubs using advanced farming methods and irrigation, and to distribute in domestic and export markets. Zambia is the first hub the company has developed, where it focuses on wheat, maize and soya.
The company will use the funding from Norfund to buy new farms and businesses providing grain drying, storage, processing and distribution services. Its management team plans to expand the business into other markets in sub-Saharan Africa.
The deal gives Norfund a 21% stake in Chayton. The company’s controlling shareholder is Zeder Investments, which focuses on food and beverages in the agricultural sector.