Amid rising demand for South African raisins after water shortages and rising labor costs in the United States hit global supplies and production levels, Norway’s investment fund for developing countries, has announced an $8 million (R120 million) investment in South African raisin processor and distributor Redsun. The company based in Keimoes in the Northern Cape, an area where around 90% of South Africa’s raisins are produced ws set up in 2009.
Norfund’s investment will enable Redsun to double its current capacity by building the only raisin processing plant in Vredendal apart from creating jobs by investing in a rural part of South Africa where manufacturing job opportunities are scarce and also increase the company value. Vredendal also enjoys logistical advantages as it is based in a different host region with a unique climate close to Cape Town, one of Africa’s main ports.
Redsun, located along the banks of the Orange River, has a significant market share in the $33bn (R490bn) healthy snacks market. It is expanding its operations with two new state-of-the-art facilities that will help it to enhance its share of the growing market. The company is majority-owned by Denver and Stellenbosch-based private equity fund 1K1V. 1K1V’s portfolio companies, including Redsun, have exported over $60M worth of products from Africa to over 35 countries.
Read Also; https://trendsnafrica.com/south-africa-emerging-as-the-preferred-destination-of-investors/
https://trendsnafrica.com/imf-says-the-south-africa-economy-is-yet-to-gain-momentum/
