Global Tea was founded in 1992, by Executive Chairman Nadeem Ahmed, as a trading firm and has
since grown to include tea blending, coffee, and macadamia plantations across East Africa. In the
region, the company trades under East Africa’s premier tea brands, Kericho Gold and Baraka Chai.
Global Tea is a supplier of choice to a variety of multinationals with products found in supermarkets and hospitality outlets across the world.
Global Tea is a major employer of women in Kenya and Malawi and supports the livelihoods of tens of thousands of smallholder farmers throughout the region. The Company’s products are FairTrade and Rainforest Alliance certified.
The proposed investment will assist Global Tea in building a new tea packaging facility in Mombasa, and support the group’s expansion plans in Africa.
Nadeem Ahmed commented “We are delighted by this new partnership with Si, IFU and Proparco. Global Tea’s unceasing commitment to excellence in our products has created a great deal of pent-up demand from our customers and we are looking forward to deploying the investment to expand our value addition capabilities in Kenya, and to grow further throughout Africa – creating new jobs, new products, and better serving our customers. We are thrilled to have such a reputable and capable consortium of investors join us as we embark on this next stage of growth. This commitment by two European development finance institutions follows a debt raise we concluded from the International Finance Corporation.”
Tibor Asboth, Deputy Head of Equity – Africa & Middle East for Proparco, noted “Proparco has long been supporting the growth of the agricultural sector in East Africa in order to strengthen its impact on job creation and sustainable development. Through our investment in Global Tea, we will support a regional champion known for the quality of its tea, coffee and macadamia products. We are proud to contribute to its ambitious growth strategy, which will benefit both smallholder farmers and consumers.”
Thomas Hougaard, VP Sub Saharan Africa, said, IFU, “We are very pleased to provide growth capital to Global Tea as the company is a perfect match with our focus on supporting sustainable businesses in the African food sector. The company can now grow the business further and increase its footprint by creating new jobs and supporting more smallholder farmers, which will have a concrete impact on peoples’ lives. We are looking forward to take Global Tea to the next level.”
Ameel Somani, CEO of Si also noted “As Si’s maiden African growth investment, we could not be more pleased to be working with the Ahmed family and this consortium of leading investors. Global Tea presents a truly differentiated investment opportunity with its market leading product portfolio, vertically integrated operations, and exceptional management team.”
The investor consortium was advised by Trinity LLP, and Global Tea was advised by Anjarwalla & Khanna, Stephenson Harwood and KPMG.
The closing of the transaction is subject to regulatory approvals and other customary conditions.