AfricInvest will acquire a minority equity interest in Elephant Group, a Nigeria-based agricultural commodities company, via an issue of new shares.

The equity investment, subject to customary closing conditions, will be made via AfricInvest Fund III.

Abiola Ojo-Osagie, Senior Partner & Managing Director of AfricInvest in Nigeria, said: “We have identified a company led by entrepreneurs and a management team with a good knowledge of the domestic market."

"Through our partnership with the Elephant Group, AfricInvest is taking advantage of an opportunity to capitalize on Nigeria’s agricultural transformation agenda to build an enduring institution with a clear potential for growth and regional expansion," he said.

Founded in 1994, Elephant Group is the largest and fastest growing indigenous agri commodities company in Nigeria, where it imports, exports, markets and distributes rice, fertiliser and other agri commodities.

The company, which has also presence in Ghana, Cameroon, Senegal, Niger and Cote d’Ivoire, is currently ranked fourth in rice and fertiliser marketing with market share of 8% and 10% respectively.

Elephant Group owns extensive distribution and logistics infrastructure in Nigeria and is a critical link in the supply of main staple foods in Africa’s largest and fastest growing consumer market.

Over the last three years, Elephant Group has been focused on executing its backward integration strategy.

The Group is also a key player in the Growth Enhancement Support Scheme in Nigeria supplying fertiliser in 36 states of Nigeria.

The funds raised will be used to boost Elephant Group’s market share in agricultural commodities trading and to deepen penetration of agricultural commodities exports across selected markets in Africa.

The Group will also continue to strengthen its backward integration initiatives in the rice, crude palm oil and fertilizer value chain.

Tunji Owoeye, Founder and Group Managing Director of Elephant Group, said: “We are excited to partner with an Africa-focused investor with experience in the agricultural sector. The investment will enable the Company to benefit further from government’s drive to promote agricultural productivity in Nigeria."

"The investment will also allow Elephant Group to transform from an indigenous agricultural commodities company in Nigeria to a vertically integrated Pan-African player. This transaction will be the first ever private equity investment in the Nigerian agricultural commodities sector, and we view it a strong vote of confidence in the company," he said.

Standard Chartered Bank acted as sole financial advisor to Elephant Group on the transaction.