AfricInvest, a pan-African mid-cap-focused private equity firm, has invested in Silafrica Plastics and Packaging International, an East African plastics and packaging group, via its AfricInvest Fund III.

Silafrica has been operating since the 1960s, providing plastic and packaging solutions to a wide variety of sectors for both corporate and retail consumers.

The group has operations in Tanzania, Kenya, Ethiopia, Uganda and India.

Products manufactured by Silafrica include water tanks, crates, preforms, tubs, containers, pens, chairs, pallets and kiosks.

Prior to the investment, Silafrica was wholly-owned by the Sumaria Group, a conglomerate with interests in numerous industries across Africa.

Through this investment, AfricInvest and Silafrica will aim to consolidate Silafrica’s position and brands in its current markets, expand its product range and offering, as well as to expand geographically to capture a higher share of the significant growth expected in the plastics and packaging sector across African markets.

Akshay Shah, Managing Director of Silafrica, said: “The partnership with AfricInvest will help us consolidate our position and execute Silafrica's strategy to expand its manufacturing footprint to ten countries in Africa.”

“We believe in building strong partnerships with our employees, customers, suppliers and partners, and we certainly see Africinvest as an ideal partner to add strategic value to our business growth strategy,” he said.

According to Skander Oueslati, Co-Head of Sub-Saharan Africa at AfricInvest, this partnership will not only allow Silafrica to leverage AfricInvest’s infrastructure and footprint in Africa, but will also take advantage of AfricInvest's long experience and expansive network.

AfricInvest Fund III had its first close in October 2014, raising €154m from development finance institutions and other institutional investors.

The group began fundraising for their third fund in July 2013.

AfricInvest Fund III is a 10-year fund with a target size of €200m.

The Fund invests in a broad range of sectors with a strong focus on companies manufacturing for export and those aiming to expand at the regional or continental level.

Targeted investments include sectors such as IT and telecoms, FMCG, services, health, education, transport and agribusiness.

George Odo, Senior Partner and MD East Africa at AfricInvest, said: “This transaction exemplifies AfricInvest’s core strategy: investment in a sector where we already have considerable knowledge, with a strong and credible local partner like the Sumaria Group, working with a business that is already a market leader and is aiming to become a regional champion.”