Spear Capital has announced additional backing for Arkay Plastics, allowing this portfolio company to expand into new territories through the company’s Malawian operations.

“Following the industry momentum for FMCG in Africa in recent years, we are thrilled to be able to add further capital to grow our investment portfolio in Arkay,” said Martin Soderberg, Partner at Spear Capital, “Our investment will enable growth in sales through the development of new products and expansion of production capacity enabling the company to service existing local and export markets while strengthening ESG principles.” 

The deal will enable Arkay to become a leading player with cross-region market dominance in Africa’s manufacturing sector.

Spear’s additional funding infusion in Arkay Plastics is pertinent to the growth potential of fast-moving consumer goods (FMCG) companies in Southern Africa.  

Spear invested in Arkay Zambia and Mozambique's operations in 2020, and despite the persistence of a COVID-19-related global economic downturn and the negative impact of geopolitics on the business environment, SPEAR has increased its investment value by 48%.

The transaction also underlines Spear’s unwavering commitment to its continued support of business founders. 

Arkay is regarded as the leading brand name for plastic houseware, furniture, industrial products and packaging in Malawi, Zambia and Mozambique, with distinct segments in retail, exports, packaging, and crates.

The business is an approved supplier with reputable international organisations. Spear’s drive to increase Arkay Plastics’ production capacity will enable the company to fulfil larger orders and prioritise the company’s sustainable manufacturing growth through environmental impact and waste reduction.

Chetan Kotecha the Director at Arkay, said : “Spear has demonstrated its commitment to assist us with the funding addition in Malawi.  The new capital injection will give our business a strategic financial boost to expand operations while allowing us to accelerate our sustainable plastic production.”