Jacana Partners and Soros Economic Development Fund have made an undisclosed investment in DSM Corridor Group. Based in Dar es Salaam, Tanzania, DCG is a bulk cargo handling company.
Dar es Salaam, 30 September 2013: Jacana Partners, the pan-African SME private equity firm and Soros Economic Development Fund (SEDF), a non-profit private foundation, have invested in DSM Corridor Group (DCG), a bulk cargo handling business in Dar es Salaam.
The transaction marks both Jacana and SEDF’s first investments in Tanzania.DCG is the leading dry bulk cargo handling company at the port of Dar es Salaam. Founded in 2004, its services include ship to shore discharge of cargo, container stuffing and destuffing and logistical services for the forwarding of materials. The DCG terminal is the only purpose-built dry bulk cargo handling terminal in Sub-Saharan Africa and offers a secure, reliable and cost effective means of handling commodities for companies operating in East Africa.
The investment will finance the expansion of DCG’s storage capacity with respect to both volumes and the range of commodities. A new cargo handling site will contribute to the development of the regional trade corridor. The investment will have a significant social impact, helping to create up to 150 new jobs and will also increase port efficiency, thereby supporting growth of key sectors of the economy such as agribusiness, mining and construction.
Erik KOK, CEO of DCG said: “We look forward not only to the access to capital to continue to grow our business, but also the deep experience that the Jacana and SEDF teams bring to the table. Their value-add contribution was an important consideration for us in deciding to partner with Jacana and SEDF. The transaction marks an important milestone in DCG’s history as we continue on our journey towards becoming one of the leading dry bulk cargo handling companies in East Africa. This investment will allow us to accelerate our growth, releasing constraints on our business.”
Ezra Musoke, Partner at Jacana said: “Tanzania is a high-growth market with a flourishing SME sector. DCG is a prime example of the attractive investment opportunities that can be found in the country: a well-established business with a strong market position, long-term customer relationships and potential for further growth. DCG’s management team are highly experienced with deep contact networks and a strong track record of success in the industry. We are delighted to be partnering with them to provide capital and expertise to help the business grow to the next level.”
Cedric de Beer from SEDF said: “DCG is facing a number of new opportunities thanks to the rising regional importance of the port of Dar es Salaam, which not only serves Tanzania but is a gateway for exports and imports for several landlocked African countries. This, combined with the positive outlook of the sectors DCG serves such as mining, agribusiness and construction means there is high-growth potential for the company and significant social impact for the wider community.”
-ENDSAbout Jacana Partners:
Jacana Partners is a pan-African private equity firm that invests in entrepreneurs, builds successful SMEs and delivers sustainable financial and social returns. We do this because we are passionate about entrepreneurs as the key drivers of job creation and long-term economic development in Africa.
Jacana is uniquely structured to overcome the challenges of private equity investing in SMEs in SubSaharan Africa. Combining internationally experienced private equity veterans with highly skilled teams on-the-ground, Jacana has the experience, knowledge and resources to structure great deals, grow sustainable businesses and deliver superior returns. Jacana invests between $1-5 million in SMEs across a variety of sectors in six markets in West and East Africa (Ghana, Kenya, Liberia, Sierra Leone, Tanzania and Uganda). Jacana has committed $28 million to date in 23 portfolio companies, creating over 1,300 jobs. For more information, please visit www.jacanapartners.com.
About Soros Economic Development Fund:
The Soros Economic Development Fund (SEDF) is a non-profit private foundation that is part of the Open Society Foundations, a network of charitable foundations created by investor and philanthropist George Soros. SEDF supports economic development in post-conflict countries and in nations transitioning to democracy. We promote economic opportunities and access to information, products and services for underserved populations. We invest in sustainable businesses or initiatives that strive to alleviate poverty by creating jobs and revitalising deteriorating communities. Established in 1997, SEDF has over $200 million in investment capital and has a team of 15 people.
DCG is the leading dry bulk cargo handling company at the port of Dar es Salaam. Founded in 2004, it provides services to the dry bulk shipping and material handling community, including ship to shore discharge of cargo and container stuffing and de-stuffing, enabling quick and efficient movement of goods through the port of Dar es Salaam. The DCG bulk terminal is the only purpose-built dry bulk cargo handling terminal in Sub-Saharan Africa. DCG sees high demand for its services due to Dar es Salaam’s strategic location as a gateway to six landlocked countries (Burundi, Democratic Republic of the Congo, Malawi, Rwanda, Uganda and Zambia). Particularly high demand comes from the agriculture and mining sectors in Tanzania and the transport of goods from Dar es Salaam to Zambia, Congo and Malawi. For more information, please visit www.dsmcorridor.com.