Sahel Capital, a prominent impact investment firm focused on agribusiness in sub-Saharan Africa, has announced the disbursement of a $1 million loan facility to Persea Oil, a fast-growing avocado oil processing company operating in Kenya and Tanzania. The funding was provided through Sahel Capital’s Social Enterprise Fund for Agriculture in Africa (SEFAA), and is structured as two equal tranches: $500,000 in working capital and $500,000 allocated for capital expenditure.
Persea Oil plays a critical role in East Africa’s avocado value chain by offering a dependable off-take market for smallholder avocado farmers. The company operates dedicated processing lines for both organic and conventional avocado oil, ensuring traceability and quality control across its supply chains. Currently, Persea sources directly from over 800 smallholder farmers, providing them with advance payments that cover approximately 15% of procurement costs ahead of the harvest season—an initiative that helps stabilize farmer incomes and improve planning.
The company exports 100% of its avocado oil output, with Spain and other European countries serving as its primary markets. Demand for avocado oil has surged globally in recent years, driven by its growing popularity in the food, cosmetics, and pharmaceutical industries due to its health benefits and versatility.
“The global avocado oil market has experienced significant growth, and Kenya is well-positioned to capitalize on this trend thanks to its favorable climate and fertile soils,” said Zakayo Ngetich, Vice President for East and Southern Africa at Sahel Capital. “We are pleased to continue our partnership with Persea, a company that has shown impressive growth and impact since our initial investment in 2024.”
The funding will enable Persea Oil to expand its processing capacity, improve supply chain efficiency, and deepen its engagement with smallholder farmers. The capital expenditure component is expected to support the acquisition of new equipment and infrastructure upgrades, while the working capital will help the company manage seasonal procurement and production cycles more effectively.
Legal advisory for the transaction was provided by JMK Partners Advocates, who supported SEFAA in structuring and executing the deal. This investment aligns with SEFAA’s mission to support socially impactful agribusinesses that enhance food security, create rural employment, and promote inclusive economic growth across Africa.
