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Newman Foods Limited, a Ugandan agro-processor, has received a $3 million mezzanine loan from AgDevCo Ventures, the early-stage investment arm of African agriculture investor AgDevCo.
Newman’s will use the loan to expand its processing capacity and widen its range of nutritious foods. It also plans to bring more smallholder farmers into its supply chain.
“This investment is a vote of confidence in what Ugandan farmers and a Ugandan brand can build together. It gives us the capacity to meet growing demand, to buy more from the thousands of farmers who supply us, and to put more wholesome, Ugandan-made snacks on the table. AgDevCo Ventures understands agribusiness and shares our long-term view, and that makes them the right partner for our next stage of growth,” said Ssegujja Nasser, Managing Director at Newman Foods.
Newman Foods, also known as Newman’s, turns locally grown crops into value-added food products. It also packs fresh fruits and vegetables. The company buys raw materials from more than 3,000 smallholder farmers across Uganda and supplies thousands of formal and informal retailers.
What began in a converted garage in Makindye, Kampala, has grown into a strong and reliable player within Uganda’s agricultural value chain.
Today, the company employs over 300 dedicated people and specialises in value-added agricultural products, with Newmans Snacks as its flagship brand.
The company aims to promote sustainable farming practices, create meaningful job opportunities, and showcase Ugandan quality on a global scale.
“What Nasser has achieved in building Newman’s, a locally owned business with deep roots in Ugandan farming communities, is genuinely impressive. We look forward to working closely with the management team as they scale up production and increase accessibility of affordable, quality foods in Uganda and across the region,” said Christine Mwangi, Head of AgDevCo Ventures.
AgDevCo Ventures is an early-stage investment vehicle within the AgDevCo group. It is backed by first-loss capital and concessional funding from development partners.
It invests $1 million to $3 million in agri-SMEs across East Africa and provides expert support alongside the capital. Its portfolio targets a high share of Black African-owned and led businesses, as well as businesses owned and led by women.
The announcement comes a couple of months after announcing a first close at $49 million to invest $1–3 million in farming and agri-processing companies across East Africa.
Earlier this year, AgDevCo received an A‑ issuer credit rating with a stable outlook from S&P Global Ratings, making it one of only a handful of development‑focused investment vehicles globally to achieve an investment‑grade rating.
