The Euphrates Agri fund, managed by Eos Capital, a Namibian private equity firm with N$1 billion in assets under management, has acquired a minority stake in the Namibian business of Cherry Irrigation for an undisclosed amount. The investment will be used as growth capital within the Namibian business with a view to increase irrigated land in the country and thereby improve food production in Namibia.
Cherry Irrigation was established in South Africa in 1987 with irrigation design as the focus service. The company’s service offering now includes irrigation automation, design and installation services. Cherry Irrigation is ISO 9001, 45001, 14001 and 27001 certified and a member of the South African Irrigation Organisation (SABI). Cherry Irrigation SA has grown from three employees in 1987 to more than 70 permanent staff members today. The company has its head office in Grabouw, South Africa, with two additional business units in Namibia and Angola.
The Namibian business was opened in 2020 and has seen strong growth since, despite Covid. Eos expects Cherry Irrigation to create ~20-25 permanent jobs and ~40-50 temporary jobs when installing large scale irrigation systems on farms.
Frederico van Wyk, Eos Capital Associate Principal said: “We are excited about the growth potential of the business given the need for Namibia to increase irrigation to protect itself from the impacts of climate change. This will improve food security of the country as well as increase the export of high value crops. Not only will this bring attractive returns for investors but will also have a sustainable positive impact on the country”.
This represents the first deal for Eos under the banner of its Euphrates Agri Fund, which is the first Namibian agri private equity fund. Euphrates targets agriculture investments across the value chain through equity funding with the aim of generating long-term, stable returns for its investors and having a sustainable impact in Namibia on climate change, wealth inequality and empowerment of women. Eos also manages the N$500 million Namibian Infrastructure Development and Investment Fund (NIDIF) and the N$460 million Allegrow Fund, a general private equity fund.
Peter Cherry established Cherry Irrigation in 1987 with irrigation design as the focus service. When Charles, Peter’s son, joined the company in 1992, the service offering broadened to include automation, design and installation services.