Edson Baraukwa | Africa Guardian
From meat processing in Rwanda to fruit and vegetable distribution in Tanzania and agrovet supplies in Malawi, Africa Eats is reshaping the continent’s agricultural value chain. This investment holding company, modeled after Warren Buffett’s Berkshire Hathaway, has taken a focused approach to African agribusiness. In December 2024, it marked a significant milestone by listing on the Stock Exchange of Mauritius.
Jaco Maritz, editor-in-chief of How We Made It in Africa, interviewed Luni Libes, the founder and CEO of Africa Eats, to delve into the company’s innovative approach and its vision for the agribusiness sector in Africa.
Adopting the Buffett Approach for African Agribusiness
Luni Libes envisions Africa Eats as a Berkshire Hathaway for Africa’s agricultural sector. The company holds stakes in 22 businesses, including East Africa Foods in Tanzania, Rwanda’s Paniel Meat Processing, and Uganda’s Geossy fish farms. Its philosophy mirrors Buffett’s: invest in promising companies, retain those investments indefinitely, and drive shareholder value through growth and capital gains.
Libes emphasizes Africa Eats’ divergence from traditional private equity. “Once we invest, we don’t plan to sell,” he says. The company also adopts a hands-on approach to supporting its portfolio companies, a departure from Buffett’s more passive strategy.
Origins of Africa Eats
Africa Eats emerged from Fledge, a Seattle-based venture fund and accelerator founded by Libes in 2012. Over time, the growing influx of African agribusiness applications led to the creation of Africa Eats in 2020, spinning out key Fledge-backed companies into the new entity. Since its inception, the portfolio has achieved a 52% annual revenue growth rate, with total revenues exceeding $36 million by 2023.
In December 2024, Africa Eats and two portfolio companies, Ziweto Enterprises and Paniel Meat Processing, debuted on the Stock Exchange of Mauritius. The company plans to take more businesses public while continuing to invest in new opportunities.
Standout Portfolio Companies
East Africa Foods (Tanzania): Founded by Elia Timotheo with $4,000 in savings, East Africa Foods has grown into Tanzania’s largest aggregator of fruits and vegetables. By 2023, its annual revenue reached $14 million, a testament to its innovative value chain strategies, such as introducing ripened bananas to the local market.
Paniel Meat Processing (Rwanda): From humble beginnings with a single hand-crank sausage machine, PMP is now a leading meat processor in Rwanda, with revenues of $1.6 million in 2023. The company has also spun off its logistics arm, Truk Rwanda, which generated $6 million in 2023 by addressing gaps in cold chain and trucking services.
Central Park Bees (Tanzania): Known for its Swahili Honey brand, Central Park Bees has transformed beekeeping in Tanzania. With Africa Eats’ support, it grew revenue from $275,000 in 2018 to $2.7 million in 2023, becoming the company’s largest exporter with clients across Europe, Asia, and North America.
Ziweto Enterprises (Malawi): Initially a small agrovet shop chain, Ziweto has expanded into animal feed production and plans to enter poultry farming. It became Malawi’s largest agrovet supplier and reported revenues of $1.3 million in 2023.
Challenges and Future Plans
Africa Eats faces challenges such as limited capital for scaling operations and navigating diverse regulatory environments. However, Libes remains optimistic. The company’s strategy includes preparing portfolio businesses for public markets and reinvesting proceeds into new ventures.
“We aim to fill gaps in the agribusiness sector and grow companies that address critical needs,” Libes says. With its innovative approach and impressive track record, Africa Eats is paving the way for sustainable investment in African agriculture.
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