Abraaj Group exits first investment in Angola
The Abraaj Group has exited its investment in Fibrex, a manufacturer of high-density polyethylene (HDPE) and other low-pressure plastic pipe products used in the construction industry.
Established in 1966, Fibrex initially manufactured woven bags to transport agricultural materials and fertilisers. The company’s product line quickly evolved over time to products such as PVC and HDPE pipes for the construction industry.
Abraaj, through one of its funds, invested in Fibrex in 2007. The group’s close operational support has led to an upgrade in energy supply infrastructure, improved governance, accounting and reporting standards, and increased environmental efficiency in the company.
Over the course of Abraaj’s investment, Fibrex’s production volume increased organically by over 70 per cent. The company secured in 2010 the ISO 9001 certification, an internationally recognised award for quality management, confirming its adherence to the highest international standards. Fibrex’s production facilities were further upgraded with the recycling of by-products of the production process, including plastic sawdust and fragments, and the minimisation of noise contamination.
Davinder Sikand, partner and head of Sub-Saharan Africa at The Abraaj Group, says: “At Abraaj we have an unrivalled history of pioneering the private equity industry in Africa, where our strong on-the-ground teams penetrate relatively untapped markets and gain access to opportunities that often pass under the radar of investors that are not as well entrenched in these markets. We initiated our investment in Fibrex based on Angola’s strong macroeconomic conditions. The country, focused on rehabilitating its national infrastructure, showed rapid GDP growth and demonstrated significant demand for quality construction-related material and products which has helped Fibrex attain a market leading position in the country.”
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