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TLG Capital deploys funds into Ugandan agri-food sector

TLG Capital has furthered its Ugandan portfolio by signing an agreement to acquire a 20 per cent stake in Vero Food Industries, whose primary focus is the production of mineral water and rice.

Due to start operations in the next couple of months, Vero Food Industries is set to be among the largest producers of these products in the region, with the ability to produce over 42,000 bottles of mineral water a day.

One of the main aims of the company is to promote and strengthen indigenous food production with the view of increasing local production. This in turn will allow for a shift away from reliance on international imports while creating sustainable supplies, a market for local produce and employment opportunities.

Vero Food Industries is aiming to benefit from both Uganda’s resources and the growing middle class population.

This investment is TLG’s second in Uganda following its first in Quality Chemicals Industries.

A spokesman for Vero Foods says: "We are delighted to have TLG Capital on board with us as we move forward with our expected growth plans; Vero Foods is committed to becoming one of the largest food and beverage players in the East African market and we will build towards that goal with TLG Capital."

Zain Latif, principal of TLG Capital, says: "Since the 1990s Uganda has been one of Africa’s leading performers with easily cultivated land and close links to neighbouring countries helping to support growth. Its upcoming transition to an oil producer will have a great impact on growth rates and impact positively on the emergence of a burgeoning middle-class, who will in turn create more demand for everyday essential items such as water and rice."

TLG Capital was represented by local legal counsel MMAKS Advocates, led by Philip Karugaba from the firm’s Kampala office.

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