Dutch firm gets Sh2.8bn for Kilifi tree growing venture

Capital Markets

Dutch firm gets Sh2.8bn for Kilifi tree growing venture

Komaza staff at the processing plant in Kilifi County on May 4, 2019. PHOTO | KEVIN ODIT | NMG 

A Kenya-focused Dutch start-up, Komaza has secured new Sh2.8 billion funding to expand its partnership with the smallholder farmers in Kilifi it has engaged in commercial tree farming.

The tech-based enterprise that has contracted 25,000 farmers in a six million exotic tree seedling project said its Series B equity financing was co-led by Novastar LPs AXA Investment Managers (through the AXA Impact Fund: Climate & Biodiversity) and the Dutch development bank FMO, with further participation by Mirova’s Land Degradation Neutrality Fund.

“This landmark Series B financing provides the firepower now to replicate and scale the business across Africa,” said Novastar Ventures founding partner Steve Beck.

Established three years ago under a Sh990 million financing plan, Komaza, chooses commercially viable tree species via a micro-forestry business model where farmers use their parcels of land to cultivate the trees for cash.

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