-KH News Desk (cbedit@imaws.org)
In order to support the expansion of Synercore Holdings’ product line, Norfund, the Norwegian Investment Fund for developing nations, is investing US$4.7 million in the South African food ingredient company.
Since its founding in 2016, Synercore has specialized in the formulation, production, and distribution of food ingredients, particularly to firms that produce fast-moving consumer goods for the dairy and cereal sectors.
The company is certain that this development will increase the variety of ingredients it offers and give the dairy and cereal industries in South Africa and abroad access to low-cost products.
Similarly, Norfund is confident that the investment will be essential in luring major food corporations that favour importing food ingredients despite the nation’s developed food industry.
“By owning core ingredients in the baking and cereal industry, we believe Synercore will be able to formulate more tailored solutions to clients at the best price in the market, leading to further business development and reducing imports”, said Kemp, Investment Manager at Norfund.
Norfund also promoted import substitution, strengthened food security, increased product shelf life, which decreased food waste, and developed Synercore as a key local producer of food ingredients, thereby generating more highly trained jobs.
Two other businesses, Impilo and Sizwe, will be acquired by Synercore as part of the deal. Impilo primarily sells soy flour to the food, confectionery, and baking industries.
In order to enhance food security and safety on the African continent, Synercore has a strategy of investing in the future of the agricultural and food industries by luring in the top food formulators, product developers, researchers, and application specialists.
