Operational diligence for SGI Frontier Capital
SGI Frontier Capital was looking to invest US$ 1-5 million in one of the leading dairy processors in Ethiopia, Family Milk, and needed support in conducting operational due diligence.
We analyzed the company’s logistics strategy, and assessed the relative cost-benefits of different distribution channels. The recommendations helped the investor capture additional margin by guiding the modernization of operational practices to improve distribution efficiency.
The investment helped Family Milk to set up extended shelf life (ESL) and ultra-heat temperature (UHT) equipment, the first in Ethiopia, to increase production four-fold and facilitate the introduction of extended shelf life production lines.
This engagement was executed through USAID’s East Africa Trade & Investment Hub
The investment was profiled in the EAVCA Private Equity Case Study Compendium publication, which showcases the positive contribution of private equity to sustainable economic growth and development in the East Africa region.