Eos Capital, a Namibian private equity fund manager, announces the acquisition of shares in Cherry Irrigation, an irrigation systems provider based in Grabow, South Africa. The deal, made under the banner of its Euphrates Agri Fund, aims to increase the amount of irrigated farmland in Namibia in the face of drought.
Minority shares in South Africa’s Cherry Irrigation are now held by Eos Capital, a Namibian private equity firm with assets under management of N$1 billion, more than US$64 million. No information was disclosed on the value of the shares purchased by Eos Capital. But it is a significant transaction that will enable Cherry Irrigation to bring new irrigation systems to market. The deal was done through Euphrates Agri Fund, one of Namibia’s largest agricultural private equity funds managed by Eos Capital.
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The equipment is expected to help increase the amount of irrigated farmland in Namibia. The country, already known for its arid climate, is also hit by drought, which dries up water reserves. This situation is causing concern among the population and farmers, mainly in the north of Namibia, who are forced to share their resources (water and pastures) with wild animals. This has led to food insecurity.
Large-scale irrigation systems for farms
According to the Namibian government, about 500,000 Namibians out of a population of 2.4 million do not have sufficient access to food due to the drought. Cherry Irrigation will evaluate the best on-farm irrigation technology identified by the Namibian authorities before designing the systems. The company will also install the equipment. In addition to improving crop yields, Namibia’s goal is to increase the export of high-value crops to improve the country’s competitiveness and boost its economy. However, it will be necessary to focus on crops that consume less water to preserve the available resource.
“We also expect Cherry Irrigation to create between 20 and 25 permanent jobs and 40 to 50 temporary jobs when installing large-scale irrigation systems on farms,” says Eos Capital.