- Pepea’s investment will provide Kenya-based Gaea Foods with the working capital necessary to meet growing demand from both new and existing customers.
- This, in turn, will enable the company to source from a larger number of smallholder farmers, further strengthening the local agricultural economy.
- Launched in 2023, Pepea Fund was created to provide funding for early-stage companies.
Gaea Foods, a Nairobi-based potato processing company, has become the first-ever investment of Pepea, an impact fund from Oxfam Novib managed by Goodwell Investments, marking a historic milestone for the fund
This move not only highlights the potential of Gaea Foods in the B2B market but also underscores Pepea’s focus in fostering sustainable and inclusive growth in East Africa. Gaea Foods is a pioneering female-led business focused on Kenya’s potato value chain. By providing venture debt to Gaea Foods, Pepea aims to empower smallholder farmers, enhance local value chains, and promote gender equity within the industry.
Pepea Fund vision and focus
Launched in 2023, Pepea Fund was created to address a pressing need in the East African entrepreneurial ecosystem: the scarcity of funding for early-stage companies with high growth potential but limited access to traditional financial resources.
With a focus on small- and medium-sized enterprises (SMEs) that contribute to a greener, fairer, and more inclusive society, the EUR 20 million fund leverages the complementary strengths of Oxfam Novib and Goodwell Investments. By supporting these businesses, Pepea aims to drive positive social impact while also achieving financial returns.
Over the past year, Pepea’s investment says it has reviewed hundreds of proposals, finally identifying Gaea Foods as a prime candidate for its first investment. This decision reflects Pepea’s broader mission to back businesses that align with its “fair, green, and inclusive” investment mandate.
Gaea Foods: A trailblazer in potato processing
Founded in 2009 by Irene Mwangi, Gaea Foods has carved out a niche in the potato processing industry, serving as a critical link between smallholder farmers and major B2B clients in Kenya.
Initially trading in whole potatoes, Gaea Foods has since evolved to become a leading supplier of peeled and cut potatoes to fast-casual restaurants such as Steers and Nando’s in Nairobi.
Under Mwangi, who brings over 20 years of experience in the sector, Gaea Foods has built a robust supply chain of smallholder farmers in the East African country. The company’s commitment to sustainability is evident in its waste management practices, which include converting potato peelings into fertilizer and animal feed. This approach not only minimizes environmental impact but also adds value to the agricultural ecosystem.
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Empowering female entrepreneurs and farmers
One of the most compelling aspects of Pepea’s investment in Gaea Foods is its alignment with the fund’s gender-forward investment strategy. Gaea Foods is not only female-founded but also female-led, with 70 percent of its staff being women. This focus on gender equity is central to Pepea’s mission, as evidenced by the remarks of Tamara Campero, Investments Manager at Oxfam Novib: “Our Impact SME Development Program has shown that female entrepreneurs are more likely to create a gender-balanced workforce and provide decent work conditions for their staff.”
By supporting Gaea Foods, Pepea is championing the role of women in business and contributing to a more equitable and inclusive ecosystem. This investment is expected to have a ripple effect, inspiring other female entrepreneurs and reinforcing the importance of gender equity in the East African business landscape.
Enhancing local value chains
Gaea Foods’ business model is deeply intertwined with the livelihoods of smallholder farmers across Kenya. By sourcing raw potatoes directly from these farmers, the company ensures a stable and fair market for their produce, thereby improving their incomes and overall quality of life.
This mutually beneficial relationship is a cornerstone of Gaea Foods’ operations, and it aligns perfectly with Pepea’s goal of enhancing local value chains.
Pepea’s investment will provide Gaea Foods with the working capital necessary to meet growing demand from both new and existing customers. This, in turn, will enable the company to source from a larger number of smallholder farmers, further strengthening the local agricultural economy. As Gaea Foods scales its operations, the positive impact on these farmers is expected to grow, creating a more resilient and sustainable value chain.
A Vision for Sustainable Growth
Gaea Foods’ commitment to sustainability extends beyond its supply chain and waste management practices. The company is also focused on creating a positive social impact by doubling its workforce from 20 to 40 employees within the next year. This expansion will not only create more job opportunities but will also contribute to the economic development of the communities in which Gaea Foods operates.
Managing Director Irene Mwangi expressed her excitement about the investment, stating, “This investment gives Gaea Foods the ability to keep evolving and source from more smallholder farmers. The work we do allows us to contribute to developing the economy, create jobs, and improve the farmers’ quality of life. We are looking forward to working closely with Goodwell and Oxfam Novib to benefit from their knowledge and expertise in SME development.”
The Role of Goodwell Investments
Goodwell Investments, the firm managing Pepea Fund, has a track record of delivering both social impact and financial returns through its investments in high-growth, high-impact businesses. With teams in Kenya, Nigeria, South Africa, and the Netherlands, Goodwell is well-positioned to identify and support promising enterprises across Africa.
Since its inception in 2009, Goodwell has focused on inclusive growth in sectors that provide basic goods and services and income generation opportunities to underserved communities. Its partnership with Alitheia Capital, which has managed investments in West Africa, further strengthens its ability to make meaningful contributions to the development of the African business landscape.
The investment in Gaea Foods is a testament to Goodwell’s expertise in identifying businesses that have the potential to drive positive change while achieving financial success. By partnering with Oxfam Novib through the Pepea Fund, Goodwell is able to extend its impact to early-stage companies in East Africa, like Gaea Foods, that are making a tangible difference in their communities.
