With the Nigerian snack industry set to cross the $1 billion mark and Africa’s consumer base and resulting food consumption on an accelerated trajectory, LPs should be watching this segment very closely. Adesuwa Okunbo Rhodes, founder and managing partner at Aruwa Capital, showcases a recent investment in the space.
Aruwa Capital Management in 2023 invested $2 million in Fastizers Food and Confectionery, a leading snack manufacturer offering quality and affordable snacks to consumers in Nigeria. This investment was a robust boost to Fastizers’ plans for expansion and excellence, with the deal structured as a growth capital transaction.
The company is not merely aiming for growth – it aspires to lead the Nigerian snack food industry, which was valued at $883 million in 2021 and projected to soar to a staggering $1.5 billion by 2024. This is an impressive 20% annual growth.
This upward trend in consumption will be largely propelled by increasing urbanization and population growth. A significant portion of Fastizers’ product lineup is concentrated in the realm of sweet biscuits, snack bars, and fruit snacks, which had a total worth of $578 million in 2021.
This specific segment is primed for a remarkable 20% increase, reaching an estimated $695 million by 2026. This is not just a testament to the substantial prospects within the industry for fast-food restaurants. It also mirrors a larger pattern where consumers frequently explore cost-effective and top-notch alternatives to foreign brands.
Fastizers will use the new capital to increase its factory output and gear up to introduce a new fully automated production line. The new automated production line is a cutting-edge addition that will have the capacity to onboard new products and churn out over 1,200 kilograms of snack foods per hour, ensuring the delivery of tantalizing snack foods and confectioneries to its ever-growing customer base across Africa.
It is also projected to provide an additional 100 job opportunities for the local community and economic opportunities for indigenous players within its value chain, as it sources over 70% of its raw materials locally. This undertaking has already garnered significant attention and support, thanks to Aruwa Capital’s strategic backing.
Since its inception in 2010, the company has continued to grow into a household name in the snack food sector in Nigeria, with its products becoming increasingly popular across the country. This investment supports our ethos of enhancing import substitution by backing a local manufacturer of snack foods that can match foreign brands in areas of taste, quality, and consistency.
From its headquarters in Agbara, Fastizers Food operates both semi-automated and fully automated lines at its production facilities. Fastizers’ brand includes a delicious range of snacks, not limited to Nibit, Sweetstix, and FunCookies.
In line with Aruwa’s gender lens investing strategy, Fastizers is founded and led by a woman with over 46% female ownership and 45% female representation across its 250 employees, led by chief executive officer Debby Lawson. In addition, the company has 59% female representation amongst its distributors. We are very confident in the company’s ability to scale across Africa and are thrilled to be partnering with this dedicated team for the exciting journey ahead.
