New investment fund supports regenerative agriculture in East Africa
Amsterdam, 10th of September 2024 - DOEN Participaties is proud to announce its investment in the Grounded Investment Company (GIC), an innovative investment fund for regenerative agriculture. Grounded Investment Company improves food production by promoting sustainable farming practices, improving soil quality and increasing farmers’ incomes.
Farmland depletion is one of the biggest challenges of our time. In addition, food processing companies on the African continent are severely underfunded. Investing in these businesses can improve quality, boost profits and increase scale. Enabling farmers to produce superior quality products and secure the required certifications can enhance their ability to meet the demands of the global market. The Grounded Investment Company is investing in a pioneering regenerative agricultural system designed to boost the productivity and earnings of small-scale farmers, enhance the nutritional quality and robustness of crops such as coffee, tea, and spices, and supply consumers with pesticide-free, wholesome food.
The Grounded Investment Company (GIC) emerged from Grounded, a company focused on sustainable landscape restoration and regenerative agriculture in East and Southern Africa. Over the past 10 years, Grounded has developed a successful model that generates value for investors, farmers and the environment by concentrating on value chain investments and equipping farmers with know-how and practical solutions. The expertise of the Grounded team enables GIC to invest in businesses that do not yet have many investors. This creates a unique opportunity for GIC to make an impact in rural economies.
GIC’s first investment has been Trianon Spices, a spice company in Tanzania. Due to the efforts of Grounded’s team, the company has boosted its profit margin from 0 to 18% within two years, expanded its revenue by 250%, and now has over 450 farmers engaged in a comprehensive regenerative agriculture programme overseen by an on-site team. For instance, the production of disease-suppressing compost has directly enhanced the quality and yield of black pepper. By connecting to the market, the company can immediately reward farmers for the higher quality associated with regenerative agriculture.
The DOEN Foundation, the fund of the Postcode Loterij, has been involved with Grounded since 2014. With the establishment of the Grounded Investment Company, DOEN Participaties (the social investment company of the DOEN Foundation) is now coming on board.
Thekla Teunis, Managing Partner of GIC: “The collaboration with DOEN Participaties will accelerate our mission to make regenerative agriculture attractive and scalable, thus contributing to sustainable food systems.”
Mirjam Niessen, Impact Investment Principal at DOEN, adds: “Our investment in the Grounded Investment Company fits perfectly with our mission to accelerate the transition to a regenerative economy. Grounded has developed a model that we believe will bring about significant change in the agricultural sector, will contribute to resilience and sustainability, and will set an example in Africa and far beyond.”
