Fr. Seamus Finn, OMI, Tours Biscuit Factory in Lagos, Nigeria
May 19th, 2017
Fr. Seamus represents the Oblate International Pastoral Investment Trust (OIP) on the advisory board of 8 Miles Private Equity Fund 8miles.com, which met in Lagos, Nigeria for two days in May. The OIP has a small position in this fund that has a presence in six African countries, including Ghana, Nigeria, Egypt, South Africa, Uganda and Ethiopia. The fund has a strong commitment to development and responsible investing and aligns well with the missionary thrust of the OIP and the Oblates.
While in Lagos, Fr. Seamus visited 8 Miles’ most recent investment, a cream biscuit factory. According to an 8 Miles company profile page on the project, Nigeria’s biscuit sector has seen strong growth of 10 to 15 per cent per annum, and they are projecting this to continue, driven by population growth, rising disposable incomes and increasing urbanization coupled with the growing popularity of biscuits as a convenience snack. According to 8 Miles, the growth in this sector is also the result of a relatively young population, with 63% of the country’s 115 million people, below the age of 25 years.
Beloxxi is a market leader in Nigeria with significant market share and has one of the most popular and highest selling cream cracker brands in the market, with a reputation for high quality. It operates several production lines from its plant in Agbara, Ogun State and multiple warehouses across the country. The Company employs about 2,300 people and operates through a network of about 400 distributors. The Company has experienced growth rates in excess of 30% per annum in the last few years.
8 Miles has identified select locations and sectors where its investment approach can be best implemented, with a focus on strong macroeconomic fundamentals, good governance, a favorable regime for foreign investors, and a track record of private sector reforms which make doing business easier.
More on Beloxxi Industries:
- Beloxxi Industries Ltd. is a biscuit producer, with the largest share of the cream crackers segment in Nigeria
- The company was established over 20 years ago as a biscuit importer and, in 2006, evolved into a local producer of cream crackers after building an ultra-modern factory in Nigeria
- Beloxxi biscuits are sold via a network of >400 distributors and supermarket chains in Nigeria, with exports to Ghana. The product is also served on international flights from Nigeria
- Market Potential: Growth in the Nigerian biscuits sector driven by increasing urbanization and rising popularity of biscuits as a convenience snack, in-between meals or on-the-go
- With a well-known brand and reputation for high quality, Beloxxi is the leading product by sales volumes in Nigeria’s cream crackers market
- Beloxxi enjoys cost and quality advantages due to a fully-automated and efficient production process. Exit potential also enhanced by world-class facilities