International private equity firm Spear Capital has completed its investment into FML Logistics Private Limited (FML), a Zimbabwean-registered company focused on the transportation of petroleum products in Sub-Saharan Africa.
Spear Capital has made the investment to buy out current shareholders and to meet the need for replenishing FML’s trucking fleet.
In Sub-Saharan Africa, road-based fuel transportation is critical, especially as large parts of the region aren’t served by pipeline or rail infrastructure. According to Spear Capital, the bulk fuel logistics sector is characterised by high margins and high growth, and the Southern African Development Community (SADC) region is projected to sustain some of the highest economic growth rates in the world in the coming decade, making the case for investing in FML clear.
With the investment, FML will grow its current fleet and ensure it is maintained at optimal levels to service the known market opportunity as well as its existing contracts.
“This is an exciting investment for Spear. FML is a company that provides a secure entry into the sector at a time when Sub-Saharan Africa is gearing up for an incredibly promising economic growth period,” says Shaw Mabuto, Partner at Spear Capital.
“By investing in a logistics business, we are confident that there will be an opportunity to help the economic prosperity of the region while also making a conscious effort to minimise emissions and implement core Sustainable Development Goals into the business.”
Spear will implement a strategy to ensure FML operates in a sustainable and socially responsible manner.
Spear is confident that FML will positively impact lives and comply with safety and quality standards during haulage and the handling of all products, and that it will implement continuous driver training and development.
Adding FML to its already successful portfolio in industries such as retail, food & beverage, manufacturing, and healthcare opens opportunities for Spear Capital further to acquire meaningful stakes in industries and territories offering competitive advantages.
