Deal Summary
Fedgroup, a South African investment and insurance company, and the Investment Fund for Developing Countries (IFU), Denmark’s development finance institution, have committed over $40 million to Verdant Orchards, an export-focused agribusiness, building high-value perennial orchards, in South Africa under Verdant Frontiers Group. IFU contributed $15m and Fedgroup over $25m, targeting expansions across Mozambique, Zambia, and South Africa. Verdant Orchards also acquired Noordgrens, an established citrus farm in Limpopo.
Terms
- Fund Managers: IFU & Fedgroup Asset Management Pty (Ltd)
- Target Company: Verdant Orchards LLC
- Investment Amount: $40m+
- Fund: Danish SDG Investment Fund (IFU) and Impact Portfolio (Fedgroup)
- Deal Type: Equity Investment
Deal Rationale
This investment supports Verdant Orchards’ capacity expansion and focuses on high-value crops for global markets. With plans to complete planting over 1,600 hectares of orchards by June 2026, the company aims to meet surging global demand for citrus and avocados. Expansion plans include Verdant’s citrus farm in Gaza Province, Mozambique, where orchard acreage will increase to 450 hectares by the end of 2025; the transformation of the Verdant Orchards Munyati farm in Zambia into a 360-hectare avocado orchard by mid-2026, capturing the rising demand for avocados; and in South Africa, the acquisition of Noordgrens Landgoed farm in Limpopo adds over 800 hectares of citrus orchards, a modern packing facility, and a stake in a fruit marketing business. This expansion is set to provide over 1,200 full-time jobs and foster local economic development while promoting sustainable agriculture through environmentally friendly practices and ecological preservation of nearly 4,000 hectares.
Aligned with IFU’s mission to support sustainable agriculture and economic upliftment in rural Africa, this investment further strengthens Verdant Orchards’ operational and export capacity, with infrastructure developments, such as schools and renewable energy solutions, enhancing rural economies.
About the Fund Managers
IFU, or Investeringsfonden for udviklingslande (Investment Fund For Developing Countries), was founded in 1967 and is managed and funded by the Danish government, specifically the Ministry of Foreign Affairs. It supports green and sustainable development in emerging markets, aligning with the UN Sustainable Development Goals. It has investments in over 1,336 companies across 7 funds totaling $33bn. IFU typically takes a minority stake ranging from 10-30 percent, but in small projects, IFU can take up to 49 percent.
Established in 1990, Fedgroup is a South African financial services group specialising in insurance and investment services. With over 30 years of experience, the company focuses on providing a range of financial products, including investments, long-term insurance, lending, and fiduciary services. Fedgroup manages three investment vehicles or portfolios: the Impact Portfolio, the Diversified Alternatives Portfolio, and the Fixed Endowment Portfolio. Through its Impact Portfolio, Fedgroup uses debt instruments focused on high-margin agricultural investments like nuts, berries, honey, and citrus, prioritising sectors such as energy and agriculture while avoiding cash crops like wheat and maize.
