Aruwa Capital expands investment in AgroEknor’s hibiscus export operations

NIGERIA – Aruwa Capital Management, a gender-focused equity fund based in Nigeria, has announced a follow-on investment into AgroEknor, a major hibiscus exporter and wellness brand.

This new injection of funds comes after AgroEknor achieved substantial growth and milestones following Aruwa’s initial investment in December 2022.

AgroEknor has expanded its operations significantly, with the completion of its hibiscus flower processing chamber being one of the standout developments.

The chamber, one of only seven approved facilities in Nigeria, has enhanced AgroEknor’s export capacity and product quality. This has allowed the company to command higher prices for its hibiscus, a move that has positively impacted its profit margins.

“Our partnership with Aruwa has been pivotal in our growth,” said Timi Oke, CEO of AgroEknor. “The completion of our processing chamber has opened new markets, and our ability to secure premium prices has boosted our bottom line. We are also proud of the success of our Farmers Education and Empowerment Project (FEEP), which continues to double the yield for smallholder farmers.”

AgroEknor has also launched YieldPro, an innovative system designed to enhance farm yields for smallholder farmers.

YieldPro offers a cloud-based directory for farm monitoring and traceability, ensuring transparency from cultivation to harvest. This system not only helps farmers adopt sustainable practices but also enhances productivity.

In addition to the technological advancements, AgroEknor has secured strategic partnerships to distribute hibiscus concentrates to international markets, including the UK, USA, and UAE.

This move aligns with global consumer preferences for wellness products, particularly non-GMO varieties. The global demand for non-GMO hibiscus is expected to grow by 12.5% annually, further bolstering AgroEknor’s position in the market.

The hibiscus market is anticipated to grow by 7.5% per year between 2021 and 2025, with Nigeria emerging as a key player due to its high-quality, non-GMO hibiscus varieties.

In 2023, Nigerian hibiscus farmers aimed to earn around USD 100 million from exports, with primary markets being Mexico, the United States, and parts of Europe. Mexico alone imports about 85% of Nigeria’s total hibiscus exports.

AgroEknor’s FEEP programme has also grown substantially, registering close to 3,000 smallholder farmers, with over 11,000 more on a waitlist.

The programme has successfully doubled the yield per hectare for participating farmers, securing AgroEknor’s competitive advantage in sourcing raw materials.

The additional investment from Aruwa will support further expansion of this initiative and drive more adoption of the YieldPro system among smallholder farmers.

“Aruwa’s support has been instrumental in our journey,” Oke added. “With this follow-on investment, we will meet growing demand, improve our infrastructure, and continue to empower farmers.”

Aruwa Capital’s founder, Adesuwa Okunbo Rhodes, expressed optimism about AgroEknor’s future. “AgroEknor has made impressive strides, and this investment reflects our confidence in their ability to scale sustainably. We look forward to seeing the impact they continue to make in the hibiscus industry and beyond.”

Africa currently contributes about 20% of global hibiscus exports, with Egypt and Nigeria being key players. With AgroEknor’s growing capacity and global demand rising, the future looks bright for both the company and the farmers it supports.

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