For decades, GB Foods has been a familiar name on African dinner tables, its Gino and Pomo tomato purée sachets a staple across the continent. Now, the fast-moving consumer goods (FMCG) giant is cultivating a new field: the nascent agritech sector. The company has quietly launched GB Hub Africa, a social impact vehicle armed with a $10 million seed fund to invest in innovative businesses that can transform Africa’s food systems and improve livelihoods.
Spearheading this ambitious venture is Nelson Amo, a seasoned impact investor known for his work leading Innohub, a Ghanaian business accelerator. His appointment signals GB Foods’ serious intent to move beyond its traditional FMCG operations and actively shape the future of African agriculture. Amo’s track record in nurturing early-stage enterprises and attracting crucial funding positions him as a key figure in the continent’s evolving agribusiness landscape.
GB Hub Africa’s mission is anchored on four fundamental pillars: bolstering food security, enhancing nutrition, promoting environmental sustainability, and fostering economic development. The $10 million capital injection from GB Foods’ shareholders will be strategically deployed to support ventures that can strengthen Africa’s capacity to produce and distribute food efficiently, increase access to nutritious and affordable food options, encourage environmentally sound farming and processing methods, and empower local entrepreneurs, thereby generating employment within the agricultural sector.
The fund’s investment strategy targets critical nodes within the agricultural value chain. This includes backing startups and small and medium-sized enterprises (SMEs) focused on improving farm inputs, such as organic fertilizers and soil enhancement technologies. It will also support farming operations that implement structured block farming models for increased efficiency, value addition and processing initiatives to reduce post-harvest losses, sustainable and cost-effective packaging innovations to minimize waste, and logistics and market access solutions to streamline supply chains and connect farmers directly to markets.
Even before its official launch, GB Hub Africa has been testing the waters with pilot projects. In Nigeria’s Kebbi State, a tomato block farming initiative is underway, aiming to boost local production and decrease reliance on imports. Meanwhile, in Guinea Conakry, a PET packaging recycling factory is being established to foster a circular economy for plastic waste generated from food packaging.
This commitment to action has already translated into tangible investment. The fund has made its first foray into the Ghanaian agritech scene, backing GreenHeart SE Limited, an agribusiness company pioneering the use of biochar to combat land degradation and capture carbon. The $50,000 seed funding and technical support package represents a significant step in GB Hub Africa’s Food Systems Transformation Agenda.
GreenHeart SE specializes in converting organic biomass waste into biochar-based agricultural products that enhance soil fertility, improve animal health, and increase crop yields. This innovative approach not only promises to boost agricultural productivity but also aligns with global efforts to address climate change through carbon sequestration and sustainable agriculture.
Caleb Lomo, CEO of GreenHeart SE, hailed the investment as crucial for the company’s growth and impact. “This support not only strengthens our ability to scale our sustainable innovations but also accelerates our mission to drive climate-smart solutions across industries,” he stated, emphasizing the potential for significant expansion and a future where sustainability and profitability are intertwined.
Nelson Madiba Amo, Executive Director of GB Hub Africa, emphasized the strategic alignment of this investment with the organization’s overarching goal. “We are committed to investing in Africa’s food systems to improve livelihoods. This investment in GreenHeart SE is a step towards achieving that vision,” he said, expressing confidence in the company’s potential for significant growth and impact on local farmers.
GB Hub Africa enters a complex landscape. The African startup ecosystem has seen a rise in corporate venture capital (CVC) initiatives, but their long-term viability has often been questioned. Recent closures, such as the ARM Labs Lagos Techstars Accelerator in Nigeria and the winding down of Naspers Foundry in South Africa, highlight the challenges CVCs face in sustaining their operations beyond initial funding cycles. Capitec Bank’s Imvelo Ventures has also become less active, adding to concerns about the endurance of such initiatives.
While some CVCs, like Honeywell Group’s Itanna, have seen periods of inactivity after initial investments, others, such as First National Bank (FNB)’s Vumela Fund and Standard Chartered’s SC Ventures, remain active, demonstrating that sustained engagement is possible. FNB’s recent investment in Trade Shield, a credit risk management firm, and SC Ventures’ backing of Furaha, an African lending fintech, showcase ongoing commitment to fostering innovation.
GB Foods Africa, the parent company behind this new venture, is a well-established FMCG player with a strong presence across numerous African markets, including Nigeria, Ghana, Algeria, and many others. Its portfolio includes popular brands like Jumbo bouillon, Gino and Pomo tomato paste, and Jago milk powder and mayonnaise.
The launch of GB Hub Africa represents a significant strategic shift for the company, leveraging its financial muscle and market understanding to address critical challenges in Africa’s food systems. Whether GB Hub Africa can navigate the complexities of the CVC landscape and achieve its ambitious goals remains to be seen. However, its initial investment in GreenHeart SE offers a tangible glimpse of its commitment to fostering innovation and building a more sustainable and food-secure future for the continent.