Sahel Capital commits US$1M to Persea Oil to support East Africa’s avocado industry

KENYA/TANZANIA – Sahel Capital has confirmed a US$1 million debt investment into Persea Oil, a company that processes avocado oil in Kenya and Tanzania.

The money comes through the Social Enterprise Fund for Agriculture in Africa (SEFAA) and will be split between working capital and upgrading the company’s processing facilities.

Persea Oil runs operations in both countries, buying avocados from over 800 smallholder farmers and turning them into organic and conventional oils.

The firm keeps these two production lines separate and tracks supply from farm to export. The new investment includes US$500,000 for working capital and US$500,000 for improvements to help increase output.

Speaking about the deal, Zakayo Ngetich, Sahel Capital’s Vice President for East and Southern Africa, said Persea Oil’s progress since their first round of funding in 2024 stood out.

“Rising global demand for avocado oil, driven by increasing awareness of its health benefits and applications in food, skincare, and pharmaceuticals, has created a strong market,” he said.

“Kenya, with its ideal climate and fertile land, is well-positioned to serve this demand. Our renewed support for Persea reflects the company’s impressive trajectory since our initial investment in 2024.”

To make it easier for farmers to meet supply requirements, Persea Oil provides 15% of the agreed payment before harvest.

This eases financial pressure on farmers during the growing season. All the avocado oil the company produces goes to international markets, with Spain and other parts of Europe taking the largest share.

The company’s growing focus on export-ready, high-quality oil has led to a sharp rise in production volumes, which is why Sahel Capital’s new funding focuses on scaling up operations.

Global market on the rise

The global avocado oil market reached an estimated US$610.5 million in 2024, according to IMARC Group. North America leads the market, holding nearly 46% share, with extra virgin oil being the most popular. Food and beverage use continues to lead, followed by cosmetics and pharmaceuticals.

Looking ahead, the market may reach US$1.5 billion by 2030, according to Global Strategic Business Report, with a steady annual growth rate of 5.9%.

Another projection by Fortune Business Insights puts the figure closer to US$1.13 billion by 2032, but with a slightly faster annual growth rate of 7.48%.

Organic oil is drawing more attention, helped by a global organic food market that is growing by nearly 11% each year.

Cold-pressed oils and clean processing are attracting health-focused and eco-conscious buyers. Persea Oil has placed itself firmly in this space, aiming to meet both global market needs and regional development goals.

With continued support from Sahel Capital, the company plans to improve farmer engagement, grow exports, and sharpen its focus on quality across every part of its supply chain.

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