Cepheus Growth Capital Partners (Cepheus Capital), the private equity which has injecting finance in promising sectors in Ethiopia for the past few year, invests in Tabor Ceramics Products Share Company.
With this investment, Cepheus Capital will hold a significant minority ownership stake and provide strategic, managerial, and operational support to the company, according to the press statement from Cepheus Capital, which didn’t mention the amount of its investment.
based in Hawassa city of the new region of Ethiopia, Sidama, Tabor Ceramics is currently undertaking major expansion to increase all four of its main products. Ceramic products of the company includes tiles, sanitaryware, tableware and ceramic insulators used in electricity distribution lines.
The equity investment by Cepheus Capital will support the company’s planned expansion and also help launch the production of new higher quality and higher value product line being manufactured in Ethiopia for the first time.
Teshome Belamo, whose family owns Tabor Ceramics, said: “We are excited to partner with Cepheus Capital as we are at the beginning of a major factory expansion and are also aiming to improve our management systems and internal operations to be in line with international standards. We have a very
close alignment with the team at Cepheus Capital and look forward to working with them in the years ahead.”
“We see Tabor Ceramics as a promising investment opportunity that is very much aligned with the growth trends and trajectory of the Ethiopian economy—including urbanization, infrastructure expansion, and the rising numbers of middle-class consumers,” said Berhane Demissie, Cepheus Capital’s Managing Partner.
“The company has seen growing demand for its products in recent years, and we anticipate this will continue over the coming years, reflecting large on-going housing developments as well as the expansion of the country’s electricity network. The mix of products manufactured by the company—covering retail, residential, commercial and industrial customers—also offers multiple growth and diversification opportunities,” she said.
The deal was led by Helaway Tadesse, Director at Cepheus Capital, who commented: “Tabor Ceramics is a well-positioned import-substituting business that can replace a range of ceramic-made products currently supplied
almost exclusively via imports. Moreover, as the company’s raw material inputs can be readily secured from local sources, the scope for future expansion is substantial.”
Cepheus Capital is a private equity firm that invests in Ethiopia’s most promising businesses and entrepreneurs. Besides providing capital, the firm also delivers management and operational expertise to its portfolio companies, and assists them in the adoption of strong environmental, social and governance standards.
It is indicated that Cepheus Capital is finalizing the fund-raising for its first $100 million fund that will be deployed across the manufacturing, agro-processing and services sectors in Ethiopia.