The growth story for the dairy economy in East Africa is a compelling one, with a wealth of opportunities for investors. According to a report by the Food and Agriculture Organization (FAO), the East African dairy market is projected to reach $9.4 billion by 2025, driven by a combination of population growth, urbanization, and rising income levels. The population of East Africa is expected to reach 1.2 billion by 2050, which will create a significant increase in demand for dairy products.

The East African dairy sector, where Amthe Capital is active, is characterized by a large number of smallholder farmers, who account for more than 80% of the region's milk production. This presents an opportunity for us to support the growth and development of the smallholder sector, which can help to improve the livelihoods of these farmers and contribute to the overall development of the region.

The African Development Bank (AfDB) has set a target to raise $1.2 billion for the dairy sector in East Africa by 2025. This will help to finance the construction of modern dairy processing facilities, which are expected to increase the region's milk processing capacity by 40% over the next three years.

Investment in dairy value chains in East Africa will also have a positive impact on other sectors, including broader agricultural growth and food security. According to the African Development Bank, the dairy sector in East Africa has the potential to create over 1 million jobs, and improve the livelihoods of over 10 million people.

The East African dairy sector presents a unique and exciting opportunity for investors looking to generate sustainable returns from a growing market, while also making a positive impact on the region's economy, environment and communities.