“Fibrex was not only well positioned to capitalise on the wide-scale infrastructure development of Angola, but also presented impressive growth rates sustained by its ability to retain its market-leading position despite increasing competition from new foreign entrants,” Sandeep Khanna, managing director at the Abraaj Group, said in a statement.
Fibrex is plastic pipe manufacturing firm based in Angola and first established itself in 1996 as a woven bags manufacturer for agricultural materials and fertilisers. The manufacturing firm has since expanded its product range to including PVC and HDPE pipes production for the construction industry.
Since Abraaj Group’s investment in Fibrex in 2007, Fibrex's production volume increased organically by over 70 per cent.
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Davinder Sikand, partner and head of sub-Saharan Africa at the Abraaj Group, explained that Abraaj’s history of investing in private equity in Africa continues to be the firm’s main driver to help establish company’s such as Fibrex.
“We initiated our investment in Fibrex based on Angola’s strong macroeconomic conditions. The country, focused on rehabilitating its national infrastructure, showed rapid GDP growth and demonstrated significant demand for quality construction-related material and products which has helped Fibrex attain a market leading position in the country,” Sikand explained.
The Abraaj Group is a private equity investment firm with operations in Africa, Latin America and the Middle East.
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The group’s operational support of Fibrex since 2007 allowed for improved environmental efficiency and reporting and accounting standards, among others. In 2010, Fibrex was awarded the ISO 9001 certification for quality management.
“This successful experience in Angola has strengthened our confidence in the country’s investment opportunities, increased our appetite for Angolan businesses, and boosted our search for local partner companies,” said Khanna.
“Fibrex remains in a strong position today to capture the continued growth of the construction industry, as Angolans and the African continent more broadly seek to address their infrastructure needs.”