Investment group Cambria Africa has secured an additional 1.5m dollars in debt financing to aid entry of its chemicals distribution subsidiary Millchem into the Zambian market.

The funds will also be used to refinance existing liabilities of the company and for general working capital purposes.

Cambria received the funds from Consilium Investment Management, raising its total debt facility with the group to $4.5m.

"Besides refinancing existing liabilities of the company, this new financing facilitates an acceleration of Millchem's entry into the Zambian market," said Cambria's Chief Executive, Edzo Wisman.

"Millchem has increasingly explored opportunities in the region on the back of stellar growth achieved in the Zimbabwean business."

In a trading update in September, Millchem reported organically grown gross profits year-on-year by 95%.

Millchem is a major distributor of solvents, metal treatments, and alkyd resins.

"After the success of initial sales into Zambia, Cambria will now invest in a more structured presence for Millchem, including a Lusaka office and warehouse," Wisman added.

"Various existing suppliers, encouraged by Millchem's rapid growth in Zimbabwe, have already offered to extend Millchem's Zimbabwe agencies into Zambia."

RD

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