As the holiday season approaches, demand for poinsettias increases, with many young plants sourced from East Africa. Selecta one, a German horticultural company, is expanding its presence in the region by acquiring Wagagai Ltd., a cutting farm in Uganda. The acquisition is supported by a long-term loan of EUR 16.5 million from DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. Part of this funding will be used to modernize the Ugandan farm.
Selecta one produces bedding and container plants, perennials, grasses, and cut flowers for both international producers and local garden centers. With operations at 13 sites across Europe, Africa, Latin America, and Asia—including the new acquisition—the company now employs around 5,000 people worldwide. The Ugandan facility secures Selecta’s production capacity in East Africa.
Wagagai employs more than 2,000 people. Its continued operation will allow ongoing social initiatives such as an on-site health center and educational programs to remain active. These initiatives serve as models for other Selecta sites in Kenya and Colombia. The Wagagai Health Centre was established in 2002 with support from DEG.
DEG has had a longstanding relationship with Selecta one in Kenya through financial support and advisory services since 2014. This includes business support programs like health advice for female employees under the HERhealth initiative and studies exploring solar energy use.
“DEG is maintaining a decades-long partnership with Selecta one and Wagagai. Our recent financing provides scope for further growth to a family-run German company that stands for innovation and social responsibility. It also safeguards the existence of the Wagagai farm, which provides over 2,000 jobs,” said DEG CEO Roland Siller.
“The acquisition of Wagagai is more than a strategic investment – it is a continuation of shared values and a long-standing partnership,” said Per Klemm, CEO of Selecta one. “We are delighted to integrate Wagagai into the Selecta family with DEG’s help, and to build on the impressive foundation of horticultural expertise and social responsibility.”
Selecta holds MPS-SQ certification that measures working conditions including health, safety standards, pay rates above average levels, benefits provision, and workers’ rights protections. Women make up most of its workforce; targeted programs are provided to support them.
In 2024 alone DEG extended EUR 620 million in financing to German small- and medium-sized enterprises (SMEs) like Selecta through loans or equity investments as well as funding for local businesses purchasing German components.