Norfund, Irvine’s Group invest $18mn in African poultry

Norfund, in collaboration with Irvine’s Group, has announced an $18 million investment aimed at expanding poultry operations in Kenya, Tanzania, Botswana, and Mozambique. This joint initiative will support the establishment of a new grandparent farm in Tanzania, with a focus on enhancing local poultry production and addressing import challenges. The primary goal of this investment is to enhance food security, strengthen supply chains, and provide support to smallholder farmers in the region. William Nyaoke, Regional Director for East Africa at Norfund, shared insights into the significance of this partnership during a recent interview on CNBC Africa. Nyaoke emphasized that the collaboration aligns with Norfund's broader goals of investing in agribusiness and manufacturing to improve food supply in the continent. The partnership with Irvine’s Group, a leading poultry business with a rich history spanning over six decades, underscores the commitment to working with experienced entities dedicated to supporting smallholder farmers and promoting agribusiness development. By focusing on protein production, particularly chicken and eggs, the investment aims to leverage local grain resources to meet the region's growing food needs. The establishment of a grandparent farm in Tanzania plays a crucial role in localizing the poultry supply chain and reducing dependency on global markets. Shorter supply chains not only enhance market accessibility but also contribute to cost efficiency, ultimately benefitting consumers by offering more affordable products. Nyaoke highlighted the societal impact of the investment, noting that a significant proportion of Irvine’s Group customers are women, while the supply chain engages young individuals in various roles, thereby creating sustainable job opportunities. The expansion efforts span multiple countries, with a strong focus on uplifting rural communities and fostering long-term economic growth. Looking ahead, Nyaoke outlined plans to scale up operations in Tanzania and Kenya, with expansions also planned for Botswana and Mozambique. The rising demand for protein in the sub-Saharan region presents a significant opportunity for growth, with the potential to increase per capita consumption and cater to the evolving preferences of the expanding middle class. By investing strategically across the value chain, the partnership aims to enhance product quality, increase production volumes, and meet the rising market demand across East Africa.