Norfund, Irvine’s in US$18m investment to boost poultry in Africa
PRESS RELEASE – In a strategic move to enhance food security and scale sustainable poultry operations in Sub-Saharan Africa, Norfund (the Norwegian development finance institution) and Irvine’s Group have signed a USD 18 million financing agreement to expand operations in high-impact poultry initiatives.
The investment in Buchan Limited, the Group’s holding company for its operations in Tanzania, Botswana, Mozambique, and Kenya, will enable Irvine’s, already a leading poultry breeder and supplier of broiler Day-Old Chicks (DOCs) and high-quality poultry feed across Sub-Saharan Africa, to further scale operations in East Africa.
As part of the agreement, Irvines Group, in a joint venture with its long-time partner Cobb, will establish an ultra-modern grandparent farm in Tanzania. This facility will breed parent stock and help reduce the timeline and logistical challenges of importation, thereby increasing the cost competitiveness and ensuring the reliability of the supply chain throughout Africa.
Speaking during the partnership announcement in Nairobi, Kenya, Norfund Regional Director, East Africa, William Nyaoke, maintained that the partnership aligns with Norfund’s commitment to foster sustainable food systems and the shared vision of both organisations to strengthen food security and make agribusiness a driving force for Africa’s economic prosperity.
He observed that Irvine’s contribution to promoting agribusiness value chains has been instrumental in creating long-term employment for the youth, particularly in rural areas, thereby driving economic empowerment and enhancing livelihoods.
“By scaling production capacity and strengthening the local supply chains, Norfund’s investment will improve their capability to serve more smallholder farmers and create new jobs for East Africa’s fast-growing youth population,” said Nyaoke.
As a key supplier of DOCs and feeds to small-scale farmers, the director highlighted that the partnership with Norfund will enhance Irvine’s total offering through increased feed and chick production, expanded technical assistance, and broader distribution networks.
Additionally, Nyaoke stated that Irvine’s Group will increase its procurement of essential grains, including maize and soyabeans, providing further support to local farmers and strengthening regional agricultural commodities value chains.
These funds will fuel the next chapter of our growth, enabling us to continue driving our purpose of changing lives in Africa by providing accessible, high-quality protein while empowering local businesses,” charged Craig Irvine, Group CEO of Irvine’s Group in a quick rejoinder.
This investment into the poultry industry, according to the CEO, goes beyond Irvine’s by improving its ability to supply and service growers, thereby empowering them to uplift their communities but also drive sustainable economic growth, ensuring that nutritious protein reaches every market it serves.
Meanwhile, Irvine cited chicken and eggs as the most affordable animal-based protein sources, and this, coupled with the projected population growth in the region, will lead to an ever-increasing need to produce quality protein in the form of chicken.
He noted that through its expanded offerings, Irvine’s is committed to making chicken and eggs an everyday source of quality and affordable protein for consumers across Sub-Saharan Africa.
Africa Insight Advisors, a Tanzania and Kenya-based boutique management consulting and transaction advisory firm, was the originator and Financial Advisor for the transaction.
-finx
