The equity investment will scale high-impact poultry operations in Kenya, Tanzania, Botswana and Mozambique.
In a strategic move to enhance food security and scale sustainable poultry operations in Sub-Saharan Africa, Norfund, a 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 Kenya, Tanzania, Botswana and Mozambique, will enable Irvine’s to further scale operations in East Africa.
Irvine’s is already a leading poultry breeder and supplier of broiler Day-Old Chicks (DOCs) and high-quality poultry feed across Sub-Saharan Africa. The latest investment is meant to strengthen food security in 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, Mr William Nyaoke, said that the partnership aligns with Norfund’s commitment to foster sustainable food systems.
This also includes the shared vision of both organisations to strengthen food security and make agribusiness a driving force for Africa’s economic prosperity.
“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,” said Mr Nyaoke.
Mr Nyaoke noted that 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.
As a key supplier of DOCs and feeds to small-scale farmers, the partnership with Norfund will enhance Irvine’s total offering through increased feed and chick production, expanded technical assistance and broader distribution networks.
Additionally, Irvine’s Group will increase its procurement of essential grains, including maize and soybeans, providing further support to local farmers and strengthening regional agricultural commodities value chains.
Mr Craig Irvine, the Group CEO of Irvine’s Group said that 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.”
“This investment into the poultry industry goes beyond Irvine’s by improving our ability to supply and service our growers, thereby empowering them to uplift their communities but also drive sustainable economic growth, ensuring that nutritious protein reaches every market we serve,” said Mr Irvine.
Chicken and eggs are 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.
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 Kenya and Tanzania-based boutique management consulting and transaction advisory firm, was the originator and financial advisor for the transaction.
The official announcement was made in Kenya, the group’s newest establishment, on September 18, 2024, in the presence of Mr Gunnar Andreas Holm, the Norwegian Ambassador to Kenya.
The US Embassy Agricultural Counsellor, Tret J Bret, Irvine’s leadership led by Mr Irvine and Board members David Irvine and Donnie Smith, Norfund’s representatives led by Andreas Davidsen- Vice President of Norfund’s Agribusiness and Manufacturing and Mr Nyaoke, were present.