Regional poultry industry gets Sh2.3Bn boost from Norfund
Private equity firm Norfund and Irvine’s Group have signed an $18 million (about Kes2.34 billion) financing deal to expand high-impact poultry operations across Sub-Saharan Africa.
Irvine’s Group, which is a major poultry breeder and supplier in the region said it will use the funds to scale its operations in East Africa through its holding company, Buchan Limited. Currently, Buchan Ltd has operations in Tanzania, Botswana, Mozambique, and Kenya.
According to Norfund Regional Director, East Africa, William Nyaoke, the partnership aligns with Norfund’s commitment to fostering sustainable food systems and the shared vision of both organisations to firm up food security and make agribusiness a driving force for Africa’s growth.
“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,” noted Mr Nyaoke.
He added, “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.”
This expansion aims to strengthen poultry production in the region, addressing growing demand for broiler Day-Old Chicks (DOCs) and high-quality poultry feed in the region.
As part of the deal, Irvine’s Group, in partnership with Cobb, will set up a new grandparent farm in Tanzania to breed parent stock, thereby reducing import challenges and improving supply chain reliability.
The new farm will help lower the cost of poultry production and improve the region’s self-sufficiency in poultry products, cutting down reliance on imports and logistical delays.
The initiative, spearheaded by Africa Insight Advisors, marks a key step in addressing food security and building sustainable agricultural systems in East and Southern Africa.
Read also: Norfund sees a bright future in Kenya’s textile industry
Small-scale farmers
As a key supplier of DOCs and feeds to small-scale farmers, the alliance with Norfund is also poised to enhance Irvine’s total offering through increased feed and chick production.
Other gains include 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.
“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,” said Craig Irvine, Group CEO, Irvine’s Group.
“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.”
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.
