Norfund, the Norwegian Investment Fund, and Irvine’s Group have penned a US$18 million (Kes 2.2 billion) investment deal to expand poultry production in Africa.
The funding will be made by Buchan Limited, Irvine’s holding company, for its operations in Kenya, Tanzania, Botswana, and Mozambique. The investment enables Irvine’s Group to scale poultry breeding and the production of high-quality poultry feed across East Africa.
Irvine’s Group breeds and sells chicken to smallholder farmers. The Group also offers technical assistance and training to smallholder farmers.
Through this investment, Norfund and Irvine’s aims to generate jobs and contribute to food security on the African continent.
Speaking during the announcement of the deal in Nairobi, Norfuund’s Regional Director William Nyaoke noted that “Irvine’s contribution to promoting agribusiness value chains has been instrumental in creating long-term employment for the youth, particularly in rural areas, thereby driving economic empowerment and enhancing livelihoods.”
“By scaling production capacity and strengthening the local supply chains, Norfund’s investment will improve their capability to serve more smallholder farmers and create new jobs for East Africa’s fast-growing youth population,” he further noted.
The investment will fund a hatchery in Kenya, as well as a feed mill and a grandparent farm in Tanzania. Norfund, Irvine’s says the investment will boost production and reduce the countries’ reliance on imports.
The expansion is projected to generate 200 direct jobs while increasing income for farmers. Also, the feed mill will boost income and strengthen regional agricultural value chains by purchasing soybeans and maize from local farmers.
With over 60 years of experience, Irvine’s Group makes a significant contribution to the poultry industry in Africa. The Group contributes about US$ 640 million to Africa’s economy annually, according to data published on its website.
“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,” Irvine’s CEO Craig Irvine said.
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