The Irvine’s Group is Sub-Saharan Africa’s most prominent poultry breeder and supplier. It has partnered with Norfund, the Norwegian development finance institution, to extend its poultry operations across the continent. This partnership, through a US$18 million equity investment, is going to uplift African food security and further promote agribusiness on the entire continent, particularly in Botswana, Kenya, Tanzania, and Mozambique.
While Irvine’s Group is already important in the delivery of quality broiler day-old chicks and poultry feed to small-scale farmers, this new deal allows Irvine’s Group to expand operations. It would be expected that the emergence of increased logistical and supply chain challenges in the poultry industry will go a long way toward addressing them, with quite significant impacts concerning the much-needed supplies of affordable animal-based proteins-leading to chicken and eggs becoming more readily available within the region.
Another important part of the agreement is the setting up of a state-of-the-art grandparents’ farm in Tanzania. The complex, designed through a joint investment between Irvine and Cobb, Irvine’s long-standing partner, shall form a core unit in the company’s parent stock breeding. In this line, the firm seeks to address the logistical nightmare that it has had in regard to the importation of chicks and the periods of delivery. This will make the poultry supply chain not only more reliable but also more cost-competitive in Africa, and more small-scale farmers will be able to benefit from access to chicks and feed at an affordable price.
The positive effects of this partnership will also go beyond mere increases in production. It is a deal that will effectively position Irvine’s Group to be better placed to increase feed and chick production, improve its technical assistance programs for farmers, and develop its distribution networks. This offering will go a long way in developing the growth of small-scale farmers, who are considered the backbone of the poultry industry in most African countries. With improved access to quality feed and DOCs, coupled with the necessary technical support, farmers will be able to raise their yields, thereby increasing yields that directly enhance livelihoods and contribute toward rural economic empowerment.
The announcement of the partnership in Nairobi, Kenya, had Norfund Regional Director for East Africa William Nyaoke emphasize how this fits into Norfund’s commitment toward sustainable food systems. He noted that the partnership would not only ensure enhanced food security but also serve as an economic driver through the promotion of agribusiness. He acknowledged that Irvine’s Group had already played a very critical role in agribusiness value chain development, particularly in the creation of long-term employment opportunities for the youth in rural areas. This, indeed, has contributed considerably to economic empowerment and improved livelihoods in the communities it serves.
Craig Irvine, the chief executive officer of Irvine’s Group, sounded quite optimistic about the company’s prospects with this new injection of money. He maintained that the investment would further reinforce the company’s vision of changing lives in Africa through better access to high-quality protein and economic empowerment at the local level. Chicken and eggs remain among the most affordable sources of animal protein, and as such, they are needed across most countries in Africa to help improve the nutrition status of low-income populations.
The transaction was advised by Africa Insight Advisors, a boutique management consulting and transaction advisory firm based in Tanzania and Kenya. It acted as the originator and financial adviser for this transaction, again underlining the local expertise in driving such large investments.
A partnership between Irvine’s Group and Norfund would thus be even more far-reaching in consequence, from within the poultry industry into wider problems of food security and rural economic development across Africa.
