Norfund and Irvine’s Group have signed a Ksh. 2.3 billion (USD 18 million) financing agreement to expand operations in poultry initiatives. This move aims to enhance food security and scale sustainable poultry operations in Sub-Saharan Africa.
The investment has been made in Buchan Limited, Irvine Group’s holding company for its operations in Kenya, Tanzania, Botswana, and Mozambique. Buchan is a leading poultry breeder and supplier of broiler Day-Old Chicks (DOCs) and high-quality poultry feed across Sub-Saharan Africa.
As part of the agreement, Irvine’s 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.
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.
Africa Insight Advisors, a Tanzania and Kenya-based management consulting and transaction advisory firm, was the originator and Financial Advisor for the transaction.
Speaking during the partnership announcement in Nairobi, Norfund Regional Director, East Africa, William Nyaoke said, “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.”