EthioChicken (AgFlow Poultry Limited)
Region and country of operations: Ethiopia
Jurisdiction of registration: Mauritius
Business sector: Poultry production
Date of agreement (month/year): 12/2016
Finnfund’s financing: USD 10,000,000
Share of Finnfund’s financing: approx. 35%
Size of project/financing: USD 28,000,000
Environmental and social category: A
Project description
The Group operates six poultry farms in Ethiopia, which produce and supply chicken for low-income households in rural Ethiopia. The Group produces day-old-chicks (DOC), sells them to sales agents, which in turn grow them for 6-8 weeks. The sales agents sell the young chicken primarily to rural households which grow the chicken further to produce meat and eggs. The operating model with the targeted rural market and the level of operations of the Group are almost unique in Africa.
Main development impact
The biosecurity, environmental and social management systems of the Group have been improved with the support of Finnfund and external consultants and the company has obtained GlobalGAP certification.
At the end of 2018 the Group employed directly roughly 1,155 employees (of which 433 are women) and through the sales agent network of 5,000, of which 2,000 are primarily young female Ethiopians. It is estimated that the Group reaches currently about 2.1 million households in rural Ethiopia, generating income and improving the nutrition of about 5.5 million people. Through the improved productivity of the hybrid breeds, the supplied chicken create far more income and nutrition than the local breeds. The production of DOCs in Ethiopia substitute imports as the poultry consumption is projected to increase significantly in the future.
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