Key Takeaways
- Significant Investment: Hatch Africa has secured a $9.5 million investment from AgDevCo and IDH Farmfit Fund to expand its poultry business in Sub-Saharan Africa.
- Expansion Plans: The funding will be used to scale Hatch’s innovative business model across Kenya, Ghana, and Cote d’Ivoire, targeting millions more smallholder farmer households.
- Impact on Rural Households: Hatch Africa focuses on distributing dual-purpose breeds of day-old chicks, aiming to make smallholder farmers healthier and wealthier.
- Growth and Reach: Since its inception in 2010, Hatch Africa has reached 4.6 million rural households and plans to grow its impact six-fold by 2030.
- Investor Confidence: The investment reflects the confidence of AgDevCo and IDH Farmfit Fund in Hatch Africa’s potential for scalable impact in improving incomes and nutrition in rural Africa.
Investment to Scale High-Impact Poultry Business
Hatch Africa, known for its high-impact poultry business aimed at underserved rural households, has recently achieved a significant milestone by securing a combined investment of $9.5 million. The investment was made by AgDevCo and the IDH Farmfit Fund, signaling strong confidence in the company’s business model and growth potential. This funding will support Hatch Africa’s operations in Kenya, Ghana, and Cote d’Ivoire through its holding company, Flow Equity Africa Ventures (FEAV).
Enhancing Rural Livelihoods through Poultry
Hatch Africa’s core mission is to improve the livelihoods of farmers by providing them with high-quality poultry breeds. These breeds are well-suited for backyard rearing, offering advantages such as faster growth, higher egg production, and increased disease resistance compared to local varieties. The company has established a vast network of agents who manage the rearing of these birds and supply them to smallholders, who typically own between 5 to 20 birds each.
Strategic Expansion and Brand Presence
Founded in 2010, Hatch Africa has already made a significant impact, reaching 4.6 million rural households in Ethiopia, Uganda, and Rwanda with its brands EthioChicken and Uzima Chicken. With the new investment, Hatch plans to expand its presence in Ghana and Cote D’Ivoire under the brands Premier Poultry and Prestige Poultry, respectively. In Kenya, the company will operate under the Uzima Chicken brand, a name that resonates with local culture.
Statements from Key Stakeholders
Joseph Shields, Co-founder of Hatch Africa, expressed his gratitude for the support from committed investors like AgDevCo and IDH, emphasizing their role in Hatch’s scalable commercial progress. Rebecca Sankar, AgDevCo’s Managing Director for East Africa, highlighted the organization’s continued support for Hatch’s expansion and its impact on rural incomes and nutrition. Roel Messie, CEO of IDH Investment Management, also praised Hatch Africa’s unique distribution model and its transformative impact on the availability of quality poultry in rural areas.
Future Goals and Vision
Hatch Africa has ambitious plans to expand its impact, aiming to increase its annual chicken sales from 45 million to 340 million by 2030. This growth is part of the company’s vision to reach every farmer in the regions it operates, to achieve one chicken per person per year. This expansion is not only a testament to Hatch Africa’s success but also to the potential of sustainable agricultural practices in transforming rural economies in Sub-Saharan Africa.
Image provided by Hatch Africa
