Introduction to Hatch Africa's Strategic Investment
Hatch Africa, an innovative and high-impact poultry business, has successfully raised $9.5 million in a combined investment round featuring prominent contributors AgDevCo and IDH Farmfit Fund. This strategic infusion of funds is set to propel the expansion of Hatch Africa's transformative business model across Sub-Saharan Africa.
Empowering Underserved Rural Households
Hatch Africa is on a mission to empower underserved rural households by making farmers healthier and wealthier. The company's unique approach involves distributing dual-purpose breeds of day-old chicks through an extensive network of agents. These agents rear the birds to maturity before selling them to smallholders. The chickens, specifically bred by Hatch Africa, are well-suited for "backyard" conditions, providing smallholder farmers with a sustainable and efficient poultry solution.
Scaling Impact Across Multiple Territories
The investment, directed towards Flow Equity Africa Ventures (FEAV), the holding company overseeing Hatch's operations in Kenya, Ghana, and Cote d'Ivoire, signifies a significant milestone. It will enable the scaling of Hatch's impactful business model, benefiting millions more smallholder farmer households. The company's operations have already left a lasting imprint in Ethiopia, Uganda, and Rwanda, operating under the brands EthioChicken and Uzima Chicken.
A Proven Track Record of Success
Founded in 2010, Hatch Africa has reached an impressive 4.6 million rural households. The company's success is attributed to its commitment to quality and efficiency. In Ghana and Cote D'Ivoire, Hatch will operate under the brands Premier Poultry and Prestige Poultry, respectively. Kenya will adopt the Uzima Chicken brand, reflecting the company's commitment to bringing vitality to its operations.
Visionary Leadership and Long-Term Commitment
Co-founder Joseph Shields expresses gratitude for the support from committed, long-term investors like AgDevCo and IDH. The strategic investors understand the intricacies of the markets and provide flexible financing tailored to Hatch Africa's needs. Shields envisions the next phase of growth, positioning Hatch Africa as a pan-African business with a profound impact.
Commitment to Impactful Growth
Rebecca Sankar, Managing Director for East Africa at AgDevCo, emphasizes the ongoing commitment to funding Hatch as it expands beyond Ethiopia. This marks AgDevCo's third investment round in support of greenfield expansion, highlighting the shared goal of creating positive impacts, including higher incomes and improved nutrition for rural households across East and West Africa.
Transformative Investment from IDH Farmfit Fund
Mr. Roel Messie, CEO of IDH Investment Management, the manager of the IDH Farmfit Fund, expresses pride in providing debt funding to Hatch Africa. The investment aims to support the expansion in Kenya, Ghana, and Côte d'Ivoire, ensuring access to high-quality dual-purpose chickens for rural populations. The transformative nature of Hatch Africa's business makes it an exciting and impactful investment for the Fund.
Ambitious Growth Plans
Looking ahead, Hatch Africa envisions a six-fold growth in impact by 2030. The company plans to increase the annual sales of chickens from 45 million to an impressive 340 million. With a vision to reach every farmer and achieve one chicken per person per year in each country of operation, Hatch Africa stands as a beacon of sustainable and impactful growth in the poultry industry across Sub-Saharan Africa.