ETHIOPIA- The Africa-focused public-private food manufacturer Africa Improved Foods (AIF) has announced plans to expand into Ethiopia through a US$40 million investment in a new manufacturing plant in Ethiopia.
The Ethiopian factory will be the manufacturer’s second factory in Africa and will enable it to reach more people.
The funding needed for the partnership will stem from AIF’s partnerships with FMO and IFC.
Ramesh Moochikal, AIF’s CEO said, “We are in the process of raising capital for expanding our growth into Ethiopia. You know Ethiopia has a population exceeding 100 million, and a lot of people are struggling with malnutrition.”
The new facility is predicted to impart the same economic gains to the Ethiopian market as in Rwanda.
According to AIF, the Rwandan facility has contributed 5-10% increase in exports and earned the country more than US$24 million in foreign exchange.
It has also helped improve the agribusiness value chain in Rwanda by working closely with smallholder farmers.
AIF partners with public and private sectors to extend its reach beyond the conventional agribusiness value chain.
Products from the Rwandan factory are sent to people in DRC, Uganda, South Sudan, and Ethiopia through the IRC and Red Cross.
The new facility is expected to serve Ethiopia, although the company plans to expand its reach beyond Ethiopia.
The manufacturer has developed various processed food products made from Africa-grown cereals, mainly to tackle malnutrition in Africa.
The processed food products from AIF’s facilities are distributed through commercial distribution channels and relief programs like the World Food Program, UNICEF, and the Red Cross.
AIF offers high-quality, affordable, locally sourced foods to Africa’s most nutritionally vulnerable regions.
AIF serves 1.6 million consumers daily, works with more than 90,000 smallholder farmers, and has a net incremental value of US$1 billion since its inception.
Looking ahead to expand operations across Africa, AIF announced its plans to establish five more factories in Nigeria and Zambia before 2030.
Africa is projected to have the world’s fastest-growing population by 2050, and a significant portion is currently undernourished, particularly children under five years.
AIF therefore aims to impact over 10 million lives daily by the end of 2028, scaling the reach of safe, nutritious, and affordable food across the continent.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
