AFRICA – Hatch Africa, a rapidly expanding poultry business focused on underserved rural households, has successfully raised US$9.5 million in investment from AgDevCo and IDH Farmfit Fund to enhance poultry advancements.
The funding, a collaboration between AgDevCo and IDH Farmfit Fund, will be channeled into Flow Equity Africa Ventures (FEAV), the holding company overseeing Hatch’s operations in Kenya, Ghana, and Cote d’Ivoire.
This strategic investment aims to scale Hatch Africa’s innovative business model, benefiting millions of smallholder farmer households.
Hatch Africa revealed its dedication to enhancing the health and wealth of farmers. The company employs a unique model of distributing dual-purpose breeds of day-old chicks through an extensive network of agents.
These agents rear the birds to maturity, around five weeks, before selling them to smallholders. The chickens are well-suited for “backyard” conditions, with customers typically owning between 5 and 20 birds each.
Hatch chickens, compared to indigenous breeds, exhibit faster growth, increased egg-laying capacity, and enhanced disease resistance.
Established in 2010, Hatch Africa currently reaches 4.6 million rural households in Ethiopia, Uganda, and Rwanda under the brands EthioChicken and Uzima Chicken.
In Ghana and Cote D’Ivoire, it will operate under the brands Premier Poultry and Prestige Poultry, respectively. Kenya will adopt the Uzima Chicken brand, which translates to “full of life” in Swahili.
Joseph Shields, Co-founder of Hatch Africa, expressed gratitude for the support of committed, long-term investors like AgDevCo and IDH.
He emphasized the importance of their understanding of the markets and their ability to provide flexible financing to suit the company’s needs.
Rebecca Sankar, Managing Director for East Africa at AgDevCo, highlighted the continuation of funding for Hatch Africa’s growth beyond Ethiopia.
“This marks AgDevCo’s third round of investment, supporting greenfield expansion and aiming to deliver greater impact, including higher incomes and improved nutrition for rural households across East and West Africa,” she said.
Roel Messie, CEO of IDH Investment Management, stated that the IDH FarmFit Fund’s debt funding to Hatch Africa aligns with the fund’s commitment to supporting transformative businesses.
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