Time for Africa: Opportunities Remain Wide Open for African Poultry
The Sub-Saharan African poultry and egg industries have developed fast over the last decade, and this is increasingly attracting interest from local and international investors, according to Rabobank’s report ‘Time for Africa: Opportunities Remain Wide Open for African Poultry.’
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Since our 2016 report ‘Time for Africa,’ we’ve seen ongoing investments in the USD 25 billion African poultry and egg industries, driven by strong long-term fundamentals. This has recently accelerated again after a slowdown in 2016/17 resulting from economic volatility in some African countries, especially those with a high dependence on oil and mining. “The middle class in Africa is expected to continue growing, as the population doubles and more people move to big cities. These core fundamentals, together with the untapped potential of local feed grain production, offer an attractive investment opportunity,” according to Nan-Dirk Mulder, senior animal protein analyst.
“This will all lead to ongoing market growth and modernization at all stages of the value chain, creating an increasingly interesting platform for international investors. The growing demand and modernization of the supply chain will create additional demand for all input manufacturers, like equipment, animal nutrition, genetics, and animal health. Companies in these sectors also need to position themselves to serve Africa’s rising demand better.”
“Investors need to realize that conditions in Africa can be challenging and require a very strategic investment assessment that takes all major factors (i.e. business climate, market growth, supply, and infrastructure) into consideration. If this is done well, the potential upside is big.”
Where to go from here
Nan-Dirk MulderSenior Analyst - Animal Protein Read more