Notes From Africa: Twiga Foods, Tiger Brands, MB, Kingdom Exim Ghana, Tuskys
ESM is proud to launch a new weekly series, Notes From Africa, which will bring you the latest retail, consumer goods and food and beverage stories from across the African continent. In this week's report:
Kenya: Twiga Foods Raises $30 million For Its African Expansion Plan
Kenya food retailer Twiga Foods has raised $30 million to fund its African expansion plan. According to local media reports, the fund was mobilised to the tune of $23.75 million in equity and $6 million in debt. The fund will be used to extend its fleet of motorised tricycles, to improve the delivery of fruits and vegetables, sourced from a supply chain of 300 medium-scale contract farmers, to retailers.
The company, which launched its activities in Nairobi in 2014, aims to address the issue of high food costs caused by fragmented food markets in African countries.
South Africa: Tiger Brands Finalises Sale Of Meat Processing Businesses
South African food manufacturer Tiger Brands has completed the sale of its value-added meat products business units (VAMP) to Silver Blade Abattoir, a subsidiary of Country Bird and one of the largest poultry farmers in the country. According to local media reports, the transaction was valued at R158 million ($9 million).
The move comes more than two years after a 2017 listeria outbreak, following which Tiger Brands stated that VAMP was not an 'ideal fit' within its portfolio.
Ethiopia: Government Inaugurates New Abattoir In The Eastern Region
A new slaughterhouse has been unveiled in Eastern Ethiopia, near the Somali border. With a daily slaughter capacity of 3,000 goats and sheep as well as 100 camels, the unit will produce meat to be exported to Gulf countries. The main export targets are the United Arab Emirates and Saudi Arabia, which already account for over 80% of the country’s beef exports.
Ethiopia has the largest livestock population in Africa – according to the US Department of Agriculture (USDA), the livestock sector accounts for 12% to 16% of Ethiopia’s GDP.
Kenya: Tuskys Shuts Down Three More Branches Due To Cash Constraints
Tuskys, the second largest supermarket chain in Kenya, has closed three more branches, according to local media reports. The company provided no reasons for its decision, with the branches are the latest of a series of closures initiated by Tuskys, which is involved in disputes with property owners over rent arrears.
Currently, Tuskys is cash-strapped, owing Sh6 billion ($55 million) to its suppliers. At its peak, the supermarket chain operated 64 outlets.
Ghana: Kingdom Exim Ghana To Invest $15 million In A New Cashew Processing Unit
Ghanaian agro products exporter Kingdom Exim Ghana plans to invest $15 million in the construction of a cashew processing unit. The investment plan is spread over three years, with the company investing $5 million each year for equipment purchase and field works. The processing capacity of the unit has yet to be disclosed.
Kingdom Exim Ghana owns about 500 acres of cashew plantation in Bono East and has a supply chain of over 1,000 out-growers. Ghana, which produces 70,000 tons of cashew nuts yearly, is still far behind Côte d’Ivoire, the world’s largest cashew producer, which boasts an annual production of over 700,000 tonnes.
Ethiopia: Dairy Company MP Plc Targets Regional Markets To Diversify Client Base
Ethiopian dairy company MB Plc is eying new markets in the Eastern region, according to local media reports. Markets targeted by the company include Sudan, Djibouti and Somaliland. The company plans to export long-life milk, such as UHT milk, to these markets thanks to its new Addis Ababa-based processing unit, whose daily capacity is 40,000 litres.
This strategy aims to diversify its markets beyond Ethiopia, whose annual per capita milk consumption (20 litres) is one of the lowest in East Africa and in the world. For instance, its neighbour Kenya has an annual per capita milk consumption of 120 litres while Uganda’s is 53 litres.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Espoir Olodo. Click subscribe to sign up to ESM: The European Supermarket Magazine.