Philafrica Foods (Pty) Ltd (“Philafrica Foods”), part of AFGRI Group Holdings, and one of the largest food processing companies in South Africa, has entered into a 50/50 joint venture with Novos Horizontes (“New Horizons”), an integrated chicken producer located in northern Mozambique. This forms part of Philafrica Foods’ planned investment of between R1 billion and R1.5 billion over the next 18-24 months in Africa.
With a focus on investing in food categories across Africa, and on locally-sourced raw materials, Philafrica is actively seeking investment opportunities on the continent, with Novos Horizontes being the first of many.
Novos Horizontes was founded in 2005 with a core vision of unlocking the potential – both in terms of labour and land – in Mozambique by supporting smallholder farmers in agribusiness. The joint venture with Philafrica Foods will allow the company to continue its expansion in that country.
“We saw in Novos Horizontes a trusted partner, a profitable business, and importantly, having the same values as us in terms of transforming the lives of smallholder farmers. Moreover, our expertise in rendering, feed mixing and poultry will drive substantial synergies as the company expands in Mozambique,” said Roland Decorvet, CEO of Philafrica Foods.
Decorvet adds that currently 60-70% of the poultry consumed in Mozambique is imported, and thus there is massive opportunity. “We there see immense potential to replace imported products with local production and are pleased to have found a strong operating partner in Mozambique with decades of experience in the poultry value chain.”
Andrew Cunningham, Executive Chairman of Novos Horizontes, stated: “We are excited by the potential of this investment and partnership to enhance our vision to unlock potential in Mozambique. We aim to be the premier poultry producer in the country and to expand into other value chains where agro-industrial processing and building brands can pull production from smallholder farmers.”
In addressing potential concerns pertaining to the current outbreak of avian flu, Decorvet said that while there have fortunately been no reported cases in Mozambique to date, the company is actively developing contingency and risk management plans.
Philafrica Foods is supported by the AFGRI Group, an investment holding company focused on food and agriculture with an underlying ethos as an enabler of food security in line with the Philafrica vision.