A pledge by the Ivorian government to pursue a 10-year Poultry Farming Revitalisation Plan is reaping results.

Started in 2010, the plan aims to attain self-sufficiency in poultry production and also seeks to implement an import tax on certain poultry products to protect local production.

Injaro Agricultural Capital Holdings Limited (Injaro), an investment holding company focused on agricultural SME investments in West Africa, has signed an agreement to invest in Proveto SA, an important local poultry inputs-supplier in Côte d’Ivoire.

Proceeds of the investment will be used to fund Proveto’s development plans that were stalled two years ago during the political crisis in Côte d’Ivoire.

In supporting Proveto, Injaro aims to improve the capacity, quality and efficiency of the company’s production in order to promote food security in the region.

Proveto has been operating in the Ivorian poultry sector for over a decade and aims to become the preferred one-stop input shop for small- and medium-scale poultry farmers. The Company’s product portfolio contains inputs for broiler production - i.e. day-old chicks, starter feed and veterinary products.

The poultry sector is an important off-taker of maize, soya and cottonseed-cake. As such, Proveto’s expansion will provide a ready market for smallholder farmers. Additionally, the Company’s facility will employ additional local staff and produce natural fertiliser for neighboring farms.

Dr. Albert N'Guetta, CEO of Proveto, stated: “We are delighted to receive the advice and capital infusion from Injaro. Through this close partnership with Injaro, Proveto will develop an enduring asset base and adopt modern technology and processes in order to make the Company more competitive and profitable. Further, Proveto will be able to consistently provide high quality products and services to poultry farmers."

Dadié Tayoraud, COO of Injaro added: “We are particularly keen about Proveto because the Company’s operations have such a multiplier effect on our social impact objectives. Firstly, poultry products are cheaper than other animal proteins and over 50% of the demand for poultry meat is unsatisfied in Côte d’Ivoire.

"Therefore, Proveto will be contributing significantly to decrease the poultry meat supply deficit especially for many consumers at the bottom of the pyramid. Secondly, the Company’s growth not only enhances the local production of corn and soybeans from smallholder farmers, but also improves the sustainability and profitability of small poultry growers.”

Injaro’s objective is to deliver long-term capital appreciation for its investors while generating positive social development impacts in the West Africa region, by providing growth funding to high potential small- to medium-sized enterprises in the agricultural sector.

It makes investments (of between US$300k and US$3m) in debt, quasi-equity, and equity in small-and medium-sized enterprises along the agricultural value chain - encompassing the full range of activities from inputs, through primary production, conditioning, and aggregation to the processing of food and other agriculture-based products.

Injaro’s investment approach centres on the provision of capital, business advice and capacity-building to high potential SMEs to enable them achieve ambitious growth objectives. This is delivered by a management team with extensive business experience and deep local knowledge, reinforced with the resources of an associated technical assistance facility funded by donors such as the Lundin Foundation and the Canada International Development Agency (CIDA).